Constellation caught my interest last year.
I wasn’t familiar with the project until the Kaspa community started labeling all other DAG-based chains, including Constellation, as scams.
I quickly grew interested in Constellation and added it to my watchlist, though I somehow forgot to dive deeper into it until recently.
Constellation is just a beast!
If you’re seeking an enterprise-focused, business-enabling blockchain, Constellation is worth considering.
The project is based in the USA and could rapidly gain adoption if a crypto-friendly candidate like Trump wins the election.
What is Constellation / DAG?
Constellation is fundamentally a layer-0 blockchain. It also includes « metagraphs, » which are essentially layer-1 chains.
The Constellation Network consists of multiple metagraphs/layer-1s, all of which communicate with the layer-0.
I am particularly fond of this design because it makes Constellation ideal for companies and businesses.
Entrepreneurs and enterprises can create a metagraph and customize it to suit their specific needs and projects.
This flexibility allows a general-purpose network like Constellation to be tailored for specific use cases such as DePin, RWA, AI, Gaming, DeFi, Data, etc.
DeFi can also be unified across metagraphs, meaning a DEX can be compatible with all other metagraphs.
Worth noting, a metagraph can have a native token and charge additional fees on top of the DAG gas fees, offering countless potential use cases for entrepreneurs and companies.
▫️Team
The Constellation team is extensive, with many individuals contributing to the project.
In addition to the core team, they have strategic advisors with expertise in business, crypto, and finance.
To succeed, a project needs key players in all areas: tech, strategy, accountability, business acquisition, branding, etc.
The Constellation core team covers all these crucial fields which is a strong point.
I don’t like when they’re only tech guys in the core team.
▫️Ecosystem Growth
Adoption is now a critical factor for me when considering an investment. I’ve often been burned by « early » projects that lacked adoption.
I now prefer to focus on mature projects or those with a clear path to adoption.
Constellation stands out in this regard, already having partnerships with high-ranking entities like the U.S. Department of Defense and other companies.
Additionally, Constellation is dedicated to growing an ecosystem of dApps, with a DEX in the pipeline and an ongoing hackathon.
The recent release of the Ethereum bridge and a liquid wDAG/ETH pool on Balancer also demonstrates their commitment to building a robust ecosystem.
▫️Summary
DAG feels undervalued. A market cap of around 100 million for such a significant project seems low.
The only downside is that DAG already surpassed the billion market cap milestone in 2021.
Personally, I prefer to buy and hold « fresh coins, » and the billion market cap is my threshold.
But I make an exception for DAG because even 1 billion still feels undervalued for such a beast.
I believe blockchain technology has a higher chance of being adopted by businesses than by retail users. So it makes a strong case for Constellation it this prediction turns out to be true.
I am confident will perform well and wouldn’t be surprised to see it become a top performer.
DAG TOKENOMICS
METANOMICS: Is DAG’s Adoption Around the Corner?
A few weeks ago, Constellation new tokenomics for $DAG, and at first, I didn’t overthink it (change in tokenomics and supply can be tricky).
Today, I decided to grab more $DAG, convinced that these “metanomics” could be a game-changer for Constellation’s future.
Because those new tokenomics can address the challenge of adoption for DAG.
After spending weeks diving deep into on-chain metrics across different projects, I learned a hard truth:
Adoption is brutally hard.
And it’s no surprise—adoption breeds concentration.
For any entrepreneur, it’s smarter to build on Ethereum, BSC, Arbitrum, Solana, or Base—places where ecosystems and value are already circulating—than on a blockchain with no traction.
Constellation’s new “Metanomics” model kicks off in Q1 2025, transforming $DAG into a flexible-supply token.
As part of this, 450 million DAG will be unlocked, with the following distribution (subject to change):
– Scaling Operations: 50M DAG
– Community Incentives: 50M DAG
– Marketing & Network Adoption: 50M DAG
– Employee Incentives: 50M DAG (18-month vesting)
– Public Goods, R&D, Engineering: 250M DAG
Plus, a few major upgrades are on the horizon, including delegated staking, which I’ve been waiting for.
Delegators will also have the option to allocate part of their staking rewards to Metagraphs—essentially funding projects while boosting network security. T
This is a clever move, helping solve the “Staking Dilemma”.
These changes clearly show one focus: driving adoption for Constellation.
And the timing couldn’t be better. The infrastructure is mature. What the chain really needs now are users and dapps.
A steep challenge for sure but I feel like DAG team got their shit together.
With DAG still under a $100 million market cap, it feels like a steal right now. I’m betting on it! 👈
