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The Long-term Vision
1 to 10 year time horizon
As we enter a new era of digitalization, there are moments when it becomes essential to let our thoughts soar beyond the present, reaching the next decade. This perspective-taking might seem irrelevant given the volatility and immediacy that often define the world of cryptocurrencies, especially given that most investors' time horizons barely stretch beyond a few days. Yet, the success of a crypto protocol relies not only on its real-time effectiveness but also on its long-term vision. So, let us venture into a "Gedankenexperiment," as Albert Einstein phrased it, considering SYMMIO's potential path to success.
Imagining SYMMIO's success involves understanding the various phases of growth and development that are likely to unfold. This progression can be conceptualized through a four-stage cycle that gradually moves risk settlement operations towards SYMMIO, phasing out middlemen and traditional trading platforms.
In the initial phase, hedgers primarily use centralized exchanges (CEXs) and over-the-counter (OTC) trading desks to hedge exposure via futures. This phase characterizes an environment where risk settlement is external to SYMMIO, involving multiple intermediaries. SYMMIO is still in its foundational stage, so reliance on middlemen is significant.
Progressing into the second phase, we anticipate a decrease in dependence on middlemen as hedgers begin creating structured products and offering services using spot hedges. While they may still partially utilize CEXs, brokers, or OTC desks to resell part of their risk, the second phase marks a transitional period where risk settlement starts moving towards SYMMIO with lesser intermediaries involved.
In the third phase, CEXs, brokers, and OTC desks evolve into becoming hedgers themselves. At this stage, the risk settlement process is mostly inside SYMMIO with minor dependency on outside settlement. The system operates almost without middlemen. This crucial development means that hedgers directly handle risk, marking a significant shift towards SYMMIO becoming a self-sustaining derivatives economy.
Finally, most of the on-chain Derivatives and part of TradFi derivatives are settled within the SYMMIO protocol in the fourth and ultimate phase. This final stage denotes a reality where CEXs, hedgers, and OTC desks solely move and settle risk within SYMMIO, eliminating the need for any middlemen or external trading platforms altogether. Risk settlement is wholly internalized within SYMMIO, representing a fully realized vision of a decentralized, self-governing derivatives economy.
In conclusion, this "Gedankenexperiment" delineates a compelling vision of SYMMIO's long-term trajectory. It illuminates a future where SYMMIO fully embodies the decentralized ethos it was designed to uphold. By imagining this evolutionary arc, we can better understand the potential path that SYMMIO might tread, highlighting the vast potential of this protocol to revolutionize the crypto landscape. The journey towards this long-term vision will undeniably be challenging and intricate, yet filled with profound opportunities for innovation and growth. As we embark on this journey, we are excited about the transformative changes SYMMIO will undoubtedly bring to the digital financial world.