Thanks for this thoughtful write up.

Agree that this is a multi-dimensional game, between (1) investors, (2) companies, and (3) ecosystem. One way to break down what ecosystem means is to try and model this out as a repeat game, where the investor desire to invest into this industry in Period_2, up to Period_n, matters to the company, or to company founders. Instead, what we got was short term opportunism, and subsequent punishment (since the correct Prisoner’s Dilemma multi-period solution is tit-for-tat).

The tough part is that utility tokens are more akin to debt (prepaid card) than equity, so from a papering perspective this will be a nightmare and unlikely to work on an industry level if most projects are underwater already.