Alliance DAO co-founders: The fee/revenue ratio is an objective indicator for assessing the L1 moat.

Odaily News Alliance DAO co-founder QwQiao stated in a post on the X platform that the fees/revenue ratio is an objective indicator for assessing the L1 moat, while other indicators are less objective. If a project has a solid competitive advantage and operates in a growing market, it should gain more revenue over time. Conversely, if there is no moat, it will either lose market share or must maintain market share through price wars, both of which will ultimately lead to fees remaining constant or declining over the long term. It is important to note that a project without a moat does not mean it has no value; it may be delivering value to customers rather than retaining it for itself. QwQiao previously pointed out that the L1 track lacks a moat, is easily commoditized, and struggles to capture meaningful long-term value. He believes that betting on the Application Layer may be a more certain direction and stated that all his current holdings possess long-term competitive advantages and are in rapidly growing fields.