🔮 [Analysis] A primer on mining 2.0 - Erik Torenberg

Historically, VCs have viewed crypto investing through the lens of equity investment, but time has shown that value accrues to token holders, not the parent company. This led to VCs investing in SAFTs or amending partnership agreements to allow them to purchase tokens directly. But as layer two solutions emerge, where tokens may not be used, investors must find a new answer to the question of, how do you capture value in distributed networks? In this new world, you might have to earn your way by participating in the network, according to Erik Torenberg. Enter mining 2.0, or "generalized mining" as it is called by CoinFund. In this model, VCs won't just allocate capital but also serve as miners, stakers, validators, bonders, curators, dispute resolvers, nodes, hubs, watchers, routers for networks, etc. In this new world VC firms will need to be multidisciplinary and have a strong technical team that goes beyond simply analyzing investments. Additional skills a strong understanding of game theory and deep legal expertise will also be required. If teams are able to develop this talent or partner with firms that already have it, it could represent a fundamental shift where investors have direct influence on the protocols in which they are invested.