Key Highlights
- QwQiao argues that main L1 networks and tokens lack lasting aggressive benefits, also called a moat, which makes it susceptible
- He believes that the primary drawback is that it’s now too simple for customers and builders to modify between totally different blockchains, which pulls down the long-term worth of their tokens
- He proposed an answer, saying that blockchains ought to construct apps and companies immediately on their networks
On November 27, QwQiao, a companion on the Alliance DAO, shared a tweet through which he raised questions concerning the long-term worth of L1 tokens.
(Supply: QwQiao on X)
Within the newest put up on X, he acknowledged that he has a “onerous time convincing” to carry Layer 1 (L1) blockchain tokens for the long run. His concern was not about their present excessive costs. As an alternative, he questioned their very core construction by stating that L1 networks would not have a “moat.”
With out this much-needed safety, he believes that these infrastructure chains will turn out to be easy commodities, like electrical energy or water. Attributable to this, it is going to be unable to seize main worth over time.
L1 Tokens Have No Moat: QwQiao
The principle level of QwQiao’s argument could be very easy. He talked about that in in the present day’s crypto sector, there’s virtually no friction in stopping customers, builders, or capital locked on the blockchain from leaving one blockchain for one more.
In response to QwQiao, it solely takes a couple of minutes to maneuver digital belongings between totally different blockchains, because of superior bridge applied sciences like Wormhole and LayerZero. The whole quantity of those cross-chain transfers has already surpassed billions of {dollars} in 2025.
For builders, the method of transferring an utility can be simple. Most can switch their code throughout appropriate chains in a number of days. The rise of user-friendly growth instruments has even simplified the method of transferring to non-compatible networks.
Other than this, it simply takes weeks to launch a completely new blockchain or application-based rollup, not years, with the assistance of available kits.
This infrastructure makes the price of switching blockchains low compared to the problem of transferring an organization’s knowledge off a cloud service supplier like Amazon Net Companies (AWS).
Qw acknowledged that “its a no brainer to imagine within the exponential, however the perfect expression of this view is to guess on the app layer.”
QW is companion of Alliance DAO, which is a corporation often known as one of the profitable DAOs within the cryptocurrency house. It’s also often known as the DeFi Alliance. This group has helped launch main initiatives like Pump.enjoyable and Fantasy High.
It has raised $50 million within the fundraising spherical by top-tier funding companies like Sequoia and Paradigm.
Earlier than this, Qw has additionally raised earlier warnings in 2025 about dangers in retail ETFs, and AI tokens have confirmed right. Now, his views on L1 tokens have turn out to be a subject of debate among the many crypto group.
QwQiao Thinks Vertical Integration is a Resolution
QwQiao has additionally shared his resolution for the survival of L1 networks. He argues that they need to cease appearing as pure infrastructure and as a substitute absolutely transfer to personal the appliance layer constructed on high of them.
“the one manner so far as i can see for chains to strengthen their moat is to verticalize and personal the app layer. my notion is chains solana, base, and hyperliquid have come to this conclusion and r actively engaged on it. and ofc so do the up and coming corp chains like tempo,” he mentioned.
He talked about Base, an L2 community from Coinbase, for example. It’s shortly attracting a big consumer base of latest DeFi exercise. He additionally talked about Hyperliquid, which is a decentralised trade (DEX) constructed by itself high-performance Layer 1 blockchain.
