I like the price ceiling and floor approach but see two issues with it.

I like the price ceiling and floor approach but see two issues with it. If we’re selling a DAO token with equal voting rights, and a majority is required to make some decision, then someone could come in and purchase the equivalent of the token’s market cap + ε. They would then be able to make an authoritative decision. If they choose to sell the tokens after the decision had been made, they’d have effectively paid (market cap + ε -num_tokens_purchase * price_floor) to make that decision. From the point of view of an investor, being paid by the beneficiaries is great for a company like Apple that pays dividends. However, if the company/beneficiary can make better use of their income by reinvesting it rather than paying it out to the token/share holders, then price appreciate of the token/share is how that value gets realized. Amazon is a great example of this. In the safe token model, the role of price appreciation would be determined by the sale administrator rather than market forces, which seems kind of odd…

June 11, 2017 · 1 min · 178 words · Medium