Active Network Participation as an Investment Strategy

The merging of the roles of investor and miner has created an investment approach unique to decentralized networks

Summary

• Decentralized networks incentivize third parties to deploy services on their behalf in exchange for protocol-defined compensation. Examples of these services include security, transaction processing, lending, or providing computational resources like storage, computation, or transcoding.
• Investors that have acquired a stake of tokens early on in the life of a decentralized network are well equipped to provide core network services during its bootstrapping phase.
• By actively participating in networks, an investor can open or increase a position in a network at a potentially competitive cost basis, and increase the likelihood of network success.
• In some cases, active network participation is the only way to gain financial exposure to network growth.

Introduction

CoinFund recently announced the launch of Grassfed Network. Grassfed is an initiative that supports investment strategies involving active network participation. This announcement is the culmination of months of research and test…