Most Layer 1 blockchains are losing money
SEC classified 16 crypto assets as digital commodities. Dual ETFs launching. Emission cuts happening. Every crypto investor sees "revenue" numbers — but the cost picture is finally changing.
Layer 1 Blockchains at a Glance
Wait — blockchains can lose money?
Every blockchain collects fees from users (for transfers, trading, smart contracts). That's their revenue.
But to keep running, most blockchains also print new tokens as rewards for validators who secure the network. These new tokens dilute everyone who holds the existing supply — just like a company issuing new shares.
Net earnings = fees collected minus new tokens printed. It's the same concept as a company's profit: revenue minus costs.
When a blockchain prints more in new tokens than it collects in fees, it's losing money on every transaction — and token holders pay the price through dilution. Most "revenue" numbers you see on crypto Twitter ignore this entirely.
The Scoreboard: Who Actually Makes Money?
The Cost to Earn $1
How much each project spends in inflation to generate $1 in fees
The Hidden Sell Pressure
Some tokens have billions in locked supply that's slowly being released to early investors — who often sell