Many assume SVM compatibility alone can pull liquidity toward Fogo. That view ignores the real constraint: latency discipline. Bytecode alignment lowers developer friction, but capital moves for execution quality, not tooling similarity.
Fogo’s edge depends on compressed block times, supported by a curated validator structure, geographic clustering, and a high-performance client design. This architecture reduces propagation delay and keeps consensus cycles tight. But that performance is topology-sensitive. It works best inside a controlled validator corridor.
The risk appears when validator participation expands. More geographic spread means longer communication paths and heavier cross-zone synchronization. Even small increases in latency can widen block intervals or increase fork frequency during peak demand. At that point, the perceived performance premium begins to erode.
Liquidity follows predictable settlement, not narrative compatibility. If Fogo scales validator diversity without measurable latency drift, the thesis strengthens. If timing guarantees weaken as decentralization increases, the competitive edge narrows. The real bet is not SVM alignment — it is sustaining execution speed under growth pressure.
