When I learned from Jonathan Mohan that Ethereum decided to become a non-profit I was a bit confused, since there was a huge value that they appeared to be forfeiting with the profits. I kept thinking about the choice. Then, when Stellar launched, and they also chose to be a non-profit, it hit me. The value is not only not forfeited, the VALUE IS ENHANCED by being able to present the organization as an inclusive platform that industry interests cant sway. And at the same time, there is an elegant monetization path represented by the cryptocurrencies of the respective organizations, ETH, and STR. As the platforms get adopted, and the value represented by the practical applications increases, so does the value of the currency, measured in its exchange rate with BTC. There can be different distribution mechanisms, a presale in the case of Ethereum, free initial allocation in the case of STR, and it is important to get the details right of how you give out more units to employees, sponsors, partners, clients, users, etc. But I think that the cat is out of the bag, and the the smooth financing exactly proportional to the use of the platform or app, opposed to the chunky cumbersomeness of traditional fundraising will prove far superior to any other possibility. As I describe more specifically in terms of social impact, overcoming the dichotomy between non-profit and for profit activities, and well aligning the financial and social benefit interests of all concerned is going to have immensely positive implications.
Posted on: Tue, 12 Aug 2014 19:34:05 +0000
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