# Ethereum as a Global Public Good: A New Valuation Framework
🔥 Key Takeaways
- Ethereum is increasingly being recognized as a global public good, similar to the Internet, due to its decentralized infrastructure and broad utility.
- William Mougayar proposes a valuation framework based on captured fees, wide flow value across applications, and trust surplus from reduced verification costs.
- The growing dependency on Ethereum as a settlement layer enhances its long-term value proposition.
- Traditional valuation metrics may not fully capture Ethereum’s role as a foundational public utility.
## Ethereum’s Evolution into a Public Good
Ethereum has transcended its role as a mere blockchain platform and is now being compared to essential public infrastructure like the Internet. According to William Mougayar, a prominent blockchain strategist, Ethereum’s value should be assessed not just through traditional financial metrics but through its broader societal and economic impact.
Unlike Bitcoin, which primarily functions as digital gold, Ethereum serves as a decentralized global computer, enabling smart contracts, decentralized finance (DeFi), non-fungible tokens (NFTs), and more. This versatility positions Ethereum as a public good—a resource that benefits society at large without exclusion.
## Mougayar’s Valuation Framework
Mougayar suggests three key dimensions for valuing Ethereum:
1. Captured Fees – Ethereum generates value through transaction fees (gas) and network usage, similar to how the Internet monetizes data flow.
2. Wide Flow Value Across Apps & Markets – The ecosystem’s economic activity, spanning DeFi, NFTs, and DAOs, contributes to Ethereum’s intrinsic value.
3. Trust Surplus – By reducing verification costs and counterparty risk, Ethereum creates a trust layer that traditional financial systems cannot match.
As more applications and institutions rely on Ethereum for settlement and smart contract execution, its network effects compound, reinforcing its status as a global public utility.
## Why Traditional Valuation Models Fall Short
Traditional financial models, such as discounted cash flow (DCF) or price-to-earnings (P/E) ratios, struggle to encapsulate Ethereum’s multi-dimensional value. Instead, Mougayar’s framework emphasizes:
– Network Effects – The more Ethereum is used, the more valuable it becomes.
– Decentralized Governance – Ethereum’s shift to proof-of-stake (PoS) enhances sustainability and security, further solidifying its public good status.
– Global Accessibility – Unlike corporate-controlled platforms, Ethereum operates as a permissionless, open-source protocol, making it universally accessible.
## Conclusion: Ethereum as Digital Infrastructure
Ethereum’s evolution into a global public good means its valuation must account for long-term utility, adoption, and societal impact—not just short-term price movements. As the world increasingly depends on decentralized systems, Ethereum’s role as a trustless settlement layer will only grow, reshaping how we assess its true worth.
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META_DESC: Ethereum is emerging as a global public good, requiring a new valuation framework based on network effects, captured fees, and trust surplus, according to William Mougayar.
TAGS: Ethereum, Public Good, Valuation, Blockchain, DeFi, Smart Contracts
CATEGORY: Market Analysis
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