The reason why "true Builders" are being marginalized — The brutal truth about Web3 revealed by the crash of Gas tokens

When Steve Yegge made the decision to focus solely on development, the market began to treat him coldly. The Gas token, which reached a market cap of $60 million on January 16, then plummeted just a few days later. As of January 26, 2026, its circulating market value had fluctuated around $120.1 million, but it had fallen significantly from its initial high. Behind this contradictory phenomenon lies the most serious structural problem facing Web3 — it’s not an economy where builders are rewarded for their core work, but a speculative market where gaining attention is the top priority.

When Technicians’ Dreams Turn into Meme Speculation

Steve Yegge is certainly not an ordinary programmer. With 40 years of coding experience, he is a legendary Silicon Valley engineer who has worked at top companies like Amazon, Google, and Grab. His long-form article, “Bags and the Creator Economy,” completely changed perceptions of the BAGS platform.

The scenario described in that article resonated deeply with many technologists. He recounted receiving a $49,000 transfer from an unknown person via LinkedIn message. His wife suspected it was a scam, and he himself felt it might be a trap, but upon checking, the money was indeed in his account. Through this experience, he realized that BAGS was not just a shady project but a platform with the potential to rebuild the creator economy.

His analysis was compelling. “BAGS is a marketplace fueling creativity, where people try to predict and support future winners. The era has come where individuals and small teams can produce astonishing results,” he said. These words instantly heightened expectations among many Web3 participants.

However, the market’s true reason for sending him money was actually to buy his “expectations.” It was not about the product’s actual performance but about speculation on the reputation of a celebrity and the “future” that might be created.

The Paradox of the Builder’s Fate — Focusing on Development Becomes a “Bad Signal”

Here, a cruel paradox emerges.

On January 17, Steve Yegge officially declared, “I will return to development, devote myself fully to Gas Town, and cannot spend time on crypto-related activities on Twitter.” This should have been the most welcome news for investors — a promise that the builder is genuinely committed to product development.

But the market reacted in the opposite way. Following his announcement, the Gas token plummeted. Why was the “good news” of focusing on development interpreted as “bad news”?

The answer is simple. The market did not see Gas as a real AI product. Instead, it viewed it as the next AI meme for speculation. His continuous exposure on social media and the ongoing introduction of new topics kept the “emotional liquidity” of speculators alive. But as soon as he went silent and focused on development, that liquidity evaporated instantly.

What the Web3 market seeks is not an innovative product but a continuous story. The market lacks the patience to wait for “builders to hone their skills” through the process.

The Structural Dilemma Hidden in the BAGS Ecosystem

Understanding the BAGS mechanism clarifies the core issue.

BAGS is a token launch and trading platform utilizing Meteora on Solana. Unlike other launch platforms, it allows creators to specify the recipient of trading royalties at the time of token issuance. The default royalty rate is 1%, and in the case of Gas, 99% of the $270,000 in generated transaction fees flow directly to Steve Yegge himself.

At first glance, this appears to be a perfect creator economy model. Developers can focus on development, the community continuously empowers them, and in return, they receive dividends — an ideal win-win.

However, this model has a fundamental flaw. Developers who gain passive income might still lack the motivation to complete “boring, long, and potentially failing technical achievements.” In the BAGS ecosystem, the tokens with the highest market caps are “RALPH” ($29 million) and “Gas.” RALPH is an homage to the AI programming culture of “Ralph Wiggum Technique” (trial and error), and Gas is derived from the tool “Gas Town.” Both prioritize meme value over actual product development.

The Attention Economy and the Time Gap in Product Building

The world of Web3 AI is dominated by the attention economy. In a Player vs Player (PvP) battlefield, capital flows at the speed of seconds (transactions), while the pace of building excellent products is slow as a turtle (months to years).

This time gap creates all contradictions. The market buys “expectations” but cannot wait for them to materialize. Speculators keep seeking the next “good news,” and if the story loses its freshness, they immediately withdraw from the token.

“Focusing on development” is the true duty of a builder. But in this economic system, silence equals death. When creators stop reporting to the market and concentrate on maturing their technology, the market treats them coldly. In a Web3 environment ruled by the attention economy, builders are forced to become content creators rather than product artisans.

Conclusion — The Gap Between the Creator Economy’s Ideals and Reality

So, is BAGS the future of the creator economy?

Perhaps it has that potential. For Web2 developers, the direct reward mechanism through tokens is revolutionary. It opens a path to “passive income” that was previously unavailable.

However, at present, it is merely an illusion. Web2 developers are accustomed to taking responsibility for their codebases, but Web3 forces them to be responsible for market capitalization. When Steve Yegge wanted to return to his core engineering duties, the market punished his “silence.” After receiving a $300,000 transaction royalty, his decision that “I should not spend more time earning money” — even if it was the most “noble” and “honest” choice — was not appreciated by the market economy.

For BAGS to truly build a creator economy, it must break free from the attention-dependent speculative culture and shift toward a system that values long-term product worth. Currently, Web3 has not yet reached that level of maturity.

In a world where true builders are marginalized, no innovative products will emerge. The importance of DYOR (Do Your Own Research) has never been greater.