Ethereum is Emerging as a Global Public Good Changing Its Valuation Framework, Says William Mougayar
William Mougayar argues that Ethereum is evolving beyond being just another blockchain to becoming a global public good and a foundational public Internet layer. This shift implies that Ethereum should be valued as a value protocol rather than solely an information protocol.
The valuation approach introduced in the article is a three-part framework encompassing captured value, flow value, and trust surplus. 'Trust surplus' is particularly significant as it quantifies value derived from reduced settlement friction, lower verification costs, diminished counterparty risk, minimized fraud, and decreased reconciliation overhead. This surplus grows exponentially as Ethereum's usage expands.
Mougayar emphasizes that Ethereum's main competitive frame is the existing status quo of global coordination systems rather than direct competition with other blockchains. The network's long-term value arises from enabling trust minimization, economic settlement, and institutional adoption on a global scale, which stands in contrast to focusing on short-term throughput or immediate revenue gains.
A key concept in the analysis is the 'trust dividend,' which captures the compounding value generated by widespread trust within the Ethereum network. This perspective draws from an official Ethereum X thread and the report titled "The Internet’s Blueprint for Ethereum: A Public Goods Valuation Framework." The framework highlights the role of dependency, flows, and trust minimization as core drivers of Ethereum's value as a public good.
