Crypto creates an “incentive vortex” that is destined to take over everything, according to the investment firm’s founder and CIO.Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Pandora, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.Polychain Capital founder and CIO Olaf Carlson-Wee has been through every single bubble in crypto history, from Bitcoin’s rise past the single digits in 2012 to the ICO craze of 2017 to 2021’s NFT mania, and he says his main thesis about crypto has remained consistent since the beginning. That is, that crypto constitutes an “incentive vortex” that will replace the world’s preoccupation with country-backed currencies. Carlson-Wee, who was the first employee at Coinbase, joins Unchained to discuss the significance of the launch of spot Bitcoin ETFs, how he successfully navigated all the industry blow-ups in 2022, the challenges of balancing incentives for early adopters versus new users, why EigenLayer is so significant, why Worldcoin’s distribution strategy is a “disaster,” and the strange places that the intersection between crypto and AI could take us. Show highlights:Why Olaf sees the current market as the cusp of another bull run and how his thesis has remained consistent since 2011​​How the launch of spot Bitcoin ETFs marks a significant milestone Why criticisms of the crypto space are really criticisms of money in general The fundamental differences between Web3 applications and the Web2 ecosystem and why they matterThe importance of fair token distribution in enhancing the value of Web3 projectsWhen Olaf expects Bitcoin to replace legacy financial systemsThe areas and technologies Olaf and his fund are keen to invest inWhy Olaf thinks a modular blockchain architecture is superior to a monolithic one in the long termHow EigenLayer is innovating to enable new types of applications and whether it competes with CelestiaHow Polychain managed to avoid being hurt by the major market blowups of 2022, including Terra and FTXThe evolution of the space from an ideologically driven to a more pragmatic approachThe significance of incentive design in crypto ecosystems and the trade-offs involved in system designOlaf’s perspective on the recent rise of points systemsThe growth of privacy-focused crypto projects and the potential for private blockchains to become the normWhy he thinks Worldcoin’s distribution strategy is a “disaster”Olaf’s interest in the intersection of AI and crypto and potential developments in this areaHis bullish outlook on SocialFi and Web3 gamingThank you to our sponsors!  Popcorn NetworkGuest:Olaf Carlson-Wee, founder and CIO of Polychain CapitalPrevious appearances on Unchained:Olaf Carlson-Wee: 'If There Is a Money-Losing Exploit, the Money Is Gone' Why The First Employee Of Coinbase Launched A Hedge FundTo the Moon and Back With Polychain's Olaf Carlson-WeeSpecial Episode with CNBC's Crypto Trader: Olaf Carlson-Wee on Why This Crypto Winter Is Different From Previous OnesAll Things Cryptoeconomics, Pt. 1, With Olaf Carlson-Wee and Ryan Zurrer of Polychain CapitalLinks:Olaf Carlson-WeeForbes: This Man Has Been Living On Bitcoin For 3 YearsWhy This Hedge Fund CEO Once 'Put Most Of My Meager Life Savings Into Bitcoin'TechCrunch: The future is a decentralized internetBlockworks: Why Polychain Capital Founder Never Sells His Crypto CoinDesk: Olaf Carlson-Wee: Crypto Is the Great Wealth-Redistribution MachineRestaking/EigenLayerUnchained: DeFi Protocol EigenLayer Reaches Restaking Capacity, Pushing TVL Past $1.4 BillionDo You Need to Think Twice Before Restaking Your Assets? Olaf’s tweet on EigenLayerCrypto + AIOlaf’s tweet: “in crypto nearly 100% of value accrues to start-ups and outsiders, not existing establishment interests”The crypto ethosEpisode of The Chopping Block where Haseeb Qureshi talks about Justin SunRecent investments from Polychain CapitalCoinDesk: Crypto VC Firm Polychain Capital Raises $200M for