On a man-made lake there's a sheet of thin ice
Open to many interpretations as GZA himself said, but the most immediate is the “mad-made lake” referring to the rap game/industry, and the “sheet of thin ice” referring to over-used ice/bling lyrics. Leading to the following line…
Another alternative explanation is the following The “sheet of thin ice” may be referring to the fragility of being on top of the rap game, as one can easily slip and crash through the ice at any moment.
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