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People don't want governance tokens. What people really want is equity.
But the thing about crypto is we don't actually make any goods or sell any services, so any equity would be worthless anyway.
We just trade the bones of corporate orgs, dressed up as tokens. It's weird lol
But the thing about crypto is we don't actually make any goods or sell any services, so any equity would be worthless anyway.
We just trade the bones of corporate orgs, dressed up as tokens. It's weird lol
I'm a corporate attorney, so I'll dive into basic corporate law a bit here.
Corporations have officers, a board, and shareholders. Each play a certain role the broader organization.
Officers (think CEO) are actually the least important. They serve at the leisure of the Board.
Corporations have officers, a board, and shareholders. Each play a certain role the broader organization.
Officers (think CEO) are actually the least important. They serve at the leisure of the Board.
The officers are typically in charge of the day-to-day affairs of the company.
They manage the operations and employees. They sign contracts and pay vendors (subject to limitations, set forth below).
But they have no power. No *real* power, anyway.
They manage the operations and employees. They sign contracts and pay vendors (subject to limitations, set forth below).
But they have no power. No *real* power, anyway.
The Board of Directors (typically) appoints the officers.
The Board of Directors meets from time to time (either on a set date (e.g. quarterly) or when something major needs to be decided.
The Board (and the committees) make decisions on key aspects of the business.
The Board of Directors meets from time to time (either on a set date (e.g. quarterly) or when something major needs to be decided.
The Board (and the committees) make decisions on key aspects of the business.
The board governs and oversees the corporation.
They form committees to shape policy and overall direction of the company.
They vote to decide things like when to issue equity, sell the company, launch a new division, or expand into a new market.
The big stuff.
They form committees to shape policy and overall direction of the company.
They vote to decide things like when to issue equity, sell the company, launch a new division, or expand into a new market.
The big stuff.
Then, at the top, you have the shareholders.
Shareholders are rarely involved in the management of the company.
Rather, shareholders VOTE on the critical matters set forth by the board. Selling the company, issuing a dividend, issuing new shares.
This is the control piece.
Shareholders are rarely involved in the management of the company.
Rather, shareholders VOTE on the critical matters set forth by the board. Selling the company, issuing a dividend, issuing new shares.
This is the control piece.
Depending on the structure of the corp (as set forth in the bylaws), shareholders may have more or less voting power.
And of course, shareholders also have an ownership piece. Each share represents a small % of the company.
Shareholders pick the board, the board picks officers
And of course, shareholders also have an ownership piece. Each share represents a small % of the company.
Shareholders pick the board, the board picks officers
So crypto is like "HERE'S THESE GOVERNANCE TOKENS COOL!"
But these DAOs are just not structured the same, nor are they as sophisticated.
So what you end up with is sort of a jumbled mess of duties and rights. Maybe you get to vote. But you don't own equity or have any control.
But these DAOs are just not structured the same, nor are they as sophisticated.
So what you end up with is sort of a jumbled mess of duties and rights. Maybe you get to vote. But you don't own equity or have any control.
I'd be interested in crypo lawyers thoughts on this one ( @propelforward @lex_node @collins_belton @stephendpalley) but I just don't understand the point of governance token of a DAO, when the actual org/coin/project doesn't own any assets or sell any services.
What's the point?
What's the point?
