What Is Ethereum Worth? With Kevin Mills

In this deep dive episode, Kevin Mills from Triton Liquid Fund joins us to examine the fundamental value of Ethereum through multiple analytical frameworks. Building on John Pfeifer's influential 2017 paper, Kevin explores cash flow models, equation of exchange, and the internet bond theory to assess ETH's true value. The conversation challenges popular narratives around monetary premium and questions traditional valuation approaches in crypto markets. Essential listening for anyone interested in crypto asset valuation fundamentals. Read the paper: https://whatisethereumworth.com/ 🐦Follow our guests on Twitter: @__kfm__ 📝Quick notes & topics: • ETH cash flow valuation challenges • Value capture vs value creation • L2 impact on ETH economics • Monetary premium limitations • Application layer value capture • Protocol value extraction limits Timestamps: 00:00 Start 01:39 Kevin bio 04:26 Original paper overview 08:19 Valuation methods 11:51 Denominating in ETH 13:17 Issuance rate / cash flow 18:26 Equation of exchange 29:41 Internet bond 33:41 Working capital theory 37:16 Carrying cost of capital 41:18 Counter arguments: Ultra Sound Money 47:14 Premium block space 55:20 Bimetalic history 58:39 Likely outcomes 1:03:06 The utility path to zero 1:05:08 App layer thesis 1:09:11 RIP Fat Protocol Thesis 1:11:08 Value capture mechanisms 1:15:16 Solana's got the same problems 👋 The Gwart Show is sponsored by Ellipsis Labs. Ellipsis Labs is building Atlas, the blockchain purpose-built for verifiable finance. You may know of Ellipsis Labs by their first product Phoenix, a fully on-chain orderbook DEX that’s done over 50 billion dollars in unincentivized volume. They are one of the strongest teams I know in crypto. If you’re interested in working for a mission-driven company, Ellipsis Labs is hiring engineers passionate about crypto and finance to work on Atlas. You can learn more and apply on Ellipsis Labs’ Twitter “at Ellipsis_Labs”. Don’t forget to check out Atlas too, @atlasxyz on Twitter. Enjoy the show? Check out our website and newsletter by clicking here. Questions or want to sponsor? [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices