Dan Romero
@dwr.eth
The fundamental problem to solve for with personal tokens / creator coins / etc. is the psychological effect of a significant price decline. 1. Most people are not equipped to manage a liquid, global, 24/7 traded asset. 2. Current norms are that if someone buys an asset, they expect the person / team / organization behind that asset are incentivized long-term to make that asset more valuable. 3. When there's a significant price decline, many / most creators will be overwhelmed by the hole they now need to dig themselves out of. Layer on a bunch of angry, pseudonymous people screaming at them on the internet. 4. Additionally, what happens when you want to stop creating? Like Outdoor Boys recently did. Contrast to a publicly traded company where the founder retires—the value still continues to accrue. Possible ways to change this 1. Invent a new asset that's time bound. Closer to a prediction market or an option. "I'm speculating on X during period Y." 2. Change norms / culture -- this is super slow.
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Dan Romero
@dwr.eth
A secondary problem: solve the norms for allowing the creator to sell. Today, if someone behind a crypto asset sells said asset, it's deemed to be "dumping" and a bearish signal. (People tend to ignore if number keeps going up.) In public markets, there are 1) planned sales (10b5-1) and 2) transparency around insider ownership (disclosed in quarterly financials). This doesn't exist in crypto yet (despite a few efforts). Consider two scenarios: a) Taylor Swift does a concert tour and generates $2B in ticket sales from her fans. That's a direct transfer of money from fans to the creator b) Taylor Swift does a concert tour and sells $2B worth of creator coin. Fans can attend the concert if they hold X amount of her creator coin. The increase in demand for the coin provides sufficient increased market cap / liquidity for the creator to realize value. In scenarios A and B, the creator realizes the same amount of value. But in scenario B, current norms make this feel bad, whereas scenario A is normal.
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Jonny Mack
@nonlinear.eth
scenario b is significantly more complex, on multiple dimensions. why would the creator or the consumer want that? what additional value is being added in exchange for that complexity?
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Dan Romero
@dwr.eth
*in theory* you would reward the early fans who went to earlier shows before the creator became a star. so they participate in the upside. to be clear: I’m skeptical but with perfect execution seems plausible.
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Jonny Mack
@nonlinear.eth
how would early fans be rewarded by participating in the upside? by selling the tokens they bought prior to the creator becoming a star to fans that want to buy post-stardom? if that's the case, then the $2B in your example wouldn't be 100% realized by the creator, but some combination of creator + early fans (a net worse outcome for the creator) so even with perfect execution it seems... implausible?
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Ok, Jose
@okjose
the fundamental problem here is that we're shifting the premise for the exchange -- as a ticket buyer, my expected reward is a great show. as a coin buyer, you're creating a scenario where my expected reward isn't known until i either redeem access to the event or sell at whatever level i decide to.
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Ok, Jose
@okjose
i myself as a coin holder may not know what my expected reward is until the point of redemption, either. e.g. i buy the Taylor coin thinking i can't wait to go to the NYC show, but then i lose my job three days beforehand and selling the coin gives me a three month buffer.
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Jonny Mack
@nonlinear.eth
well said. coins confuse the answers to "what am i selling?" and "what am i buying?". nonstarter imo—people don't want to think that hard when making a purchase
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