The Fat Protocol Thesis is an investment thesis that suggests that the value of decentralized protocols or layers (like ETH, SOL, AVAX, etc.) will grow faster than the value of the applications built on top of them. It posits that because these protocols provide the underlying infrastructure for a wide range of applications, their value will increase more significantly than the individual applications that use them. This is in contrast to the traditional internet, where most value accrual occurs at the application layer, with companies like Facebook and Amazon. The thesis argues that blockchain protocols are different because they replicate and store user data across an open and decentralized network, reducing barriers to entry and fostering a competitive ecosystem. Additionally, the use of native tokens in these protocols creates a reflexive cycle that promotes adoption and increases the value of the token as activity on the chain grows. This dynamic leads to a distribution of value where the protocol layer accrues more value than the application layer, resulting in a vibrant ecosystem with a common data layer that lowers entry barriers.