# scaling to 10k ft: the fat alp thesis Source: https://paragraph.xyz/@seedclubhq/scaling-to-10k-ft-the-fat-alp-thesis Kiwi News: https://news.kiwistand.com/stories/scaling-to-10k-ft-the-fat-alp-thesis?index=0x6778265b2eb2f897bac26e71175ebc94a15aa9f32ae630268d505fe8957342f2f751f6d9 Submitted by misha on 2025-01-03 UTC, 1 upvote, 0 comments ## Summary This newsletter roundup covers several crypto topics, with its longest section centered on David Phelps's "Fat App Thesis," which argues that attention has shifted from blockchain protocols to the apps built on them. Phelps revisits Joel Monegro's 2016 "Fat Protocol Thesis," which held that protocols would capture more value than apps, and says that view has become an obsession treating chains as untouchable. He cites Polymarket, pump dot fun and Hyperliquid as apps delivering real value without relying on token speculation. Other items in the roundup include Staking $HYPE going live on mainnet and Boyco pre-deposit vaults amassing almost half a billion USD ahead of Berachain's Royco launch. ## Article bonjour, i send this newsletter to you as i sit perched precariously on a chairlift in the french alps (i am normal and can be trusted with working remotely). my fingers frostbitten from typing, the landscape as white and pristine as the pages of an unaudited stablecoin whitepaper - full of promise, devoid of detail. updates are sparse this week, having dedicated myself to an intensive study of french wine's effect on altitude sickness. preliminary results: inconclusive, but delightfully so. allons-y, mes amis and happy let's circle back season, xx c Staking $HYPE is now live on mainnet. Cambria had a successful mint on Ronin and there's a ton of growing excitement for user-owned gameplay. Zerebro announced it’s agent platform Zentients, and here's a recap of their year. In the lead up to Berachain launching Royco, Boyco pre-deposit vaults have amassed almost half a billion USD. Wayfinder rolled out phase 1 and are seeing great signup numbers. Winners stay winning i.e. ai16z, virtual, zerebro, arc are continuing to get the bid as AI infra outperforms agents and memecoins. Telegram rolled out a feature to turn digital gifts into NFTs. There's now a curated list of AI agent frameworks, launchpads, tools, tutorials, and resources. Smac dropped a great overview of how 2025 might shape up. Key takeaway: The incoming administration's policies on immigration and tariffs add uncertainty to the economic outlook, while key indicators to watch include the performance of semiconductors relative to the broader market and the strength of the US dollar, both of which could signal shifts in market sentiment and economic conditions. David Phelps took a fresh look at Joel Monegro’s 2016 "Fat Protocol Thesis," which basically predicted that protocols (chains) would capture way more value than the apps built on top of them. The idea was simple: apps drive users to chains, which then boosts the value of the protocol tokens, much like a digital nation-state’s currency. For years, this theory seemed spot-on, as protocols raked in sky-high valuations while apps struggled. But Phelps argues the obsession with protocols has gone off the rails, creating a market where chains are treated like untouchable idols, even when they don’t actually do much. The Fat App Thesis Why the upside is in apps https://davidphelps.substack.com Fast forward to 2024, and apps are making a comeback. Projects like Polymarket, pump dot fun, Hyperliquid are proving they can deliver real value by offering new user experiences that don’t rely on token speculation. Phelps calls this the “Fat App Thesis,” flipping the old narrative on its head. Instead of protocols driving value, it’s the apps that are pulling users in, and protocols are becoming increasingly interchangeable. The game has shifted: apps are where the magic is happening, while chains are just the rails they run on. Phelps doesn’t think protocols are doomed—far from it. But he’s clear that the future belongs to apps that can show users something new and exciting. The days of betting big on protocols just because they’re protocols might be over. If crypto wants to really grow, it’s time to back the apps that are driving the action and rethink how value is built in the ecosystem. apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps 2024 saw two generational changes in crypto: 1. the most hyped projects were, for the first time, apps 2. the most hyped protocols were the ones with novel ways to support apps for the first time in crypto history, we've moved from an infra cycle to an app cycle few Jez’s guide, Oldcoin Bad, Newcoin Good, frames crypto as a massive multiplayer online game (MMO), complete with health, levels, online friends, pvp, pve, a town square, an economy. The piece dives into the unwritten rules of crypto investing, arguing that success often hinges on finding the right group to grind with, building real expertise in a niche, and avoiding common pitfalls like over-trading or tilting. Jez highlights the importance of collaboration, suggesting that joining a high-trust chat with ethical, resilient grinders can supercharge your journey. The guide also offers practical advice for picking a strategy that suits your temperament. Whether you’re a "trench warrior" chasing shitcoins, a "good new thing hunter" spotting underpriced gems, or a "stable farmer" playing it safe, the key is to develop an edge that scales. Jez emphasizes the shift in crypto from old coins to new narratives, where fresh tokens with strong fundamentals and flywheel effects tend to outperform legacy plays. The overarching message is clear: treat crypto like a game, but play smart. Find your people, and always stay adaptable as the meta evolves. Overheard on Crypto Twitter How to think about "founder bets" in crypto. The edges are NGMI. The sweet spot is category and product specific. i nominate this for the funniest crypto clip of 2024 another angel in bushwick lost its wings Oh…. ? Looks like @ai16zdao has formally announced plans to launch an Agent Infra Ecosystem… … with agentic value being driven back to their native token $ai16z Highlights: 1. Core focus of platform will be to enable agent swarms. This is key to unlocking the next… L1/L2 leaders who promote every single project in their ecosystem, good and bad, end up alienating the good and attracting the bad Quality over quantity, always The Cognition Stack for AI-native Companies & Why Sales, Support, & Social Are Converging Let's imagine the future construct of "companies," where a new cognition-based stack of technology transforms organizational design and peoples roles at work. https://www.implications.com