Fat Protocol Thesis

Asset

The Fat Protocol Thesis posits that substantial value accrues to the foundational protocols—the base layers—of blockchain networks, rather than solely to applications built upon them. This valuation dynamic stems from the network effects inherent in decentralized systems, where protocol-level improvements directly benefit all downstream applications, creating a self-reinforcing cycle of adoption and value. Consequently, these protocols exhibit characteristics akin to foundational infrastructure assets, justifying higher multiples relative to application-layer tokens, and influencing capital allocation strategies within the crypto ecosystem.