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Yes: Keep holding.No: Move to Step 2.
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
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)
Higher upsideMore alignment with our thesisStronger compounding potential
Exit patiently (avoid panic-selling in low liquidity)Use OTC or staggered sales if position is largeReinvest proceeds immediately into higher-conviction positions or hold in stables ready for buy-down events
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.
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).
$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?
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:
3. Execution & Team Excellence
We measure:
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:
…we sell and reallocate.
5. Exit Mechanics
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
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
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