This week's research was a not so gentle reminder of just how much I don't know. The beauty of having a framework for your research is that these reminders are more invigorating than anything.
Earlier this week, I went down a rabbit hole of DAOs, tokenization, and Web 3.0. In my last post, I made a note to create an NFT collection on OpenSea in order to learn the process. That's taking a bit longer than expected. It's still on my list, but I didn't want it to hold up this post.
Back to DAOs, or Decentralized Autonomous Organizations. The most straightforward explanation I found comes from a Medium article written by 0xjim titled DAOs Are The Next Big Thing. "DAOs are programmable organizations of people." He continues, "DAOs are powerful because they create incentives and a sound framework for thousands of people to organize without the need for formal roles or hierarchy."
Something that I'm still wrapping my head around that is closely related to this new way of organizing is the role of our state identities. 0xjim explains, "For the first time ever, absolute strangers can coordinate hundreds of millions of dollars and build a product that serves millions of users without ever meeting in-person, signing a legal document, or honestly even knowing each otherβs names (many DAO members have pseudonyms like their Twitter handle or just their ETH address)."
I read a related piece (I forgot to bookmark the link unfortunately) that described a world where we have multiple pseudonyms online as many of us already do. The difference now is these pseudonymous identities can have a bank account, be part of a legal entity with multiple actors cooperating under a single mandate, and generate real value in the economy. In this scenario, I imagine it will not be uncommon for people to have multiple revenue streams under multiple identities. Could this be another nail in the coffin of the 40-hour workweek?
In my view, the most exciting piece of news this week came from Wyoming. As of July 1st, the state willΒ legally recognize DAOsΒ as a new type of LLC.Β This will be an interesting one to watch. I'm sure there will be all kinds of unintended consequences, but if Wyoming gets this right other states will follow.
There's so much more to research with DAOs. I'm going to continue to watch this space closely.
Switching gears a bit, I spent most of my research time this past week on psychedelics π.
This past year I developed an investment framework that I believe is straightforward enough for a novice like myself to build on for many years. I spend my time on just three themes: the future of money, the future of energy, and the future of well-being. Psychedelics falls under the third theme.
Within each theme, I have tried to articulate, in the clearest way possible, the problem. I also continue to add macro trends, as I find them, that contribute to the theme somehow.
For the theme of well-being, the problem is pretty straightforward. We have a massive mental health crisis in the United States. It's real bad, and it's getting worse. To make matters worse, our current healthcare system is not designed to respond to the problem at hand.
I researched two macro trends that contribute to this problem, and they have to do with our search for meaning.
π π We are the horse β In 1900, over 50,000 horses in the city of London were responsible for getting people where they needed to be. This system worked, but it was inefficient. Fifty thousand horses created a lot of manure all over the streets of London. The horseless carriage was an elegant solution to this problem, and over the following two decades, horses became obsolete as a means of transportation.
For the sake of comparison, there are more than 3.5 million truck drivers in the US, all of which need to eat, sleep, and use the bathroom.
This picture really struck me. Imagine being that truck driver carrying a payload designed to replace you.
From entry-level positions like retail to high-wage positions like finance and accounting, automation is making humans obsolete. We are the horse.
π π A crisis of faith β The graph below sort of says it all. Younger generations have far less conviction that a god exists. There are several contributing factors, but the point is this represents a massive shift in culture and our search for meaning as individuals.
I hypothesize that psychedelics may provide a pathway for many in society to reclaim what they've lost elsewhere in their lives. The increased amount of attention and investment in psychedelics seems to coincide with these contributing macro events. Below are two helpful charts that illustrate this well.
Credit to Azeem Azhar and the incredible amount of rich data he packs into his newsletters. His latest newsletter also helped me make the connection between religion and psychedelics.
Below are several other major recent events adding momentum to this space and bolstering my conviction in this trend as an investable opportunity.
Efficacy β Psychedelic spurs growth of neural connections lost in depression
Legalization in CA β California Senate Passes Psychedelic Decriminalization Bill
Legalization in TX βΒ Texas the Latest State to Legalize Psychedelic Medical Research
Legalization in CT βΒ Connecticut Governor Signs Psychedelic Reform Deal
Investor Interest β Defiance ETFs Launches $PSY, the First U.S.-listed ETF Focused on Psychedelics
This next week I am going to jump back into NFTs. I feel I just barely scratched the surface in my previous post, and I'd like to think some more on the questions I posed in that piece.
Recommended πthis week:
As I was researching DAOs and new ways of organizing people, I came across 1729.com. Absolutely brilliant incentive system built on learning and sharing knowledge. Everybody wins.