[Analysis] Protocols as minimally extractive coordinators

Chris Burniske argues that crypto protocols are unlike businesses in that rather than extracting value they should aim to coordinate as much economic activity as they can while remaining minimally extractive. Protocols hard-code the rules they abide by with which users and suppliers are forced to follow if they want to interact with the protocol. The core logic behind the protocol does not care about profitability, rather facilitating these exchanges because if they do not the protocol will die. Suppliers and distributors building on top of protocols are businesses that require profitability, however, they are subject to stronger market forces bringing down margins due to the open nature of the protocols they are building on.

"While a protocol allows for fluid exchange between a supplier and consumer, the logic that makes up the protocol is just code that has no cares about profitability. If you want to argue that protocols are a business, show me Bitcoin’s income statement."

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