Alliance DAO Co-founder: The most objective metric for measuring "moat" is the cost/revenue ratio

Alliance DAO co-founder QwQiao posted on platform X, stating that the most objective metric for measuring a "moat" is the cost/revenue ratio; other metrics are vanity metrics. If your business has a lasting "moat" and is in a growing market, then revenue should continue to grow. Conversely, if there is no "moat," you will either lose market share or can only maintain market share through price wars. Both scenarios will lead to costs stagnating or even declining over time.

QwQiao emphasized that a business lacking a moat does not mean it has no value. It simply means that it is passing value to customers rather than keeping it for itself. In fact, this is true for the vast majority of businesses in the world.