Why Santi Is Launching An L1 | Weekly Roundup

In this episode, Santi unveils his ambitious plan to launch "inversion," a new Layer 1 blockchain built on Avalanche. He discusses his strategy to revolutionize customer acquisition by onboarding millions of users through mobile network operators (MVNOs). The conversation delves into the technical advantages of a sovereign blockchain, innovative tokenomics designed for permanent capital, and the future of equity tokenization, offering profound implications for the technology, AI, and semiconductor industries.

Executive Summary:

Santi, an experienced investor and blockchain innovator, shares his vision for "inversion," a purpose-built Layer 1 blockchain aimed at solving crypto’s biggest go-to-market challenges. His strategic focus on integrating traditional businesses like MVNOs with crypto services positions inversion as a potential game-changer in user onboarding and blockchain adoption.

Launching a New Layer 1 Blockchain

• Sovereignty and Customization: Building inversion as an L1 allows complete control over block space, enabling tailored parameters and validator sets to align with strategic goals.
• Avoiding Value Leakage: By operating independently, inversion aims to capture economic value without being diluted by competing activities on other chains.
• Technical Flexibility: Leveraging Avalanche’s robust infrastructure, inversion benefits from high performance and interoperability without the constraints of existing L1s.

“Having our own chain lets us purposefully build infrastructure that is tailor-made for our strategy.”

Analysis:

Launching a proprietary L1 provides inversion with the flexibility to implement specific optimizations essential for scaling and sustaining user growth. For investors, this approach minimizes dependency risks associated with third-party chains and enhances potential value capture.

Customer Acquisition Through MVNOs

• Massive User Onboarding: Targeting the acquisition of 100-500 million users by partnering with MVNOs to integrate crypto services seamlessly.
• Enhanced ARPO: Transforming MVNOs by offering stablecoins and banking services directly through mobile plans, increasing the average revenue per user.
• Strategic Market Penetration: Focusing on regions like Latin America, where MVNOs operate on lower multiples, provides cost-effective scaling opportunities.

“Mobile network carriers offer the best distribution to transform with crypto rails and activate a vast user base.”

Analysis:

By leveraging existing mobile infrastructures, inversion can rapidly scale its user base, creating a robust economic activity on-chain. This strategy offers substantial growth potential, making inversion an attractive investment with scalable revenue streams.

Innovative Tokenomics for Permanent Capital

• Elastic Supply Model: Unlike fixed supply tokens, inversion’s token supply will adjust based on demand, ensuring utility-driven value.
• Industrial Yield Farming: Tokens will reward capital providers involved in acquiring and integrating businesses, promoting sustained engagement.
• Governance and Alignment: Thoughtfully designed tokenomics aim to align the interests of users, investors, and the platform, fostering a cohesive ecosystem.

“The token is essential to reward capital providers, driving industrial-scale yield farming.”

Analysis:

Inversion’s dynamic tokenomics model addresses traditional issues of value capture and alignment, positioning the token as a cornerstone for long-term sustainability and growth. This approach appeals to investors seeking both utility and value appreciation.

Tokenizing Equity: The Future of Capital Markets

• Seamless Conversion: Vision to convert traditional equity structures into tokenized formats, enhancing liquidity and accessibility.
• Market Integrity: Establishing standardized on-chain disclosures and registries to ensure transparency and fairness akin to NASDAQ.
• Economic Alignment: Integrating tokenomics with equity to ensure strong alignment between company growth and token value.

“In a world where everything is on-chain, tokenizing equity could become the new standard for capital markets.”

Analysis:

Tokenizing equity represents a transformative shift in how companies raise and manage capital, offering increased liquidity and reduced friction. For investors, this innovation opens new avenues for participation and value generation in capital markets.

Key Takeaways:

• Purpose-Built L1 Advantage: Building inversion as a sovereign Layer 1 enables tailored infrastructure and maximizes value capture, presenting a unique investment opportunity.
• Scalable Acquisition Strategy: Leveraging MVNOs for user onboarding offers a scalable and cost-effective pathway to mass adoption, driving sustained economic activity on inversion.
• Revolutionary Tokenomics: Elastic supply and industrial yield farming create a robust and aligned ecosystem, ensuring long-term sustainability and investor value.

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