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DeFi Resources - DegenPleb
The hierarchy of value capture is the axis along which protocols and the tokenomic mechanisms they employ can be ordered.
Protocols face a challenge in navigating this hierarchy when designing their value capture: mechanisms in the hierarchy of value capture can be ordered simultaneously as ascending in value capture, and descending in defensibility.
In essence, the more value a protocol captures, the less defensible it is.
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DeFi Resources - DegenPleb