Do Crypto-Token Sales Make Sense for Open-Source Projects?

[eye4bd]

Do Crypto-Token Sales Make Sense for Open-Source Projects?

Spurred by Union Square Ventures partner Albert Wenger's recent blog post, there's been lots of discussion about crypto-tokens in recent week.

This has led to excitement and skepticism about their ability to incentivize open-source developers to create and maintain protocols.

However, as Runa Capital has funded a number of developers who have created and maintained thriving open-source protocols, I wanted to shine some light on this approach in the context of how open-source developers have been incentivized historically....

http://www.coindesk.com/crypto-token-sales-make-sense-open-source-projects/

[Divinespark]

It's the prevailing narrative now being pushed by many influential investors and operators, the trouble is I am not sure that many small guys in the space can take responsibility for their decisions and watch their money get wiped out, unlike accredited investors.

[eye4bd]

It's the prevailing narrative now being pushed by many influential investors and operators, the trouble is I am not sure that many small guys in the space can take responsibility for their decisions and watch their money get wiped out, unlike accredited investors.

Hi
Thank you for thoughtful input!
I'm not an expert, but did able to experience the scenario your are talking about from very close distence. And my experince wasn't fruitfully!

Thanks!

[ttookk]

I think that tokens can simplify crowdfunding, if done right.

If you crowdfund a project that can be bought after the crowdfund, you could issue a fixed rate of price per token and additionally, how many tokens you need to purchase the product.

This helps tracking the size of investment a crowdfunder did. Additionally, a crowdfunder might decide to sell their tokens early. This way, someone else might buy the right to purchase the product.

The project developers might have an token address, that is effectively a burn address. If a crowdfunder, or whoever has a sufficient amount of tokens, wants to purchase the product, the needed amount of tokens will be burned.

For crowdfunders, this might be a speculative opportunity, because the product will probably have a discount, if it is purchased through tokens. Thus, people may be interested to buy tokens to purchase tha product and may be willing to pay more than the crowfunder paid for them.