THE HOT START PROBLEM: WHEN SPECULATION IS A FEATURE VS A BUG

Summary from the TLDR Crypto newsletter

The hot start problem is when the introduction of a token limits the window of time a startup has to find PMF and facilitate organic growth before users and liquidity decline. It is better than the cold start problem for highly competitive markets, like LRTs, and networks with passive supply-side participation, like L1s with staking or DePIN. Though tokens are valuable tools for bootstrapping networks, they require serious consideration into how to properly reward organic users and drive proper incentives across the protocol.