Web3 Needs a New Metric: Total Value Unlocked (TVU)
For years, the crypto world has focused on Total Value Locked (TVL). This metric measures how much money is trapped in smart contracts. But TVL has a downside. It encourages fragmentation. Rather of working together, different blockchains operate in isolation. This limits growth adn user experience.
It’s time for a change. We need to shift our focus to Total Value Unlocked (TVU). TVU measures how much value is accessible and usable across all blockchains. This approach promotes interoperability. It allows users to access the best applications and data, no matter where they come from.
TVL has its problems. It incentivizes protocols to hoard assets. This creates silos and makes it hard to move money between chains. Developers and users struggle in a fragmented landscape. Layer 2 solutions and application-specific chains add to this issue.
- TVL focuses on isolated value.
- TVU emphasizes accessible value.
To achieve TVU, we need a universal verification system. This system would validate data and transactions across different blockchains. It would allow smart contracts and AI models to work seamlessly across chains. This would bring off-chain knowledge and on-chain state together.
TVU is the future of web3. It rewards developers who build interoperable systems. It guides ecosystem architects to design connected infrastructure. By focusing on TVU, we can move beyond isolated liquidity and create a truly interconnected ecosystem.
