PROTOCOL VALUE ACCRUAL BLACK PILL

Summary from the TLDR Crypto newsletter

Blockchains face complex challenges in value accrual and must balance revenue from transaction fees, MEV, and token emissions while navigating the trade-off of higher per-transaction value or maximum volume capacity. Appchains and application-specific sequencing could internalize priority fees and MEV for apps, potentially reducing protocol revenue. With enough misalignment between protocols and apps, there could be a shift in value accrual from protocols to the apps, forcing protocols to rely on high transaction volumes rather than individual transaction value.