TechFlow news, November 30: According to QwQiao, co-founder of Alliance DAO, who posted on X, the most objective metric for measuring a "moat" is the fee-to-revenue ratio; all other metrics are vanity metrics. If your business has a durable "moat" and operates in a growing market, revenue should continue to grow. Conversely, if there is no "moat," you will either lose market share or maintain it only through price wars. In both cases, fees will stagnate or even decline over time.
QwQiao emphasized that lacking a moat does not mean a business has no value. It simply means the value is passed on to customers rather than being captured by the business itself. In fact, most businesses in the world operate this way.
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