AVAX - 528BTC

Expand If you're wondering why $1.5 billion worth of tokenized treasury bonds moved from Ethereum L1 to Apotos, Avalanche, and Polygon last week, look at the incentives. The BUIDL fees for these chains (and Solana) dropped from 50 basis points on Ethereum to 20 basis points—meaning a saving of $4.5 million annually on $1.5 billion in transactions. I don't have inside information, but it's highly likely that BlackRock's fee reduction wasn't due to Larry BlackRock's generosity. A simple speculation: Apotos, Polygon, Solana, and Avalanche paid BlackRock incentive fees in exchange for this privilege—otherwise, why are only these chains charging 20 basis points, while Optimism and Arbitrum charge 50 basis points? If you were Avalanche with substantial AVAX funding, would you pay BlackRock millions of dollars to rank second on the RWA treasury bond leaderboard? This marketing investment isn't the worst part. We're seeing Goodhard's Law again in the crypto space—when a metric becomes a target, it's no longer a good one. Risk-weighted assets (RWAs) lacking deep liquidity and connectivity to the underlying DeFi network are just vanity metrics—they don't actually need the underlying chain, and their moats are negligible. If the theory is correct, we can draw the following lessons: - RWAs not connected to the underlying chain are vanity metrics - Blockchains are spending on these metrics - "Spending" refers to token selling pressure There's good BD spending, and there's bad BD spending. I'm not sure if this is good spending.