Logos Labs - The Surely You’re Joking Protocol Token $LOGOS
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$LOGOS Protocol Exit Framework
Logos Labs - The Surely You’re Joking Protocol Token $LOGOS

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$LOGOS Protocol Exit Framework

Owning protocols is a long-term compounding game. But part of compounding is pruning — cutting what no longer fits the mission so capital and attention can flow to higher-conviction bets.

Why This Matters

Long-term compounding isn’t about holding everything forever.
It’s about holding the right things forever.
When conviction fades, we act decisively and without regret.
We don’t wait for the market to validate our decision — we trust our process.
This is how we decide to exit a protocol position:
⁠

1. Conviction Test

Ask: If we didn’t own this today, would we buy it?
Yes: Keep holding.
No: Move to Step 2.

2. Alignment with Mission

Our mission is to own and compound the protocols that become the rails of the next internet.
A protocol stays in our portfolio only if:
It’s still in a category we believe will be a 100-year protocol (identity, messaging, social, compute, energy, etc.)
We believe the team, governance, and ecosystem can win in that category

3. Execution & Team Excellence

We measure:
Shipping cadence (how fast and consistently they build)
Ecosystem growth (integrations, active devs, organic adoption)
Governance quality (transparency, responsiveness)
Team depth (can they attract and retain top talent)

4. Opportunity Cost

Every dollar in a low-conviction protocol is a dollar not in BTC, ETH, or a high-conviction asymmetric bet.
If another protocol offers:
Higher upside
More alignment with our thesis
Stronger compounding potential
…we sell and reallocate.

5. Exit Mechanics

Exit patiently (avoid panic-selling in low liquidity)
Use OTC or staggered sales if position is large
Reinvest proceeds immediately into higher-conviction positions or hold in stables ready for buy-down events
If another protocol in the same category is executing materially better (e.g., World vs ENS for identity), we reallocate.
If it’s no longer aligned, we exit.
💡 Key Principle:
We exit only when our conviction is fundamentally broken and there’s a better use for the capital over the next decade — never because of short-term volatility.

Loss Management Philosophy

No Anchoring: We do not hold “to get back to even.”
No Sunk Cost Fallacy: Past effort or time in an asset does not justify future capital if thesis is broken.
Opportunity Cost Aware: Every dollar in a low-conviction asset is a dollar not compounding in a high-conviction one.
Tax-Aware Exits: Optimize sale timing for tax efficiency where applicable, but do not let tax considerations trap capital indefinitely.
I’ve built your Protocol Exit Checklist so you can run every holding through the same disciplined process and know when to prune.
Protocol Exit Framework
Exit Criteria
Action if 'No'
Conviction Test: If we didn’t own it today, would we buy it?
Move to next step in checklist
Mission Alignment: Still a potential 100-year protocol in our core categories?
If no → mark for exit
Execution & Team Excellence: Strong shipping cadence, ecosystem growth, governance, and talent?
If no → mark for exit
Category Leadership: Still best positioned to win vs. competitors?
If no → mark for exit
Opportunity Cost: Is there a higher-conviction protocol to reallocate into?
If yes → reallocate capital
Exit Mechanics: Can we exit without causing unnecessary slippage or loss?
Plan exit strategy: OTC, staggered sales, or market sell in strong liquidity
There are no rows in this table
⁠

Examples

ENS (Current View):
Mission Fit: Identity is core to our mission.
Execution Strength: Weak vs. emerging competitors.
Competitive Position: Likely to lose mindshare to faster-moving protocols like Worldcoin.
Decision: Exit over time into USDC reserve and redeploy into higher-conviction identity protocols.
Hypothetical Future Case:
If ETH governance became captured and stagnated while another L1 captured the smart contract ecosystem, ETH could be reviewed under this same process (though unlikely given current trajectory).
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