Ethereum and Solana Protocols Face 'Disguised Unemployment' as Majority Fail to Generate Revenue
By
PaulHoule
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Summary
The article discusses the concept of 'disguised unemployment' in the context of smart contract blockchains like Ethereum and Solana, where a significant portion of decentralized protocols are not generating revenue. Drawing parallels to ghost cities, it highlights the inefficiency and capital expenditure loss in these digital ecosystems. Data from DeFiLlama reveals that 88% of Ethereum protocols and 75% of Solana protocols are not earning revenue, likening this to an on-chain version of disguised unemployment.
Key quotes
· 3 pulled'Disguised unemployment refers to a situation where a portion of the workforce appears to be employed, but isn't contributing to the economy's output.'
'Something similar can be said for the top smart contract blockchains, which hosts hundreds of decentralized protocols.'
'According to DeFiLlama, Ethereum is the...'
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