Alliance DAO co-founder: Fee/revenue ratio is an objective indicator for assessing L1 competitive advantage.

Odaily Planet Daily reports that QwQiao, co-founder of Alliance DAO, stated in an article on the X platform that the fee/revenue ratio is an objective indicator for assessing an L1 moat. Other indicators are less objective. If a project has a solid competitive advantage and operates in a growing market, it should generate more revenue over time. Conversely, without a moat, a project will either lose market share or be forced to maintain it through price wars, both of which will ultimately lead to fees remaining constant or decreasing in the long term. It's important to note that the lack of a moat doesn't necessarily mean a project lacks value; it might simply mean that the value is delivered to customers rather than retained by the project itself.

QwQiao previously pointed out that the L1 track lacks a moat, is easily commoditized, and is difficult to capture meaningful long-term value. He believes that betting on the application layer may be a more certain direction, and said that his current assets all have long-term competitive advantages and are in the field of exponential growth.