THE 7 POWERS IN CRYPTO

Summary from the TLDR Crypto newsletter

Traditional moats like scale economies, network effects, and switching costs are being eroded by open-source code and composability. Certain advantages survive: "Lindyness" (Aave capturing 100x more lending supply than competitors at lower rates due to multi-cycle security track record), liquidity network effects (Pump's bonding curve mechanizing tipping points), counter-positioning (Morpho's isolated markets vs Aave's monolithic approach), and brand power (CryptoPunks' cryptographically-enforced provenance). Durable crypto advantage accrues around mechanisms that make ownership credibly scarce – "internet bearer assets" – where security history becomes a competitive moat.