Author Topic: DAC development incentive models  (Read 7382 times)

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Offline toast

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Since there is no mining there is no such thing as a premine. Instead of dilution just set aside a percentage of the shares for developers just like Mastercoin did. It is working best under the Mastercoin model. The dilution model is speculative and likely will upset investors while not accomplishing any more than the Mastercoin pre-allocation model,

Pre-allocate your shares for development costs in terms of a percentage or raise transaction fees. No dilutions no bullshit.

That is equivalent to dilution... dulution is just preallocation with an honest "total supply" label

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Offline Troglodactyl

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...If the majority deem it appropriate they can violate the property rights of the minority...

This would be true, except that by buying into a DAC that allows such dilution, you are voluntarily surrendering ultimate ownership of your property to the majority shareholders.  Personally I'm rather averse to doing that, but I don't think it's a violation of property rights unless force/fraud are involved in the buy in.

Since there is no mining there is no such thing as a premine. Instead of dilution just set aside a percentage of the shares for developers just like Mastercoin did. It is working best under the Mastercoin model. The dilution model is speculative and likely will upset investors while not accomplishing any more than the Mastercoin pre-allocation model,

Pre-allocate your shares for development costs in terms of a percentage or raise transaction fees. No dilutions no bullshit.

Or even preallocate shares to an AGS style fund, allowing ongoing contributions concurrent with development, which provides the benefit of a solid metric of current market approval and optimism.

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ongoing funding through share dilution is the same thing as taxation

This is true in that it taxes the shareholders, but "taxation" has connotations of coercing universal participation within a set of geographic borders.  In a DAC participation and buy in should always be voluntary.

Its the same process in this system as it is with any government that imposes taxes or finances operations through debt and inflation. If the majority deem it appropriate they can violate the property rights of the minority. If 51% want to dilute shares why can they not donate the desired funds themselves? Dilution doesn't make any logical sense. Companies dilute stock when a capital expenditure is excessive to the point that it may not even get repaid. DACs don't need VCs to get started and they don't need costly R&D, which are to main scenarios for dilution. If I am an early investor and I see my investment increase by more than 100% do you really think I'm not going to want to donate funds to see my position appreciate more?

Offline luckybit

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Since there is no mining there is no such thing as a premine. Instead of dilution just set aside a percentage of the shares for developers just like Mastercoin did. It is working best under the Mastercoin model. The dilution model is speculative and likely will upset investors while not accomplishing any more than the Mastercoin pre-allocation model,

Pre-allocate your shares for development costs in terms of a percentage or raise transaction fees. No dilutions no bullshit.
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Offline gamey

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'I think any of funding models may have a place.  Anything you seriously consider will likely have an application given the right set of participants.  The thing about dilution is you're incentivizing people to stick around.  Meh, I don't even care to argue my points as I've said them elsewhere.

I think with some sort of partial closed source DAC you really really need dilution.  THere will not be the typical "lets fork" option. 
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Offline Troglodactyl

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ongoing funding through share dilution is the same thing as taxation

This is true in that it taxes the shareholders, but "taxation" has connotations of coercing universal participation within a set of geographic borders.  In a DAC participation and buy in should always be voluntary.

clout

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ongoing funding through share dilution is the same thing as taxation

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Offline Troglodactyl

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Many of these can coexist, so you can approve multiple options.