Santiago Santos: My New Crypto Investing Playbook

Why most crypto tokens fail to compound value — and how equity-style tokenomics, fee reinvestment, and product-focused teams could fix it.

Key Takeaways

Most tokens act like variable-coupon bonds: fees and staking reward holders but don’t compound enterprise value; redesign tokens to capture and reinvest protocol revenue.
Fee burns (EIP-1559) reduce supply but don’t substitute for reinvestment; buybacks or protocol-controlled allocation more directly align token value with on-chain cash flows.
Validator/staker rewards are operating costs to secure networks, not shareholder compounding; protocols need explicit mechanisms to allocate surplus toward growth or holders.
Infrastructure commoditizes as chains and tooling become easy to deploy; invest in businesses and apps that capture end-user value rather than raw infrastructure tokens.
Stablecoin and blockspace demand has surged, yet token prices (e.g., ETH) lag—investors prefer assets tied to real economic value and transparent reinvestment strategies.
Centralized, fast decision-making teams that reinvest fees and product revenue compound value faster; slow governance, MEV extraction, and tokenized governance hinder long-term growth.