“The impending funding crisis that threatens Zcash”—https://t.co/H6A4ne4pzA
BTW me retweeting things doesn't mean I believe everything in them! It does mean that I think it is worth your while to read it. 👍🙂
Zooko is just going to start a new chain with extended founder reward. He’s paying himself a couple million a year. He’s already talking about it.Even Brain from Coinbase was shilling this. Probably because Coinbase gets a cut.
Same thing is happening with Monero devs starting Tari. Look it up. Big cash grab.
Stakeholders should demand voter control of fund allocation similar to Dash. Anything else is ripe for abuse.
Right? It seems nuts to me that they want to keep the Founder's Reward (FR) going. I'm sure I'd feel differently if I were in their position, but at least in the mind of miners, the FR is a huge part of what's held ZEC back from having the kind of community support that ETH or XMR, for example, have. It's like building a tax into your crypto and then wondering why people are choosing and inventing alternatives.
If they're going to tax their own crypto, then *they* will be expected to do (i.e. pay for) the work to have it succeed. And because it will never get the organic support it would without the taxation, the taxation will have to continue into perpetuity--they will always be at a disadvantage that will require monetary support to make up for. It's a cycle that isn't likely to be broken.
They can talk all they want about the tech, but XMR supporters, for example, are fanatics. Network effect trumps first-mover advantage every time. Tech can be improved much easier than community sentiment and image can be changed.
Not saying this is an easy problem to solve. Whatever options are considered, it's critical to think very carefully about using miners for an easy money-grab. That gravy train's predicated on miners being able to sell ZEC *for more than they'd get from all other alternative blockchains*. As competition in the "privacy coin" space continues to grow, miners will have more options, and options without the same tax burden will intrinsically have higher profitability potential.
It’s unclear to me how much should go to founders of things like currency. Shouldn’t the amount of funds to a dev team depend on some sort of measure of value rather than a cut of all future tokens? That seems unsustainable and part of the reason why a cutoff would be designed into the system.
I’ve been through a lot of discussions around what a fair price is to pay for the devs of a community resource and I don’t think I’ve ever seen it resolve well. A few examples I remember are plastic and kur5hin shutting down, digg and reddit and slashdot for selling off with digg and slashdot going into barebones ad models and Reddit doing whatever they’re doing.
One of the big disagreements I witnessed a lot of discussion around was how much founders thought they should get just to run community resources and how much the community wanted to pay. The most concrete I remember was the plastic, or maybe it was netslaves, founder wanting $300/month to run the servers. Not much at all, I think it was between 2000 and 2005. A few members offered to run it for free and he wouldn’t do it because he also needed the servers for his other projects. That spiraled into a boring discussion about why a community would pay for some private servers.
This relies on - and takes advantage of - a lack of understanding on how these organizations are able to operate
Drop all the currency terms and what you have is a product, a consumer good sold to the public that some employees are given. The employees are free to sell in parallel to the organization selling it.
When that runs out the organization still has 100% share ownership
So THEN it gets put on the same lower level of flexibility as startups and all private tech companies.
So the answer is not that hard: it issues stock options to founders and employees when the product sells dry up. This is not funding just incentivizing, which the article and crypto industry conflates.
The organization and founders have been funding themselves by exchanging the product for cash. LOTS of cash, for years.
The organization has an unknown amount of cash REVENUE from simply selling Zcash from their treasury+mining, this is done on the open market