Investing in open, public and permissionless Networks
One paper. Nine pages. A new primitive for the internet.
Value moves without a middleman.
No bank • No platform • No gatekeeper
WEB 3.0
The third era of the Internet — where protocols replace platforms and infrastructure is owned by all stakeholders.
Bitcoin: A Peer-to-Peer
Electronic Cash System
Electronic Cash System
Satoshi Nakamoto
satoshin@gmx.com
www.bitcoin.org
satoshin@gmx.com
www.bitcoin.org
Abstract. A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power.
Testifying before the US Senate Banking Committee, Van Valkenburgh articulated what makes blockchain revolutionary:
It removes intermediaries from digital value transfer.
Permissionless • Open • Unstoppable
This is the core thesis behind our fund. We invest in the protocols that form this new public infrastructure layer — decentralized rails for finance, data, compute, and intelligence.
Internet of Information
Internet of Value
Internet
runs on …
TCP/IP
Webpages
runs on …
HTTP
Email
runs on …
SMTP / IMAP
Voice
runs on …
VoIP
Digital Money
runs on …
Bitcoin Protocol
Web 3.0
runs on …
Bitcoin, Ethereum,
Solana etc.
Solana etc.
Centralized Legacy System
Alphabet, Meta, Amazon, Microsoft —
one system controls everything.
Single point of failure.
one system controls everything.
Single point of failure.
Decentralized Blockchain Network
Everyone can participate.
Peer-to-peer, no intermediaries.
No single point of failure.
Peer-to-peer, no intermediaries.
No single point of failure.
Permissionless
No gatekeepers
Anyone can transact without approval. No bank account required — just an internet connection.
Transparent
Open & verifiable
All transactions recorded on a public ledger. Fully auditable, no hidden fees or arbitrary rules.
Direct
Peer-to-peer
Value transfers directly between parties. No intermediaries extracting fees at every step.
Incorruptible
No one can tamper with it
All results verified on-chain. No single entity can block transactions, freeze accounts, or reverse payments.
‘Read Only’ — Decentralized
‘Participatory’ — Centralized
‘No Intermediaries’ — Decentralized
Key Shift
Web 3.0 combines the decentralized ethos of Web 1.0 with the functionality of Web 2.0. Users own their data and pieces of internet services through tokens.
Architecture of
Internet of Information
Architecture of
Internet of Value
⚠ Problem
Open base layer, but the infrastructure & app layer became centralized & extractive
✓ Solution
Every layer is an open protocol — owned by no one, available to all
The Problem
$5T+ Concentrated in 5 Companies
Internet infrastructure revenue is controlled by Amazon, Google, Microsoft, Apple, and Meta. Single points of failure, rent extraction, censorship.
The Solution
Permissionless Protocols
Open, composable, owned by users. No single entity can shut them down, extract rent, or change the rules. Credibly neutral infrastructure.
The Opportunity
Valued at <2% of Centralized Equivalents
Infrastructure protocols are still early. The valuation gap between decentralized and centralized infrastructure is where the asymmetry lives.
Total Value Locked
$150B+
Annual Protocol Fees
$6B+
Oracles
1B+
Data Feeds Delivered
Layer 1s
100M+
Daily Transactions
Revenue
$500M+
Monthly Protocol Revenue
Traditional Exchange
NYSE / Nasdaq
$7.3B
Annual revenue (ICE)
$2.6B
Net income (ICE)
~12,000
Employees (ICE)
$95B
Daily volume
6.5 hrs
Trading hours / day
$90B
ICE market cap
Decentralized Protocol
Uniswap
$1.1B
Annual protocol fees
$0
Operating costs
0
Employees
$1–5B
Daily volume
24/7
Always open, global
$6.5B
UNI token market cap
Key Insight
ICE (NYSE’s parent) earns $7.3B revenue with 12,000 employees. Uniswap generates $1.1B in fees with zero employees and zero operating costs — 100% margin. Value accrues to the UNI token, not a corporation.
Uniswap demonstrates that open protocols can replace entire industries — and capture value at the protocol level.
Bear Case
Niche Adoption
0.5x
Capital preservation
Prolonged bear market. Infrastructure protocols fail to gain meaningful adoption.
Probability: ~25%
Base Case
Standard Adoption
5–8x
Infrastructure becomes Web3 backbone
Protocols become the standard Web3 backbone. DeFi TVL and oracle usage grow 10x.
Probability: ~40%
Bull Case
Institutional Wave
15–25x
Market share from centralized incumbents
Meaningful share captured from centralized incumbents. Institutional adoption accelerates. ETFs for major protocols.
Probability: ~25%
Super Bull
The TCP/IP Moment
50x+
Protocols become default infrastructure
Decentralized protocols become the default internet infrastructure. Open protocols win definitively.
Probability: ~10%
| Parameter | Details |
|---|---|
| Structure | GmbH & Co. KG |
| Tax Optimization | Fund: Capital Gains Tax (~25%) | LP Distribution: 0% |
| Management Fee | 0% |
| Carry | 20% |
| Super Carry | 30% at 20x return |
| High-Water Mark | ✓ Yes |
| Operations Cost | Funded by staking yield (min. 3% APY) |
| Investment Focus | Infrastructure Protocols (L1s, DeFi, Oracles, AI, DA) |
| Fund Admin & KVG | Tokenstreet GmbH |
Johannes de Waal
General Partner
Investor since 2015 with deep understanding of game theory, decentralized systems & cryptographic networks. Transitioned from private investor to Solo GP. Strong network of researchers & engineers providing direct ecosystem access.
Jendrik Poloczek
Senior Software Engineer & Advisor
Senior Software Engineer & Researcher at Computational Intelligence Group. M.Sc. Computer Science.