Have you heard of disguised unemployment? This refers to a situation where a part of the task force appears to be employed, but does not contribute to the production of the economy. Consider large -scale capital expenditure loss from ghost cities, which represent uninhabited infrastructure.
The top smart contract blockchain can be said to be something similar that hosts hundreds of decentralized protocols. Of these, only one minority is generating revenue, while no other produce produces, ghosts desertly represents digital cities and is a form of disguised unemployment.
According to defilamaThe Etharium is the world’s largest smart contract blockchain, hosting 1,271 protocols. Nevertheless, in the last 30 days, total 88%, or 1,121 projects in total made no revenue.
Atherium’s opponent, Solana, much more Small ecosystem264 protocol host, 75% of which have not generated revenue in the last few days.
In other words, a large number of protocols on two series have not recently occupied any value, much like a workforce that draws salary, but does not contribute to output, or ghost cities, which are not being used to generate a meaningful economic return.
Major AI insight
Inactive projects are not necessarily a direct burden on network processing power, just as there is a crowded network, but they put an indirect burden in the following ways:
Storage burden
Each smart contract, active or not, is stored forever on blockchain. This adds to the size of the irreversible data blockchain, and all the nodes of the network will have to store and maintain this history. As the total number of contracts increases, the way the nodes increase storage and bandwidth requirements. While the effect of a single passive contract is minimal, one of the thousands of “ghost city” combines over time, increasing the long -term operating costs of the network.
Safety and vulnerability risk
The existence of inactive or abandoned contracts in a large number makes a large attack surface. A smart contract, even if it is not used, may have a vulnerability, which is exploited, may have unexpected results for other parts of the ecosystem or funds locked within it. This introduces a layer of systemic risk to the network that must be constantly monitored by safety researchers and auditors.
Economic disability
This is the place where “disguised unemployment” analogy is most suitable. While these projects are not causing congestion, they represent the capital and collective failure of the developer time to create a productive property on the network. The funds, time and efforts spent to deploy these projects are effectively closed in a non-productive state, which is a drag on the overall efficiency of the ecosystem.
The way a physical ghost city represents a large-scale investment of capital and labor, which does not make an economic return, a rush of non-revenue-generating protocols on blockchain represents waste developer efforts and capital that does not contribute to network productivity.
Obstruction to user experience
A large number of passive projects can make it difficult for new users to find legitimate, active protocols and rely on them. Flowing through the sea of deformed or unsuccessful projects can be misleading and is different from overall user experience.
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