The advantage of a 2nd layer token (like PEPE for example) is that they can be traded on the decentralized hive-engine for whatever people are willing to pay. The disadvantage is fees between hive and swap.hive when moving funds on or off hive-engine, slippage losses, fees to set up a token and to add features to it like staking and liquidity pools, and reliance on node operators.

Since we want VOLTs to be stable with their peg to HBD, we don't need order books or liquidity pools. So they will just be numbers in a database. They won't be decentralized but we also won't rely on node operators or blockchains.

VOLTs can be staked or Powered Up, and currently earn 15% APR paid weekly when Powered Up.

Powered Uo VOLTs get GOV token airdrops which are not stablecoins but can be a sort of "value capture token". GOVs will be tradable on order books eventually, and can be used to Vote on proposals with 1 vote per GOV.

Info on the tokens given above will probably apply to PG as well as RR.

Here's some thoughts by AI on Value Capture Tokens, for reference, and as a bookmark to me. The article in footnote 1 is very good and mentions Bitcoin and Steem.

Value capture tokens refer to mechanisms that allow a system or network to capture and retain value. Here are some key points about them:

1. What is Value?

   • Value is created through work, which can be mechanical, creative, or anything in between.
   • Eric Beinhocker defines economic value creation based on three criteria:
     • Irreversibility: Work must be thermodynamically irreversible.
     • Entropy Reduction: It should reduce local entropy within its ecosystem while increasing global entropy.
     • Fit for Human Purposes: The work should produce artifacts or actions that serve human needs.

2. Value Capture: The Glue of P/E Ratios

   • Value capture bridges the gap between profits and revenue.
   • It's the link that connects a business's ability to create value (through work) with its ability to capture some of that value as profit.
   • Different businesses capture value in various ways, such as through massive scale and thin margins (production advantage) or high pricing power towards consumers (large margins).

3. Token Models and Value Capture

   • Tokens play a crucial role in capturing value within decentralized systems.
   • They allow users and groups to define what they value, rather than having it predefined for them.
   • By quantifying valued resources, tokens enable efficient value exchange and capture.

4. Examples of Effective Value Capture Tokens

   • Layer-1 smart contract platform tokens (e.g., $ETH on Ethereum) act as the primary currency for transaction processing.
   • Users and developers must purchase these tokens to use the network, ensuring value capture.

In summary, value capture tokens are essential for aligning incentives, promoting efficiency, and sustaining decentralized ecosystems. They represent a fundamental shift in how we think about value creation and capture in the digital age .

Source: Conversation with Copilot, 6/22/2024
(1) On the immaturity of tokenized value capture mechanisms. https://medium.com/paratii/on-the-immaturity-of-tokenized-value-capture-mechanisms-1fde33f2bc8e.
(2) Beyond Network Effects: Why Tokens are The Real Value Capture. https://medium.com/@nickgardner0651/beyond-network-effects-why-tokens-are-the-real-value-capture-c91df92f3f04.
(3) Tokenomics 101: Value Capture – Eat Sleep Crypto. https://eatsleepcrypto.com/tokenomic-value-capture/.