First there was Loot.

Quickly after Loot, derivatives started to spring up! This is great, it adds value to the entire Loot ecosystem. The Loot value paradox occurs when we start to look how the added value of Derivatives changes the value of the Loot bags that play in that system.

When a bag interacts with derivatives, it has to spend the value to interact with that derivative. Therefore, Bags that are most active, lose the most value, and yet these are the bags that create the most value in the ecosystem. Meanwhile, the bags that sit in whales’ wallets are gaining the most value by doing nothing, due to the potential energy that derivatives create. That is paradox, and that’s the very problem the Rift solves.

The Rift creates a bridge between derivatives, back into the bags that play and interact with them. Growing the value of the bags that are most active, while keeping the door open for the inactive ones.