Rob discusses token control and governance

    by Freddenver: Crypto

    Rob's take on tokenomics cuts through the usual noise by insisting that tokens must represent actual control and power over a protocol rather than just being a cash cow. He argues that massive revenue sharing models don't make sense for startups, which should instead be reinvesting capital into themselves to grow. The trade-off is compensating the community with emissions since most revenue isn't being shared out, though he notes emissions should decrease as revenue goes up. Over time, buy-back and distribute mechanisms are predicted to become the dominant way of emitting tokens. There is also a strong philosophical push toward tokens looking like traditional ownership interests eventually, but Rob warns that normal ownership structures equate to governance, which is tricky. Decentralized governance systems require years to build properly, and most current DeFi governance feels pointless right now. Success stories are limited to mature protocols or experimental projects like Philodrome and Aerodrome. This is exactly where Rob wants the InFi token to head in the long run, even though it won't have governance at launch because the technical complexity is too high. #Crypto #Tech

    Transcript (en)

    Yeah, so I would say I have to be really careful my philosophical belief of a token is that a token should represent the control of the protocol Power over the protocol. I think ultimately these tokens should start to look like Traditional ownership interests I'm being very careful with words right now Jack Please do. half a million a year. We made last year So we got revenue But you want to compensate that you not sharing most of that with the community with emissions I think that an important thing It kind of like over time emissions should go down and revenue should go up. I end up seeing buy back and distribute become the dominant mode of emitting tokens out over time. I also think that long term, the philosophical power of a token is much greater. And what do I mean by that? I mean that normal ownership structures just mean governance. Governance, if you just throw governance out there too quickly, it ends up really stupid. Decentralized governance systems take years to properly build. But most DeFi governance is kind of pointless. where I've seen it really, really, really, really, really succeed is with either mature DeFi protocols or highly experimental stuff like Philodrome and Aerodrome. And the latter of those is where I would like to see the InFi token go. It's not going to be there at launch because that's too much technical complexity.