โจ Try hovering over any cast and click to mint it
In grad school, there were days I pulled all nighters playing DoTA or LoL with friends at USCโs GamePipe Lab. This week, I unintentionally stayed up extremely late trying to build software thatโll be used to power Farcaster. It was THAT fun! Building with software has been always fun for me. Coding agents have shortened the time span of the effort๐reward cycle enough for it to feel as rewarding as a game today. Multiplayer software building mode is going to be even more interesting.
Happy Valentines Day! Donโt be afraid to get after it today, but remember to always get explicit consent first. (Talking about launching memecoins for random web 2 developersโ clawd bots on X dot com.)
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I love these GAs ๐ Spread some love across the feed, have some fun AND get magic internet money. ๐ฅ ๐ Wears Red on V-Day: @milibooo ๐ Forgets it's V-Day: @duckfacts.eth until they check celebrationhub. ๐ซ Wants Chocolates: @mvr ๐ง Secret Cringe Playlist: @push- ๐ผ The Sweetheart: @yerbearserker ๐ฑ Drunk Texts an Ex: @dosir ๐ The $TYSM Maxi: Tough callโฆ @stemo.eth / @mr-r0b0t ๐ Gets Friend Zoned: @naruto007.eth ๐ Bonus (My Web3 Valentine): @alitiknazoglu obviously. The bromance is real.๐งก๐
Recently I have been starting to worry about the state of prediction markets, in their current form. They have achieved a certain level of success: market volume is high enough to make meaningful bets and have a full-time job as a trader, and they often prove useful as a supplement to other forms of news media. But also, they seem to be over-converging to an unhealthy product market fit: embracing short-term cryptocurrency price bets, sports betting, and other similar things that have dopamine value but not any kind of long-term fulfillment or societal information value. My guess is that teams feel motivated to capitulate to these things because they bring in large revenue during a bear market where people are desperate - an understandable motive, but one that leads to corposlop. I have been thinking about how we can help get prediction markets out of this rut. My current view is that we should try harder to push them into a totally different use case: hedging, in a very generalized sense (TLDR: we're gonna replace fiat currency) Prediction markets have two types of actors: (i) "smart traders" who provide information to the market, and earn money, and necessarily (ii) some kind of actor who loses money. But who would be willing to lose money and keep coming back? There are basically three answers to this question: 1. "Naive traders": people with dumb opinions who bet on totally wrong things 2. "Info buyers": people who set up money-losing automated market makers, to motivate people to trade on markets to help the info buyer learn information they do not know. 3. "Hedgers": people who are -EV in a linear sense, but who use the market as insurance, reducing their risk. (1) is where we are today. IMO there is nothing fundamentally morally wrong with taking money from people with dumb opinions. But there still is something fundamentally "cursed" about relying on this too much. It gives the platform the incentive to seek out traders with dumb opinions, and create a public brand and community that encourages dumb opinions to get more people to come in. This is the slide to corposlop. (2) has always been the idealistic hope of people like Robin Hanson. However, info buying has a public goods problem: you pay for the info, but everyone in the world gets it, including those who don't pay. There are limited cases where it makes sense for one org to pay (esp. decision markets), but even there, it seems likely that the market volumes achieved with that strategy will not be too high. This gets us to (3). Suppose that you have shares in a biotech company. It's public knowledge that the Purple Party is better for biotech than the Yellow Party. So if you buy a prediction market share betting that the Yellow Party will win the next election, on average, you are reducing your risk. Mathematical example: suppose that if Purple wins, the share price will be a dice roll between [80...120], and if Yellow wins, it's between [60...100]. If you make a size $5 bet that Yellow will win, your earnings become equivalent to a dice roll between [70...110] in both cases. Taking a logarithmic model of utility, this risk reduction is worth $0.58. Now, let's get to a more fascinating example. What do people who want stablecoins ultimately want? They want price stability. They have some future expenses in mind, and they want a guarantee that will be able to pay those expenses. But if crypto grows on top of USD-backed stablecoins, crypto is ultimately not truly decentralized. Furthermore, different people have different types of expenses. There has been lots of thinking about making an "ideal stablecoin" that is based on some decentralized global price index, but what if the real solution is to go a step further, and get rid of the concept of currency altogether? Here's the idea. You have price indices on all major categories of goods and services that people buy (treating physical goods/services in different regions as different categories), and prediction markets on each category. Each user (individual or business) has a local LLM that understands that user's expenses, and offers the user a personalized basket of prediction market shares, representing "N days of that user's expected future expenses". Now, we do not need fiat currency at all! People can hold stocks, ETH, or whatever else to grow wealth, and personalized prediction market shares when they want stability. Both of these examples require prediction markets denominated in an asset people want to hold, whether interest-bearing fiat, wrapped stocks, or ETH. Non-interest-bearing fiat has too-high opportunity cost, that overwhelms the hedging value. But if we can make it work, it's much more sustainable than the status quo, because both sides of the equation are likely to be long-term happy with the product that they are buying, and very large volumes of sophisticated capital will be willing to participate. Build the next generation of finance, not corposlop.
Happy valentines day pack ๐บ ๐ Wears Red on V-Day: @kayonfire ๐ Forgets it's V-Day: @teedosh ๐ซ Wants Chocolates: @milibooo ๐ง Secret Cringe Playlist: @thec1 ๐ผ The Sweetheart: @fercaggiano ๐ฑ Drunk Texts an Ex: @stemo.eth ๐ ๐ ๐ The $TYSM Maxi: @buckyball ๐ Gets Friend Zoned: @treeskulltown.eth ๐ Bonus (My Web3 Valentine): @zosphotos
Happy V-Day, Pack. ๐บ Time to show the squad some love. No complex rules today, just pure vibes and calling out your people. QUOTE CAST ๐ this post and tag the crew who fits the bill. Let's see who your people are. ๐ COPY & PASTE THIS TEMPLATE ๐ ๐ Wears Red on V-Day: @tonyminh ๐ Forgets it's V-Day: @jiablo.eth ๐ซ Wants Chocolates: @abeg007.eth ๐ง Secret Cringe Playlist: @ventra ๐ผ The Sweetheart: @yalda6411 ๐ฑ Drunk Texts an Ex: @dyahayuneer ๐ The $TYSM Maxi: @lizajovan ๐ Gets Friend Zoned: @woawoame ๐ Bonus (My Web3 Valentine): @forgottenone.eth Let's flood the feed. Don't leave your crew hanging. ๐
Happy V-Day, Pack. ๐บ Time to show the squad some love. No complex rules today, just pure vibes and calling out your people. QUOTE CAST ๐ this post and tag the crew who fits the bill. Let's see who your people are. ๐ COPY & PASTE THIS TEMPLATE ๐ ๐ Wears Red on V-Day: @ ๐ Forgets it's V-Day: @ ๐ซ Wants Chocolates: @ ๐ง Secret Cringe Playlist: @ ๐ผ The Sweetheart: @ ๐ฑ Drunk Texts an Ex: @ ๐ The $TYSM Maxi: @ ๐ Gets Friend Zoned: @ ๐ Bonus (My Web3 Valentine): @ Let's flood the feed. Don't leave your crew hanging. ๐
Happy V-Day, Pack. ๐บ ๐ Wears Red on V-Day: @rosekeyes ๐ Forgets it's V-Day: @yalda6411 ๐ซ Wants Chocolates: @dexwhale ๐ง Secret Cringe Playlist: @nazii-kn ๐ผ The Sweetheart: @virgoo ๐ฑ Drunk Texts an Ex: @miladtik2 ๐ The $TYSM Maxi: @ayta86 ๐ Gets Friend Zoned: @hossein77 ๐ Bonus (My Web3 Valentine): @jeyloo.eth