Recently, a few blockchain game pools have started "doubling output" again, basically meaning inflation is running wild. It looked lively at first, but later it all depended on new people coming in to take over the output. A small chart on the chain makes it very clear: TVL hasn't really increased much, but the rate of issuing tokens/items is getting faster and faster. The actual cash flow in the pool can't keep up at all, and in the end, it's just a bunch of rewards smashing into each other.

Now, the group is still discussing whether the extreme funding rates are about to reverse or if the bubble will continue to be squeezed. My personal feeling is: the more people argue about it, the more it shows they’re uncertain. It’s a bit like those chain games where "the higher the rewards, the more panicked."

For safety, I usually take an extra step: I’d rather earn a little less than take risks. I’ll check the contract and vault addresses, and quickly look at the past few days’ fund inflows and outflows to see if they’re normal… It’s troublesome, but it’s cheaper than regretting later. That’s all for now.