Four outcomes are possible (in my opinion):
| Outcome | 1. Total Failure | 2. Yet Another Mediocre Shitcoin | 3. DC Cultural Victory | 4. The Fippening |
|---|---|---|---|---|
| What Happened? | Drivechain doesn’t work. The launch is a disaster. L2L is abandoned and hated by everyone. | DC works, but is unpopular. The coin’s value ends up somewhere between BCH and BSV. L2L is discredited, and its equity is worthless. | DC is very popular – BTC ends up activating it! BTC miners overthrow gatekeepers. L2L becomes the most-significant BTC company. But the hardfork-coin is worthless (it can’t compete with BTC). | DC is very popular – but BTC cannot activate it, due to cultural inertia. The hardfork-coin eventually dethrones BTC. |
| Coin Price | $0 | $250 | $0 | $100,000 |
| L2L Equity | $0 | $0 | $3.5 Billion | $3.5 Billion |
Outcome 1
Outcome 1 could happen in several ways:
- Drivechain is a bad idea.
- The hard fork is culturally un-salvageable.
- Sabotage / politics.
- Poor execution / hacked, etc.
…failure is always a possibility!
But I think drivechain is better (at least) than lightning. So it should manage to have some viability.
Outcome 2
On one hand, BCH and BSV are “more successful” than this project. They have their own communities – with their own celebrities. They have lots of users, and a dedicated fanbase.
On the other hand, there is ample evidence that both BCH and BSV were inferior ideas with bad execution. There is also evidence that hard forks have about 1-2 years to prove themselves. All of which would imply that a brand-new, better-thought-out hardfork would actually enter in at a price above BCH ($550).
Outcome 2 vs 3/4
What separates mediocrity (outcome 2), from a smash hit (outcomes 3/4)?
Here is a timeline of events that might make a smash hit more likely:
- [Now] In the 2nd financing round, attract a “famous” lead investor and/or media partners.
- [2nd Round] Attract a whole round of investors, who can help position the project for a successful launchpad round.
- [Pre-Launchpad] Prepare for launchpad round, by crafting new marketing materials, website, slide decks, ‘ad blitz’, conference sponsorships, etc.
- [Launchpad] The launchpad round is a big success – large cash infusion, validates the project. Many new investors, each with skin-in-the-game.
- [Pre-Hardfork] In the months leading up to the hardfork-event, hype builds. Everyone weighs in on this “controversial” issue, and it becomes big news.
- [Launch] We launch with a bunch of L2s already working. We do not make the same list of mistakes, as BCH.
- [Sudden Moment] Some kind of “particularly embarrassing moment” goes viral. (Such as: lightning debate, lightning demo, fee-pocalypse.) This causes laypeople to question the High Priests of Bitcoin.
Instead, if we launch with little-to-no fanfare, then a mediocre outcome (#2) is more likely.
Outcome 3 vs 4
If DC is a smash hit –ie, a good idea, popular with users– then the big question is: will we land in Outcome 3, or Outcome 4?
Here are the factors:
| Topic | Outcome 3 | Outcome 4 |
|---|---|---|
| Core Dysfunction | Bitcoin Core re-learns how to activate soft forks. Rationality and meritocracy reign supreme. | Core remains unable to activate any soft forks (even older softforks such as CTV, or APO). Politics and bureaucracy triumph. |
| Miner Independence | Miners (BTC) unilaterally activate DC, via CUSF – (Core be damned). | Miners (BTC) remain passive, neglectful, and uninterested in Bitcoin development. |
| Learning Heterogeneity | At some moment, everyone realizes at the same time, that Drivechain is a good idea. | People learn at different rates that DC is good. DC remains controversial, at all points in time (in part, because fast learners get impatient, and leave BTC). |
| Experimentation | Malcontent devs in BTC, continue to wait around for Core to support their projects. | Some malcontent devs in BTC, switch to the fork-coin. Projects (such as CTV, quantum-resistant signatures) can launch there, as L2s – admittedly, it isn’t Bitcoin, but at least it’s something! |
| Investor Activism | Investors perceive the fork-coin as risky, and avoid investing in it. | Activist investors note the low price of the fork-coin, and buy it up in bulk. They plan to promote the coin, and increase adoption. |
| Fun | The culture on the fork-coin is similar to BTC: toxic, self-important, paranoid, and stressful. | People start having fun on the fork-coin. |
| Community Mitosis | Users hold equal coins on both networks, adopting a “wait and see” attitude. | Users split their coins, and divest asymmetrically. Toxic-maxis sell the fork-coin for more BTC. (This will later discredit them, as their criticisms will appear financially motivated.) DC-supporters shift their portfolio to hold more fork-coin. (This gives them a vested interest in BTC-never-activating-DC.) |
| Degrowth | BTC “wakes up”, and switches from “de-growth” to “pro-growth” policies: soft forks, txn-fee maximization, sidechains, merged mining, privacy, pro-feature(s), pro-currency, pro-user, pro-miners, pro-adoption, and pro-innovation. | BTC pursues “degrowth” policies: ossification, txn-censorship, lightning, covenants, anti-privacy, store-of-value only, digital property, pet-rock, pro-Saylor, pro-OCEAN, pro-toxic-maxi, pro-establishment (Core, ChainCode, Blockstream). DC-on-BTC becomes culturally de-emphasized by gatekeepers. |
| Miner Blockade | Miners agree to support DC-on-BTC. | Miners decide to blockade DC activation on BTC. After all, both coins are Sha256d mined, so miners mostly indifferent to a flippening. However, at this point, miners may own more fork-coin than BTC. Or, they may prefer to now invest in (cheaper) pre-flippening fork-coin, and then keep that as the only DC-enabled sha256d coin, so as to themselves make a fortune on the flippening. |
| L2 Network Effects | If DC-on-BTC activates, then users are willing to quickly jump ship, back from fork-coin to BTC. | Users of fork-coin L2s, prefer to remain there – even if BTC activates DC. This could be due to network effects (ie, users prefer to remain on the forkcoin-L2s, purely because other users are there). |
If real-world events tend to resemble the far-right column, then we are more likely to end up in Outcome 4 (than #3).