This is a fantastic breakdown and I will dig deeper into it, prob grab a small bag. Has anyone here in the community taken a dive into what $sushi is doing with their, yet to launch, NFT marketplace called Shoyu? If they can pull it off, it would probably be one of the most comprehensive NFT market sites. All NFTs priced in $sushi might drive some demand for token.
I don't know about this one BTB. I've been in this space for a long time (been part of the Tezos ICO), and I think Tezos really has had a slow start (not helped by the lawsuit). Admittedly, hic etc nunc has been making some waves. Some. Every chain which hasn't blown up in price makes the same claim, Decred says they focus on development over marketing too etc.
Polkadot and Solana are far from being "copy pasta ETH". I see articles of this kind all over Messari Pro, no need for BTB to post similar articles. I come to BTB for a clear head not any shilling of L1 projects.
There's no mention of the early disputes amongst founding members that ultimately doomed Tezos. The project was promising, until the lawsuits:
“There has been a totally inadequate deployment of resources,” by the current foundation, said Olaf Carlson-Wee, the founder and CEO of the cryptocurrency investing fund Polychain Capital, which signed on to be one of the new foundation’s seven directors. Polychain invested an undisclosed amount in last summer’s Tezos offering.
Tezos has not "focused" on the tech to the exclusion of marketing, they have a gouche billboard, as the article noticed, in the New York Mets stadium: they're desperate. They're incompetent *both* at marketing and tech. The reason the project floundered is due to severe mismanagement by the founding team.
I'd love to see a value comparison of all the major smart-contract platforms. It is difficult to continuously aggregate TPS and SCC for all the different blockchains.
Sorry for the late comment, but I've been into mostly fuckery for the last 3 weeks and am catching up.
First, thanks to whoever wrote this... good analysis. The way you used SCC to value the project was interesting. Stealing it.
Second, I'm heavy into SOL and won't be looking into another project. And I already dumped my small bag of Tezos earlier this year on a pump. I don't think it has the 'stuff', and the technology was underwhelming to me. Also, the protocol's incentives will work against its use short-term, IMO.
But that's just a guess. Nobody knows what is going to happen. I'll probably be wrong to some extent—only so many bags to grab though.
What is the name of the discord? I was hoping to find some answers for a quipuswap error I am getting. I have set up a kukai wallet and connected it to Quipuswap, but I am getting an error when trying to swap xtz for plenty.
Error is as follows: Some of the parameters you provided are invalid and the request could not be completed. Please check your inputs and try again.
Do I need to up my slippage tolerance? Currently set at 12%.
You've put a valuation for what Tez should be EOY. To see if worth looking at need to compare to ETH. Do you have an expected valuation for ETH?
Seems like marketing is big downside here. I can't imagine the overlap of people who care about Latin- "hit et nunc" and crypto overlap often. Have heard there's lots of good art on tezos network.
This is a very well written analysis on Tezos. Never thought to look at Smart Contract Calls to value a chain. Would be great to see an analysis like this on Solana.
tezos is a good working product. Will look at it for defi. I like DOT too in terms of a blockchain design by having the token really being used by all holders, unlike projects that are parasitic (means raising tokens and dumping it on market for funds). It is launching and will have problems, but it will catch up. Excited for metcalfe’s Law on it. I’m not promoting DOT, just sharing my perspective in terms of blockchain design where projects not dumping funds like parasites.
Reading through the comments, I agree that Tezos has largely fallen off the radar and it is hard to envision a world where Tezos truly competes for market share with other L1s (or L2s in the case of Polygon). But none of that really matters, as you mentioned, if the usage growth is there.
I am building both a quantitative and qualitative valuation model for comparable networks that offers insight into which are trading above and below "fair market value" (which I've defined in a number of ways - mostly usage/user based, so I am really interested in where/how you are pulling the SCC metric. My first thought is that it seems like gauging the maturity of primitives and overall adoption is largely lost by that metric because it doesn't take into account size of transaction nor number of users. Please correct me if I am wrong, but couldn't the recent "growth" be driven by a small number of large players interacting with less complex (and thus costly) smart contracts?
When performing a comparable analysis, I typically start with gauging growth based on active addresses and number of number of wallets holding a balance. I then look at trading multiples against two primary metrics:
TVL (DeFi + staked value on PoS chains) - I realize the weaknesses in this metric but it ends up being negligable in comparison to the wildly diverse multiples that emerge.
Transfer Volume - meaning value of Trezos (I don't like using the using the phrase "transaction volume" here because it is mistaken as trading volume.
Their are a number of other metrics I look at, but to me, there are no others that adequately reveal existing operational utility, growth prospects, and value accumulation. TVL, even though not completely accurate, establishes a baseline figure for network value.
Using these metrics, I immediately realized how grossly undervalued MATIC and AVAX were 9mo ago against their competitors and went all in. Now that the space is more populated/up and running, I performed the same multiple comparison a month ago and found not much had changed apart from AVAX being even more undervalued...although it's far more in line at this point in time :)
Long story short, I would love incorporate SCC into my assessment, but would be interested to get your perspective on what it actually indicates and how it might be misleading.
Links to Q&A/Platforms/Wallets/References (Written by BowTiedTruther)
For those who are interested in taking the deep dive into Tezos after reading this post, I have provided
below a list of various resources that should be helpful in getting started and more acclimated. This
list is by no means exhaustive. The Tezos Reddit thread, Twitter, Discord, etc. are also great resources.
Recommended Tezos wallets
▪ List of recommended wallets: https://tezos.com/learn/store-and-use/
▪ Popular wallets: Kukai (https://wallet.kukai.app/), works on mobile browsers), Temple
(https://templewallet.com/) (both allow you to link via Ledger Nano)
▪ Be sure to use the links provided on the Tezos.com page, beware of phishing sites
Staking on Tezos (Baking and Delegating)
▪ How does Baking work?
• On the “POS” based blockchain Tezos, holders can participate in the process of
forming blocks and are rewarded for it by staking themselves if they hold enough Tez
(8000 per roll), or by delegating their Tez to a “Baker” while keeping full control of
their Tez : https://baking-bad.org/docs/tezos-staking-for-beginners/)
▪ Where do I stake?
• You choose between several addresses where you can delegate your Tez from a
wallet, by comparing relevant metrics (rewards, free space, voting
history: https://baking-bad.org/docs/where-to-stake-tezos) of different Bakers
(https://baking-bad.org/ or https://tzkt.io/bakers/all or https://tezos-nodes.com/)
• Ledger Live allows you to delegate right from their platform
▪ How long do I have to wait before I get my rewards?
• It takes between 30-40 days to receive the first payout, then every 3 days
(https://baking-bad.org/docs/tezos-staking-for-beginners/)
▪ How to become a baker on Tezos?
• https://wiki.tezosagora.org/use/baking/setting-up-a-secure-baker
• https://wiki.tezosagora.org/use/baking/key-baking-resources
▪ Corporate bakers on Tezos?
• EDF Exaion (https://exaion.edf.fr/en/exaion/our-news/exaion-edf-group subsidiary-becomes-a-tezos-baker)
• Ubisoft (https://twitter.com/ubisoft/status/1384451272992976898)
• Wakam (https://www.wakam.com/tezos_baker/)
• Smartlink (https://www.smartlink.so/baker/) – this is an extremely interesting
project with a lot of potential. You can purchase SMAK on QuipuSwap
currently and on Plenty in the near future.
A few (not all) DeFi platforms on Tezos
▪ Decentralized exchanges (DEX), AMMs, Farming, Liquidity Pools:
• Plenty (https://www.plentydefi.com/swap)
• Quipuswap (https://quipuswap.com/swap)
• Wrap Protocol (https://app.tzwrap.com/wrap)
▪ Lending: Youves (https://app.youves.com/), Kolibri Finance (https://kolibri.finance/)
▪ Stablecoins: USDtz, wUSDT, wUSDC, USDS (Stably), kUSD (Kolibri), uUSD by Youves
(dollar pegged), EURL by Lugh (euro pegged),
NFT platforms/projects on Tezos
▪ What are NFTs, and why Tezos is the best place to mint/collect them (OneOf
presentation: https://www.youtube.com/watch?v=BpEIl9JdZTU,
9
▪ McLaren presentation: https://www.mclaren.com/racing/inside-the-mtc/nft-guide/
▪ Red Bull presentation: https://www.redbull.com/ie-en/redbullracing/tezos-joins-as-official blockchain-partner)
▪ NFT Marketplaces:
o Hicetnunc (https://www.hicetnunc.xyz/)
o Objkt (https://objkt.com/)
o Kalamint (https://kalamint.io/)
o Truesy (https://www.truesy.com/)
o Bazaar (https://bazaarnft.xyz/)
o Minterpop (https://minterpop.com/)
▪ Music: OneOf (https://www.oneof.com/), AmplifyX (https://www.amplifyx.com/)
▪ Sport: https://www.goldengoals.io/
▪ Comics: https://interpopcomics.com/home
▪ Trading card games: https://www.pixelpotus.com/
▪ Programmatically randomly generated avatars: https://objkt.com/collection/tezzardz
Other use cases on Tezos
▪ CeFi use cases on Tezos
• Société Générale bank (https://www.societegenerale.com/en/news/press release/first-structured-product-public-blockchain)
• InCore Bank (https://cointelegraph.com/news/swiss-b2b-bank-incore-launches new-tokenization-tool-using-tezos)
• Equisafe investment (https://www.equisafe.io/)
• Aqarchain real estate investment (https://aqarchain.io/)
• MountX real estate investment (https://www.mountx.io/post/mountx-vertalo choose-tezos-for-first-ever-tokenization-of-real-estate-in-mexico)
▪ E-voting: Electis (https://www.electis.io/)
▪ Comics and Gaming: Interpop (https://www.interpop.io/)
Future projects to be excited about
▪ NFTs from exclusive partnerships with Tezos:
• Red Bull Racing (https://www.redbull.com/ca-en/redbullracing/tezos-joins-as official-blockchain-partner)
• McLaren Racing (https://www.mclaren.com/racing/partners/tezos/)
• New York Mets (https://news.tezoscommons.org/tezos-ecosystem-joins-n-y-mets as-new-advertising-partner-f3050e1b569b)
▪ Emergents: trading card game by an impressive team (https://www.emergents.gg/)
▪ Smartlink (escrow, DeFi, marketplace: https://www.smartlink.so/) and Vortex (DEX by
Smartlink): https://blog.smartlink.so/introducing-vortex-next-gen-amm-built-on-tezos 13ab5ee44519)
▪ Juster: Decentralized betting protocol by the Baking Bad team (https://juster.fi/)
▪ Tezos Finance: DeFi, lending (https://tezos.finance/)
News and blockchains statistics
▪ Tezos news: https://xtz.news/
▪ Blockchain activity: https://tzstats.com/ or https://tzkt.io/
▪ Transactions as it happens: https://tzflow.com/
▪ Smart contracts explorer: https://better-call.dev/stats/mainnet/general
▪ Tokens price and statistics: https://analytics.quipuswap.com/overview
▪ Node explorer: https://tezedge.com/#/network
References
10
▪ White paper (https://wiki.tezosagora.org/whitepaper/)
▪ Tezos (https://tezos.com/)
▪ Open Tezos (https://opentezos.com/)
▪ Tezos Agora (https://www.tezosagora.org/)
▪ Tezos Commons (https://tezoscommons.org/)
▪ Tezos Ukraine (https://tezos.org.ua/en)
▪ Nomadic Labs (https://www.nomadic-labs.com/)
Developer Resources
▪ First steps and general references : https://tezos.com/developer portal/ and https://opentezos.com/
▪ Michelson, Tezos smart contracts language:
o https://tezos.gitlab.io/active/michelson.html and https://tezos.gitlab.io/michelson reference/
▪ High end alternatives to Michelson: Ligo (https://ligolang.org/), SmartPy
(https://smartpy.io/), Archetype (https://archetype-lang.org/)
▪ Octez, implementation of the Tezos software by Nomadic
Labs: https://tezos.gitlab.io/index.html
This is a fantastic breakdown and I will dig deeper into it, prob grab a small bag. Has anyone here in the community taken a dive into what $sushi is doing with their, yet to launch, NFT marketplace called Shoyu? If they can pull it off, it would probably be one of the most comprehensive NFT market sites. All NFTs priced in $sushi might drive some demand for token.
I don't know about this one BTB. I've been in this space for a long time (been part of the Tezos ICO), and I think Tezos really has had a slow start (not helped by the lawsuit). Admittedly, hic etc nunc has been making some waves. Some. Every chain which hasn't blown up in price makes the same claim, Decred says they focus on development over marketing too etc.
Polkadot and Solana are far from being "copy pasta ETH". I see articles of this kind all over Messari Pro, no need for BTB to post similar articles. I come to BTB for a clear head not any shilling of L1 projects.
This article causes reputational harm to BTB.
There's no mention of the early disputes amongst founding members that ultimately doomed Tezos. The project was promising, until the lawsuits:
“There has been a totally inadequate deployment of resources,” by the current foundation, said Olaf Carlson-Wee, the founder and CEO of the cryptocurrency investing fund Polychain Capital, which signed on to be one of the new foundation’s seven directors. Polychain invested an undisclosed amount in last summer’s Tezos offering.
(https://www.wsj.com/articles/a-hot-coin-offerings-investors-go-shopping-for-a-new-board-a-hot-coin-offerings-investors-go-shopping-for-a-new-board-1517490000
Tezos has not "focused" on the tech to the exclusion of marketing, they have a gouche billboard, as the article noticed, in the New York Mets stadium: they're desperate. They're incompetent *both* at marketing and tech. The reason the project floundered is due to severe mismanagement by the founding team.
I'd love to see a value comparison of all the major smart-contract platforms. It is difficult to continuously aggregate TPS and SCC for all the different blockchains.
Sorry for the late comment, but I've been into mostly fuckery for the last 3 weeks and am catching up.
First, thanks to whoever wrote this... good analysis. The way you used SCC to value the project was interesting. Stealing it.
Second, I'm heavy into SOL and won't be looking into another project. And I already dumped my small bag of Tezos earlier this year on a pump. I don't think it has the 'stuff', and the technology was underwhelming to me. Also, the protocol's incentives will work against its use short-term, IMO.
But that's just a guess. Nobody knows what is going to happen. I'll probably be wrong to some extent—only so many bags to grab though.
Thanks again.
What is the name of the discord? I was hoping to find some answers for a quipuswap error I am getting. I have set up a kukai wallet and connected it to Quipuswap, but I am getting an error when trying to swap xtz for plenty.
Error is as follows: Some of the parameters you provided are invalid and the request could not be completed. Please check your inputs and try again.
Do I need to up my slippage tolerance? Currently set at 12%.
Thanks all!
You've put a valuation for what Tez should be EOY. To see if worth looking at need to compare to ETH. Do you have an expected valuation for ETH?
Seems like marketing is big downside here. I can't imagine the overlap of people who care about Latin- "hit et nunc" and crypto overlap often. Have heard there's lots of good art on tezos network.
Thanks for allowing the post. It’s great to see the community contributing
When you're determining the multiple, why do you multiply smart contract calls by 100?
This is a very well written analysis on Tezos. Never thought to look at Smart Contract Calls to value a chain. Would be great to see an analysis like this on Solana.
Great write up! Tezos was off my radar. Looks legit
Somebody should do a write up on AVAX(Avalanche) too.
The most efficient and fastest blockchain I have ever seen.
Lots of dapps and now NFTs as well.
tezos is a good working product. Will look at it for defi. I like DOT too in terms of a blockchain design by having the token really being used by all holders, unlike projects that are parasitic (means raising tokens and dumping it on market for funds). It is launching and will have problems, but it will catch up. Excited for metcalfe’s Law on it. I’m not promoting DOT, just sharing my perspective in terms of blockchain design where projects not dumping funds like parasites.
Reading through the comments, I agree that Tezos has largely fallen off the radar and it is hard to envision a world where Tezos truly competes for market share with other L1s (or L2s in the case of Polygon). But none of that really matters, as you mentioned, if the usage growth is there.
I am building both a quantitative and qualitative valuation model for comparable networks that offers insight into which are trading above and below "fair market value" (which I've defined in a number of ways - mostly usage/user based, so I am really interested in where/how you are pulling the SCC metric. My first thought is that it seems like gauging the maturity of primitives and overall adoption is largely lost by that metric because it doesn't take into account size of transaction nor number of users. Please correct me if I am wrong, but couldn't the recent "growth" be driven by a small number of large players interacting with less complex (and thus costly) smart contracts?
When performing a comparable analysis, I typically start with gauging growth based on active addresses and number of number of wallets holding a balance. I then look at trading multiples against two primary metrics:
TVL (DeFi + staked value on PoS chains) - I realize the weaknesses in this metric but it ends up being negligable in comparison to the wildly diverse multiples that emerge.
Transfer Volume - meaning value of Trezos (I don't like using the using the phrase "transaction volume" here because it is mistaken as trading volume.
Their are a number of other metrics I look at, but to me, there are no others that adequately reveal existing operational utility, growth prospects, and value accumulation. TVL, even though not completely accurate, establishes a baseline figure for network value.
Using these metrics, I immediately realized how grossly undervalued MATIC and AVAX were 9mo ago against their competitors and went all in. Now that the space is more populated/up and running, I performed the same multiple comparison a month ago and found not much had changed apart from AVAX being even more undervalued...although it's far more in line at this point in time :)
Long story short, I would love incorporate SCC into my assessment, but would be interested to get your perspective on what it actually indicates and how it might be misleading.