Two opposing fears are holding back the move to token-networks: a fear of the absence of governance on one side and a fear of regulation on the other. There is, however, a solution to both of these…
Investors and entrepreneurs are moving into a world where token networks influence the way new businesses are established and run. This is a sea change, a complete rethinking of the startup model for network businesses, and if businesses aren’t ready, they will be left behind.
Network businesses — especially the ones that are harder to grow and monetize and have historically used advertising — uniquely benefit from being implemented as token networks rather than companies servicing customers. “Token Networks” change the way we think about startups from a company where customers pay for a service to a token-accessible network where you plan, engineer and maintain an economy. Value created in a token-based economy can be more efficiently shared between the different token holders: founders, builders, customers, service-providers and investors.
And yet, recent weeks show strong headwinds for ICOs.
Two opposing fears are holding back the move to token-networks: a fear of the absence of governance on one side and a fear of regulation on the other.
There is, however, a solution to both of these contradictory concerns when it comes to company creation in the token era.
Burn it all down. Create a self-destructing company which would start off as a traditional company with equity investment but at some point discard its “corporate shell” and switch to a decentralized network governance structure.
Part of the problem is that the rulebook governing token-network formation and fund-raising is still being invented & written. In 2017 we saw projects raise what’s comparable to hundreds of millions of dollars via Initial Coin Offerings (ICOs), using little more than a picture of a few smiling founders and an impenetrable white paper.
Source/More: This company will self-destruct after its ICO | TechCrunch
