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Zach Rynes | CLG
Zach Rynes | CLG@ChainLinkGod·
Unfortunately, this does not resolve the fundamental conflict of the token vs equity split Equity investors have legally enforceable economic and legal rights, where the company has a fiduciary responsibility and disclosure obligations to shareholders Token holders have none of this and depend upon economic incentives and company/exec goodwill for value accrual, with no legal enforcement layer if that alignment changes What stops Venice from issuing another token, abandoning the current token, or diverting all revenue streams to equity investors, the answer is nothing, at least not legally For every incremental marginal dollar earned, the equity holder would benefit from an equity dividend/buyback, while the token holder would benefit from a token dividend/buyback There’s either a clear boundary between these two different sets of investors, in terms of what percentage of revenue accrues to each, or you’ve created a confusing convoluted capital structure thats difficult to assess
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