The numbers behind what many Asian #crypto exchanges are pioneering with profit sharing & trade-driven mining via a native token are stunning: medium.com/zkcapital/how-… (h/t @wheatpond)
On one hand, these native exchange tokens are brilliant as a way to incentivize users & create clear dividend for hodlers, making them (relatively) easy to value.
On the other hand, examples like the CoinEx team, where their $CET stake increased by $700M in 15 days due to an announcement around profit sharing / trade-mining, makes me worry.
I have nothing for or against CoinEx, as I know very little about them. My point is wrt the massive power of this model to juice an exchange’s balance sheet, or in less savory situations, enrich the owners.
Lastly, these tokens are almost certainly securities due to the implicit cash flows, though if they are meant “for use” & the systems beneath them are “decentralized enough,” do we have yet another grey zone? Let’s see if anyone in the US tries this model (or has already?)
