How do you determine the value of decentralized networks like Bitcoin, Ethereum, or Solana? It’s not as straightforward as traditional investments.Jon Charbonneau, general partner at crypto investment firm DBA, joins Unchained after writing a paper that dives deep into the complexities of valuing blockchain networks. He explains why applying traditional equity models to networks such as Bitcoin falls short, how tax inefficiencies in staking rewards impact valuations, and whether Layer 2 solutions like Optimism and Arbitrum are helping or hurting the long-term value of Layer 1 blockchains.Also, he looks at the big question—are these networks sustainable in the long run?Show highlights:What motivated Jon to write the paperWhat the main points of the paper areWhy tax inefficiencies in staking rewards are a critical factor in valuing decentralized networks and how they differ from traditional corporate taxesWhat makes valuing networks tricky, as Jon explains how proof-of-work vs. proof-of-stake systems differ from traditional equity modelsHow he thinks about valuing Layer 2s and whether they are parasitic to the L1Whether blockchains are sustainable in the long termVisit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.comThank you to our sponsors!PolkadotMantle’s FBTCGuestJon Charbonneau, co-founder and General Partner at DBAL1 & L2 Token Value CaptureLinksPrevious coverage of Unchained on this topic:How to Figure Out Whether a Crypto Token Is Worth Its Trading PriceETH Is Down Bad, While Layer 2s Are Ripping. Are L2s Parasitic to Ethereum?Are Layer 2s Parasitic to Ethereum and ETH as an Asset?Are L2s ‘Parasitic’? Analysis Shows Ethereum Only Gets a Tiny Percentage of FeesEther-Bitcoin Ratio Is at Multi-Year Lows, But It’s Just ‘Temporary’ and an ‘Opportunity’Timestamps:  Learn more about your ad choices. Visit megaphone.fm/adchoices