EntryPoint within the AEZ - An open letter to the Cosmos Hub community


EntryPoint provides benchmark and thematic indexes, allowing for non-custodial passive diversification backed by fully-collateralised index tokens. The project’s vision is to join the ATOM Economic Zone (AEZ) as a community-driven, decentralised, and self-governing public infrastructure with the aim of facilitating secure and easy onboarding for retail and institutional investors into the AEZ. Governance, including token whitelisting and index definition, is transparent, democratic, and decided by the protocol’s token holders. Through partnerships and synergies within the AEZ, EntryPoint aims to onboard new users, improve liquidity, increase the TVL, and strengthen the appeal of the Cosmos ecosystem as a whole.

EntryPoint’s Ask:

  • Proposal for a long-term partnership with Cosmos Hub, involving a $2.5 million investment in EntryPoint

Cosmos Hub’s Return:

  • 10% of EntryPoint’s token, $ENTRY (non-inflationary, fixed supply)
  • Significant influence over EntryPoint governance and treasury spending
  • 100% gas fees paid in ATOM

Open Letter

Dear Cosmos Hub community,

We, the core contributors of EntryPoint, write this open letter to start a conversation about the EntryPoint protocol and our vision to onboard it as a consumer chain of the Cosmos Hub. This letter is not an official proposal in itself, but aims to involve the community early on and gather feedback towards the upcoming official proposal.

EntryPoint is a sovereign, open-source, and permissionless Cosmos SDK application specific blockchain that provides benchmark indexes for the token economy, so-called index vaults, with fully-collateralised index tokens and non-custodial portfolio management. Our vision is to develop EntryPoint as a community-driven, decentralised, self-governing and self-sufficient public infrastructure project. The ongoing mission of EntryPoint is to heed the call of retail investors by offering a safer entry point into crypto along with a seamless user experience. By leveraging the core Cosmos technology developed over the past years, including IBC, ICQ and ICA, EntryPoint automatically trades with 3rd party DEXes, within the Cosmos ecosystem and beyond, to deliver fully-collateralised index tokens to its users.

EntryPoint’s index definition process and token curation structures are designed to be transparent, democratic, and community-driven. The management of Index Vaults, carefully curated sets of tokens that allow users to access passive, diversified investment portfolios in the new token economy, is a collaborative effort, with $ENTRY token holders collectively deciding on token whitelisting and new vault index introductions initially based on a one-token, one-vote principle. We will look to onboard experienced community members to an Index Vault Working Group to support the community in this effort, be it for backtesting, research or index proposals.

We believe that with the right foundational index management processes and open transparent governance structures that evolve over time, EntryPoint is well suited to address the needs of retail and institutional investors alike by embarking on a mission to provide this user experience in a regulated manner.

The implementation of Replicated Security marked a new chapter for the Hub and the AEZ, towards a vision of a thriving ecosystem of interconnected app-chains and decentralised communities, with the Cosmos Hub at the heart of the internet of blockchains. Given the Hub’s prominence across the interchain, we believe the Cosmos Hub community should be a key stakeholder in the definition of the benchmark indexes of the internet of blockchains and the provision of an essential financial primitive in any mature economy. In light of this, we propose a long-term ICS partnership with full commitment to the AEZ and we look forward to hearing what you think about this proposal.

Problem Definition

Witnessing the first consumer chains in Neutron and Stride being onboarded onto the Hub is an exciting and big milestone for the Cosmos community. Yet, as of today, the Cosmos vision requires both new users and far greater amounts of liquidity if it is to be realised. To achieve this, and ensure the AEZ thrives, it’s vital to understand and address the concerns of those deterred by the crypto industry’s perceived complexity and risk. Retail has a hard time keeping up and figuring out the tech, as do institutional investors who, in addition, require more stringent risk frameworks and a regulated point of entry.

Value Proposition

Passive benchmark indexes such as the S&P 500 have served a vital onboarding role in TradFi markets, and EntryPoint’s ambition is to bring the same rigour, best practices and simplicity to crypto; enabling users to access passive, broad market diversification, with minimal risk and opportunity cost.

Echoing the sentiments of Larry Fink, CEO of Blackrock, the world is indeed shifting towards passive investing, and this is a trend that EntryPoint is poised to embrace and enhance within the crypto space. He had this to say at the Dealbook Summit in November 2022:

Look, we’re in a world where people are moving more and more towards passive investing, and when you look at the growth of ETFs, that is the ultimate expression of passive investing…

So, I think ETFs will become more and more important, but they’re going to change. They’re going to become more actively managed. They’re going to become more customised. And they’re going to be more integrated with technology. And that’s where BlackRock is investing in its future.

This is precisely the trend that EntryPoint is poised to capitalise on. As the world moves towards passive investing, on-chain indexes and index tokens are emerging as the future of this investment strategy. Index tokens, in particular, offer users the ability to dictate their own risk tolerance, either passively holding or deploying them across different DeFi opportunities. They stimulate growth and diversification in the crypto ecosystem, holding significant potential in money markets by providing diversified, risk-adjusted exposure to tokenised assets. Recognised as valuable crypto collateral, they are suitable for DeFi lending and borrowing, assuring lenders of the collateral’s stability and liquidity. Furthermore, index tokens, with their broad market representation and liquidity, are an appealing choice for liquidity providers who can utilise them as base assets in AMMs helping to reduce the risks of impermanent loss while also allowing LPs to limit their exposure to the specific asset they aim to provide liquidity for (in respect to the overall crypto-market average).

The potential number and types of indexes is significant, but we believe that the most important index to focus on initially is one that captures as much of the broad crypto market as possible, similar to the S&P 500 or Total World Index in TradFi. Such an index would satisfy the needs of most users looking to invest in crypto. At the same time, providing such an index within the AEZ will significantly increase the inflow of liquidity from other ecosystems such as Ethereum, Avalanche and Polkadot, while showcasing the inherently cross-chain architecture envisioned in the Cosmos whitepaper.

To help garner trust of inexperienced crypto users and institutions, EntryPoint will seek to mimic and improve on the index concept and established best practices of TradFi, particularly with regards to risk management and through transparent, decentralised on-chain governance. This, in turn, puts it in a unique position to engage with regulators as it embarks on a mission to become a regulated on-chain financial service provider. A regulated approach to enable institutional inflows of capital also serves to address the need for liquidity in the Cosmos ecosystem. Based on ongoing conversations with fund managers, a simpler, regulated onboarding and more mature DeFi processes around risk management is critical to the future success of the AEZ and broader crypto ecosystem.

Altogether, this will allow EntryPoint to serve as a catalyst within the AEZ: facilitating retail and institutional onboarding, driving liquidity, boosting TVL secured by the Hub, while enhancing Cosmos’ visibility among new DeFi and Web3 users.

EntryPoint: A Product of the Cosmos Hub

The vision of an internet of blockchains, managed as public infrastructure by decentralised communities, has formed the basis for EntryPoint’s launch from the start. With the Cosmos Hub being the core facilitator of cross-chain trade via IBC at the centre of the internet of blockchains, we believe it would make a lot of sense to have the Hub and its community be the main economic and security partner to EntryPoint, and as a key stakeholder help define the benchmark indexes that can set new standards across the industry.

As such, EntryPoint can serve as a specific use-case from which we can start to understand how to move away from one-token one-vote, to bespoke governance structures necessary for the development of specific products and app-chains. The Cosmos Hub community has demonstrated its ability to reach social consensus on difficult and controversial topics. Thus, the Hub is well-positioned to play a key role in the development of these decentralised governance structures; to set a precedent for (self-)regulated digital public infrastructure and decentralised service providers.

Replicated Security provides the necessary security that risk-minimised benchmark indexes demand. By being a sovereign IBC-enabled Cosmos SDK chain, EntryPoint benefits from technical independence and leading cross-chain capabilities, crucial for the seamless provision of index vaults composed of tokens from across the internet of blockchains. Leveraging these benefits, EntryPoint is able to provide a seamless user experience similar to that of TradFi, alleviating users of the burdensome task of constructing and managing their own token portfolios.

EntryPoint and the Cosmos Hub: a Strategic Alliance and Long-term Partnership

@Lexa spoke of a long-term relationship between the Hub and its consumer chains, “an investment that may not pay off until later”, and no wonder. Innovation is rapid, regulation looms large, and the future remains uncertain. Nor is everything around Replicated Security crystal clear. At the end of the day, code is open-source and chains are well-validated, sovereign and free to choose their own governance and security.

Given this, we propose a strategic, long-term partnership, wherein the Cosmos Hub invests $2.5 million into EntryPoint (approximately 268,817 ATOM as of 2023/06/30, with the spot price of ATOM being $9.30, and the Hub’s current earnings standing at 300,000 ATOM per month) in exchange for a 10% allocation of EntryPoint’s non-inflationary token, $ENTRY. These funds will be channelled towards advancing EntryPoint’s development, from a technical, business and regulatory perspective. The specifics of how this proposed partnership will be executed will be explored in detail, subsequent to gaining an understanding of the community’s views on our proposal. At present, we suggest using Timewave-developed infrastructure to facilitate the proposed partnership.

While groundbreaking, we believe a blockchain to blockchain investment provides much greater alignment than a VC to blockchain relationship ever could, and lays the foundation for an economic relationship that extends beyond a mere service agreement. We’re inviting the Hub to have a seat at “the board of directors” of EntryPoint, so to speak, as the early lead investor of this fundraising round, and join in a durable alliance that together can help realise the AEZ vision, irrespective of future uncertainties. This partnership would grant the Hub significant influence in governance, including how EntryPoint’s treasury should be spent. Ideally, we see treasury spending as being a matter left in the hands of governance, but can also envision a situation in which part of this revenue is earmarked for Replicated Security payments from the start.

Likewise, the Cosmos community would have a vital role to play, both as contributors of the EntryDAO and as community members overseeing the development of the protocol. Related to this, the 33,500 ATOM previously allocated towards the EntryPoint project as part of proposal 72 will, in addition, be used to onboard relevant, specialised expertise to the EntryDAO working groups and propel the vision that EntryPoint has put forward in its constitution and governance documentation.

Revenue Model

The management of EntryPoint’s benchmark indexes by its community sets the foundation for clear revenue streams not linked to transaction fees or token inflation. In fact, the various participation fees of index vaults, such as streaming fees, entry and exit fees, accrue directly to the protocol’s community treasury, which $ENTRY token holders directly manage, including the Cosmos Hub. In this manner, EntryPoint’s initial revenue model is directly and clearly linked to the platform’s Total Value Locked (TVL). As revenue should first and foremost be used to drive the project forward, this may come to include paying for ICS fees. Future adjustments may be made based on on-chain governance proposals, in which the Cosmos Hub would play a major role.

In addition, 100% of gas fees accrued on EntryPoint, denominated in ATOM, will go to the Cosmos Hub. As EntryPoint grows and market conditions evolve, potential additional revenue streams may be introduced, pending governance approval. These could include partnerships with synergistic protocols, and refinements to traditional finance (TradFi) revenue models. In the future, as on-chain activity increases, MEV, especially cross-chain MEV, could also become another important source of revenue. For reference, a variety of potential scenarios and future revenue projections are illustrated below.


Please note that the current version of the EntryPoint whitepaper does not include a dedicated section on tokenomics; however, upon ratification of this proposal, a pull request here will be enacted to integrate a comprehensive tokenomics section into the whitepaper to ensure complete transparency and understanding of the project’s economic model. At this stage, we’re open to feedback


EntryPoint’s tokenomics model involves a fixed-supply token, called $ENTRY, with a vesting schedule to promote alignment, managing token circulating supply at an early stage and balancing voting power. Under a Cosmos Hub partnership, the following $ENTRY token distribution is proposed accordingly:

  • 10% - Cosmos Hub (lead partner)
  • 10% - Other partners
  • 20% - Core contributors
    • The core contributors from Simply Staking, as well as advisors working on EntryPoint, are dedicated to leverage the latest Cosmos technology and provide the AEZ with a product that can help bring new liquidity into the ecosystem, targeting users who require regulated products to feel safe participating in DeFi. Over the coming years, the team will also be able to focus on important infrastructural, technical and governance related to the evolution of the AEZ, e.g. IBC, ICQ, ICA, cross-chain voting and DAO management.
  • 10% - EntryPoint Foundation
  • 50% - Community Treasury
    • The exact distribution of these funds will be decided by the governing community, which will have an impact on voting power as more tokens are distributed.

You can find a more elaborative version of the proposed, but yet to be finalised, tokenomics here.

Final words

First of all, we want to thank you for your involvement. We deeply value the Hub community’s support as we navigate this path together, and are excited to see what we can achieve together. The yield of the discussions here will be taken onboard and considered in preparation for EntryPoint’s forthcoming proposal, which you can expect to see in 10 days.

If you’re interested in learning more about EntryPoint, you can check out our website, read our whitepaper, explore our docs, or visit our blog.

If you want to get in touch or start contributing, we encourage you to join our Discord, or contact us on either Twitter or Telegram. We’re always happy to chat and answer any questions you might have.

EntryPoint’s core contributors wish to acknowledge and thank Stride, Neutron, Skip protocol, Imperator, SG1, ZKV, stake fish, notional DAO, Informal, ICF, Chorus one, Everstake, cosmostation, Chainlayer, Lexa (Hypha), Timewave and CryptoCito for their valuable feedback. Your input has been greatly appreciated.

DISCLAIMER This letter does not constitute investment advice, nor any promises, offers, guarantees, representations or warranties, and includes speculative forward-looking statements about potential post-launch capabilities of EntryPoint.


Hey Matt,

Appreciate the thorough proposal. I definitely think there is a large TAM for thematic tokenized index funds that could represent both offchain and onchain assets, but the market has shown that there is zero appetite for this kind of product today.

There are countless examples, but Index Co-op is probably the most known. Even on Ethereum, where an overwhelming majority of the onchain liquidity is, they are sitting at a paltry $60M TVL today. Why should someone invest in a passive fund when crypto is still very much in its “liquid VCing” stage? Index funds make sense in a more established market, but we are still probably years away from this taking off until it makes sense from a risk-adjusted perspective. If thematic indexes haven’t taken off on Ethereum, why would they take off on Cosmos, where unfortunately, there are less network effects and institutional-grade infrastructure in place today?

I also am struggling to see why app-specific blockspace is required for this kind of product. Would this not be best launched on something like Noble, which will likely be the real entry point into the Cosmos as a fiat onramp into the eco?

That said, I think this is still a worthwhile idea to explore. When the market is ready for these kinds of products, I do think it could be very fruitful! I just don’t think it makes sense to become a consumer chain today, and I would encourage the team to consider working in collaboration with Noble.


Sounds like an interesting idea, if valued at such a high valuation what is the need for a token? I agree with cap as well. If you are going to launch, the AEZ is too infant to onboard a project like Entrypoint. I also think there’s no demand at the moment or product market fit since these already exist in IBCX which has a small bid, as well as Quasar that has low TVL. It’s still a micro market, I don’t think it would be capital efficient for the hub to support a product that doesn’t have demand yet. I would encourage going the Noble route! Best of luck, just my opinion


Joining ATOM Accelerator or Noble or Neutron is the best choice for EntryPoint.

Thank you for your reply. It is true that there are products on other ecosystems that have not seen massive adoption yet, but there many are reasons for this including the fact that the crypto degen DeFi market prefers extremely risky products. Market demands change as the space matures and targeting degen users is not enough in the long term. If such products (ETFs) are so important in traditional markets, it is reasonable to expect that if new users are to onboard into crypto they will demand the same type of products.

In fact, if we are able to build benchmark indexes e.g. a Crypto20 index similar to the S&P500, we would have solved a major problem for new users who would be able to easily participate in the market while knowing that their investment (Index token) will still be composed of the top 20 crypto assets by marketcap 10, 20 years from now. This is currently a major issue for long-term investors looking to diversify their portfolio to include crypto. A Crypto20 benchmark index token is the ultimate HODL token, since it represents the value of the entire (95% +) crypto market, and seamlessly (from a user’s POV) adapts to the market over time.

On top of that, I believe the Cosmos ecosystem is the ideal place to develop such indexes. Cosmos was built around the vision of interconnected blockchains. The interconnecting technology that has been built enables us to think in terms of tokens from across multiple blockchain ecosystems, rather than focusing on the tokens existing only in our ecosystem. Offering a product like the Crypto20 index within the AEZ would create the foundation for bringing liquidity from other chains into the AEZ. Once this liquidity is within the AEZ, it can be integrated as a financial primitive, making for better lending collateral, better AMM liquidity provision collateral, better IST vault collateral etc.

We should be building these products now, in expectation for demand, not later once demand is there and being captured by other projects who had the foresight to anticipate the demand.

Regarding the decision for developing an app-specific blockchain, this has been the central vision of the Cosmos ecosystem since the very beginning. Building governance-based products on a 3rd party blockchain would be less than ideal, requiring the project to lose its sovereignty and relinquish control over its tech stack. This is the opposite of the vision of an internet of blockchains we have been striving towards, especially given the governance capabilities of the Cosmos SDK and the opportunities it opens up.


Thank you for your reply.

The token is required as a governance token of the system, used to make decisions around the Indexes to be launched on the blockchain, treasury management etc. The token is also a tool to align with the key stakeholders of the project over the years, so as not to only rely on the Cosmos Hub community. Such stakeholders would bring expertise in various required areas such as finance, asset management, liquidity etc.

Products like IBCX and the initial Quasar vaults focus on the offering solutions for Cosmos ecosystem indexes, but without the rigour required for developing benchmark indexes. Quasar, AFAIK, also aims to focus on providing a marketplace for programmable strategies, (more like active fund management) which is very different from focusing specifically on long-term passive instruments (more like passive index funds). The governance structures and the technological stacks required vary greatly.

I am sure there is a market for both, as there is a market for both Index Funds and active products in TradFi. But the product delivering benchmark Index Funds within the Cosmos ecosystem should definitely be within the AEZ with the Cosmos Hub having a lead role in the definition of these indexes.


I see where you’re coming from, but I think there’s a bit more to consider. You’re using Index Coop for comparison, but they’re not exactly parallels, the Coop being an Ethereum project. High gas costs and limited interoperability can be a real barrier to growth. Let’s also not forget that high tx fees can make managing/trading within indexes costly, especially when it comes to rebalancing, which is a key part of managing an index. High fees eats into the returns and makes it less attractive to investors. Plus, Index Coop has had its fair share of management issues, launching too many products without a clear use-case or target audience, and racking up unnecessary costs (seem to be pivoting now tho).

Notwithstanding Cosmos’s tech superiority more generally, as more chains connect to IBC (Polkadot just done, ETH, NEAR, AVAX and more coming), a consumer chain index protocol would be in a much better position to fill the current gap in the market for a broad diversified index

As for your point about Noble, while possibly valid, doesn’t change the fact that a project with public infrastructure ambitions should ideally operate as a sovereign chain, as it provides the necessary independence.

Re crypto being in its “liquid VCing” stage, true. But most non-tech people, at least the once i know, do not (wish to) actively manage their portfolio, which is not a straightforward effort for them anyway. They buy for the long-term and would be happy to buy a broad index with a single click instead of the current ux.

I also think its worth noting the project’s ambition to pursue a regulated approach, which has the potential to open a lot of doors of liquidity…

AEZ is a big vision, and it’s going to take time to build. I think it’s worth remembering that visions don’t realize themselves. They require investment, time, and effort to develop. Most important thing now, imo, is to onboard consumer chains that has the potential to generate synergies with each other. With new DEXs, liquid staking, possibly money markets coming to the AEZ, there can clearly be synergies with an index token, eg as collateral


I’m going to be blunt, so apologies in advance. I don’t see the point in adding any more chains to the zone until we solve the issues that are already brought up (stake centralization risks, security risks, etc.). To be fair, I also don’t understand the value proposition to the cosmos hub. The idea for any portfolio is to be diversified and be able to hedge against itself (we are taking AEZ to the hub here) - entry point, IMO, is not answering either of those points. For the AEZ to become meaningful (if problems are sorted) it needs to be meaningful (this constitutes into investments into various fields, a balanced portfolio), not just onboard chains, because they have the tag tradeFi or anything else. This is nothing against entry point personally. But a general opinion.


No problem. It’s my personal opinion, coming from traditional finance, indexing a very complex strategy even passive indexing which takes a very well thought out process since it’s passive and not actively managed. Nobody likes losing money which indexes are supposed to hedge the risk. I still don’t still see the need for a token other than to raise funding without revenue. I think if you charge fees for the indexes like traditional markets it should be profitable. I don’t like the word community, nor governance, both have not proven at least to create value to the project. There are countless examples in cosmos of this.

It’s a good idea in theory but the marketplace is not mature enough, or everybody would be having huge success with it

Also maybe try accelerator!


Quasar Finance already does this.
Also, don’t you think a $25M valuation is excessive (especially in this market) for a product that is already so prevalent in the Cosmos ecosystem?


How is this supposed to be considered an “investment” if the tokens that are being purchased will have no monetary value (beyond voting power?)

In order to get the request off 233.000 Atom in line with what will be delivered, could please deliver more details

  1. a overview
    o why is this solution the best
    o what is the benefit for us
    o how are you going to maintain the delivered product
    o an overview of a desaster recovery
    o what licenses are needed
    o ownership of the delieverd product
  2. a milestone based project plan
    o milestones are also payment targets for delieverables
  3. a water proofed business case, showing how the work they do will deliver a return on invest - in this case 2.5m$
  4. a breakdown of man days needed
  5. an overview of the stuff (Senior & Junior) you will allocate to the project (not with some internet pseudonym) . CVs and Skills!
  6. an overview how much time each project member will work on the project incl. the price for each person.
    We talking about 2.5m$.
    If you break this down, you can
    • engage a team of 10-12 Software developers
    • for a man day rate of 1.000$ per day
    • for an entire Year, Full Time on this Projcet
    • that‘s 2.500 man days
    • how are this persons allocated to the project road map?

For a request of project i expect the applying company to deliver more detail. Especially if it comes to deliverables and payments.
A Junior developer shall not cost more than 650$ man day rate
A Senior developer not more than 1.200$ man day rate.
I expect one senior fulltime and a second half time might be okay.

Look great but i dont understand how in long term, there is any add value.

Building something first might be good or having a more detail process on how 2.5M will be used, etc…

Entry point is part of simple staking only? can you explain more about team member background?

All the development so far have been self funded
4 Devs in the Blockchain team
3 Devs front end
1 Designer
2 POs Blockchain and Frontend
2 Working on Governance and Index / Vault Strategies

The ask for the investment is to continue building, marketing etc.
We’ll go over the points above in more detail


Who are the people involved with the team behind this? Where do they operate from? How can we verify this team and what experience do they have? Who is the main contact to request additional information?

Hello Matthew,

I am fond of the idea, personally i see a real gap in the market for such a product

Coming from the relatively unique perspective of working predominately with traditional financial clients who are looking to add crypto to their investment portfolios,

If there was a reliable ETF-like product that would offer my clients an easy & efficient way to gain market exposure without the need to set up 5 different crypto wallets, and in some cases multiple exchange accounts, i wouldn’t think twice to offer it as a solution to their problems

Further to that point, the recent filings by Blackrock, Fidelity & WisdomTree have shown that the greater financials markets want crypto-backed ETFs,

Unless we want all that power & influence over the blockchain centralised we need a well structured, well supported & well funded decentralised alternative to represent us.

I hope EntryPoint will be that solution, as current options on the market are rather lacklustre


Hi @CosmosNews
core contributors of EntryPoint are employees of Simply Staking. It is Simply Staking that has fully funded the development of this project for over a year (link to the Simply Staking website is above).
There are over 40 people employed at Simply staking, the bulk of them being engineers. Simply Staking has been validating for Cosmos since Genesis, validated for numerous other chains that are unprofitable (yet they continue), helped agoric build oracles, built bonding curve module for the hub and much more.
The majority of the Simply Staking team are based in Malta and Brazil.

Come and verify us by speaking to us directly - send a DM to the twitter account ‘entrypointzone’ linked above.


I’m not seeing a lot of appetite/PMF for this right now, so it’s a tough sell to ask for $2.5 mil in a market segment that hasn’t really taken off in crypto yet. It’s cool that the hub has some of these opportunities for early venture opportunities and trying to find alignment with the consumer chains it’s securing, though.

The other questions about why a chain/token is needed combined with the above might be hard to overcome in this current iteration, imo.

That said, the Simply Staking guys are Cosmos OG’s, so this isn’t about them personally, and I hope they can find a way to make something cool, even if this doesn’t pan out. I think leaning in to Effort’s idea with Noble or Neutron is worth exploring.


Hey! Thank you for your feedback, Could you please remind me the evaluation of Quasar before launch? Also, there is not really something like EntryPoint. There are active platform to optimise yield or more complex strategies. EntryPoint aims to offer passive and simple products that give peace of mind to the investor. Moreover the target audience of EntryPoint is not only DeFi native, which could position the platform as a good liquidity onboarding tool within the ecosystem (which would benefit thanks to greater demand for its ecosystem tokens, higher TVL and higher revenues).

Any platform that generates revenue and has a protocol owned treasury has value. You have to look at it long term. Why does UNI have value as a governance token? Because as regulations come and the circumstances allow for it, you can distribute value to your stakeholders in many ways