Measuring an Onchain Economy 🔺
Matias A. (
@frostLedger) explains the framework the Avalanche Foundation is using to measure value in the Avalanche economy.
Gross Chain Product (GCP) works like GDP (Gross Domestic Product): instead of counting transactions, it sums the revenue each project generates because the chain exists, then traces how that revenue connects across projects - revealing why the economy runs the way it does, and what the chain's security currently depends on.
Gross Chain Income (GCI) works like GNI (Gross National Income), going a step further to capture income revenue alone misses - yield backing stablecoins, returns generated inside lending protocols - the value participants actually earn, not just what gets reported as revenue.
Together, GCP and GCI reveal the full value only the chain itself enables.
Once that's measured, the next questions follow: how much can be captured without disrupting the activity that creates it, and how should it be distributed.
This is what the Foundation’s research agenda is built upon.