Sovereign-chain economics are unsustainable without massive volume
Akash Founder: Why We're Leaving our Sovereign L1 Behind (Akash Alpha)
“Only way to offset this risk of unknown cost is have massive amounts of transactions being written. Well, it’s very unlikely to have that many amount of transactions for a non-financial product… you need a lot of volume to be profitable. So economics at a certain stage becomes unsustainable without the volume… To summarize: crypto-economic value was not justifiable in terms of security, and second, validator profitability cannot be sustained with the current economics… and the market conditions don’t seem to be that favorable considering what’s happening geopolitically.” — 00:07:06
Context: The core economic argument for leaving the sovereign L1: “no one knows the answer” to the right emission level in proof-of-stake chains. Summary portion at [00:09:18].