Recently, discussions about RWA on the blockchain have been getting pretty heated. It feels like a lot of people fixate on “on-chain tradability” and automatically fill in the blank as “can sell anytime”—put simply, it’s a liquidity illusion. The real thing that matters is the redemption terms: who can redeem, how long settlement takes, what happens when risk controls/holidays come into play, whether there’s a cap… If these aren’t clearly spelled out, the little on-chain trading volume is more like emotional self-indulgence.

I usually look at fund flows and the redemption window side by side: how quickly money comes in on-chain, and whether there’s any hiccup when you try to get out. If it hiccups, you’ll know what the mirror ball is reflecting. By the way, the recent complaints from retail investors about validators making money and MEV ordering being unfair also seem to be the same kind of issue—where are the rules, who gets to make the call, and what determines the outcome isn’t the price, but whether you can “exit according to the terms.” (Don’t ask—I’ve been tricked by the line “redeemable = can run at any time,” too.)