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Decred In Depth – Ep. 3 Joel Monegro – Placeholder Capital DCR Investment Thesis + Governance



welcome to D credit depth your source for all things to quit I'm your host Angelo and on today's show I'm interviewing placeholder VC partner Joel monegros Joel is currently managing placeholder VC with partner crisp Ernestine I hope you enjoy this conversation as we dig into the crypto VC model and placeholders investment thesis for decrypt this is decorative depth my name is Angelo I'm here with none other than Joel Monet grow of placeholder BC Joel all you doing I'm doing fantastic so let's get right into it um what is your background in Genesis into the cryptocurrency space so it it all started probably around 2013 I was into the minikin Republic where I'm from and I was working for the government there I was in charge of the department called the digital economy department and one of our mandates was to work on payment system reform and I had ended up there after there trying to get a digital payments company off the ground into the are trying to build stripe for Latin America and ran into a bunch of obstacles mostly due to the disintegration of the financial system in Latin America which makes digital payments very difficult so I ended up at the government after that company didn't work out and I'm trying to figure this problem out and realized that we have this kind of structural issue with the financial system started looking for a technological solution to that problem and bumped into Bitcoin and blew my mind did a bunch of work on it after a year I got tired of working for the government and I came to New York to work for Union Square Ventures where I focused on crypto pretty much full time nice Union Square Ventures that is Fred Wilson correct that's right got it so now and a bunch of other people but fred is is very popular yes so now you're a placeholder with Chris that's right I want to go into a little bit about what you guys do exactly absolutely so I joined you as being 2014 which is a venture capital fund and I was there for three years until 2017 when the crypto markets were really starting to heat up Chris joined a firm called arc invest also in 2014 which is a a public asset management firm they they manage technology ETFs under Cathy wood whose Chris's former boss and one of our investors had placeholder and Chris came up more in a public markets environment in technology but public markets investing I came up in venture capital which is private equity we don't really deal with public markets all that much but in 2016 when Chris and I met we started to see this convergence in crypto that we had these early-stage teams early-stage companies launching these new kinds of networks with assets that were trading in markets and so it was this kind of hybrid between early-stage venture risk and public market investing in a way so Chris and I formed a quick friendship and our skills were very complementary we had the same conviction about the assets the the crypto assets that we were building on on blockchains and over over the year between 2016 and 2017 after we saw the wave of hedge funds start to come to market we realized that there was an opportunity for a venture fund focused on crypto and so that's why we started placeholder so how would you compare a traditional hedge funds to a VC hedge fund I think the the main difference there's lots of difference in in terms of fun structure in terms of how fund managers are compensated but the main difference I think comes from how the portfolio is managed or at least the difference that I think is most relevant to entrepreneurs and people in the crypto community a hedge fund is is pretty much designed to to trade actively and in some way and different hedge funds have different styles of investing and so it's hard to make a blanket statement but by and large a hedge fund is designed to be active in the market to be buying and selling and profiting from buying and selling and the other big difference is that a hedge fund is a more liquid structure for its investors meaning that investors in a hedge fund typically can pull their money at a certain cadence and they have a right to do that and so that means that hedge funds are a little more volatile and more liable to the whims of their investors a venture fund is is designed to make long-term investments and so a venture funds tend to use a structure called committed capital which means that investors who commit to a venture fund they commit for a period of time in our case 10 years and that's a common timeframe for a venture fund and investors cannot withdraw their money from the fund which really gives the managers of a venture fund the latitude to make long-term bets and when it comes to crypto it shows up in the way that we invest in the market we have never sold anything today granted we've only been in business for about a year and a half but we're designed to build large positions over time and exit them over time as well as opposed to buying and selling with market fluctuations understood now I know that placeholder is very selective with the projects that they invest in so how do you determine what projects are added to the fund so that's that's a mixture of art and science in it comes back to our identity as a venture fund it's we're a pretty small firm by headcount and the the number one thing is what do we want to work on mostly Chris and I and Brett Burnham who's one of the cofounders of us we use a venture partner at placeholder' we all came to this space out of an interest in decentralizing data wealth and power and that's the lens through which we see crypto and there's a lot of opportunities out there there's lots of things you can invest in and sometimes we pass on things that we like but we come down to what do we personally want to work on because then that dictates how involved we'll each get into each project so that's the number one thing that we look for and then the the other more kind of mechanical things that we consider our things like stage how much are we investing or how much is available to invest how do we construct the portfolio then that's more kind of on the fund management side but most of all we focus on the things that we're personally interested in because then that means that we'll be more involved in that project rather than just investing passively okay now let me ask you how is investing in open source projects different than investing in startups well there's there's a lot of differences that that we've observed just ratley's me moving from traditional venture capital to now crypto venture capital and the first difference is the liquidity of the asset in in traditional venture capital you invest in in the private equity of a business and you're pretty much locked in for five to seven years until the company gets acquired or it goes public here you you're investing in in a public acid which you can pretty much sell at any time you know depending on how you acquired it and that's completely new to me I was trained in a traditional venture model this is where Chris coming from a public markets training kind of adds some knowledge and insight to that to that difference but that I would say is the biggest difference what would be a potential exit strategy if a project was to fail or does not meet the expectations of the fund I don't know and and the reason I don't know and I say that would a smile on my face because it's what makes this job very interesting is that going back to that distinction between investing in or holding liquid assets and holding private equity is that in in VC your you're kind of locked in you know things either go to zero or you know they do fine or they do extremely well but it's actually a feature of venture capital that you can't get out of the investments and this often doesn't show up in the news but there's there's a lot of startup drama and volatility at the early stage investment investing and that doesn't really show up in the price of the stock of a company of a private company because you're doing fundraisers every 12 to 24 months and you know they're there's nothing that tells you in between that timeframe you know there's not that volatility that you see in crypto and so sometimes in venture you end up with companies that are doing really really badly for a period of time maybe there's some you know founder drama or some kind of company drama or some market dynamics but and you can't get out so you kind of keep supporting the company and then they turn around the ship and then they do really well that happens more often than people realize and so here I think one of the difficulties is maintaining conviction when you have a liquid asset and you can get out and so this is where our fun structure is very useful we don't have a pressure to get out of investments when they're doing poorly because of you know investors wanting to get out of the fund or because we want to increase our profits for the next quarter because that doesn't that's not something that is a factor in a venture fund so we really get the opportunity to sit down and go for the long haul into these investments and there's kind of a long winded way of saying you know I don't I don't really have an exit strategy we don't really have an exit strategy when when we make these investments we approach them as venture investors we we make every investment with as much conviction as we can gather and how are you valuing these crypto assets before adding them to place holder it depends and it depends on at the stage of which we're investing so if we're investing in an asset that or a network that is public and has been operating for a while then we can do a lot of work in understanding the fundamentals of that network and the fundamentals with that service and so our researchers here at placeholder' Alex Evans who focuses on cryptic anomic sand mario lau who focuses on governance will help us do a lot of due diligence and we'll investigate things like the community things like you know transaction volumes if it you know where applicable we'll get a general sense of the traction and then we'll we'll do it depends on on the investment we'll do different things to ascertain what we think the fair value of that network is we might run comps analyses we might run some fundamental analyses and so on in the case of earlier stage projects or companies where for example you may have a seed stage company that will release a crypto network in the future but you know it's 12 to 24 months out then you're running into more traditional adventure style investing where early on you don't know what the value of these companies are and so you you kind of price it at a seed stage valuation more that looks more like traditional venture capital and so there it depends on the quality of the team and you know the the size of the opportunity the conviction that you have on this thing to execute and so on and and what are some of the anxiety reducing qualities as an investor you look for in crypto assets well if you want to reduce your anxieties you shouldn't be a crypto investor I can agree but the number one would be team and there's a there's a lesson that I learned from from Brad which is when you're walking into uncertainty you want to walk in with people that you're certain about and so and then also when you when you pick the right team and it's people that that you like and that you have a good working relationship with you know when you step back it just makes it more fun it's just you know it's better and so even if it doesn't go your way you're still grateful and happy for having that experience and so it's almost always a good bet to bet on team and what are some of the qualities you look for within the team or the development team in the community so the first thing is is kind of table stakes is at tech talent and you you need it in crypto no matter what more than then in other types of companies perhaps and part of it is probably PTSD from seeing so many teams raised a ton of money without having the technical chops to execute and you know not wanting to be in that situation and so the first thing we we kind of have to make sure is that this team has the ability to execute and deliver on on what they're building the second thing is community and and you know that's that's a that's a broad term because it's there's the mechanical aspects of community man and you know how often do you communicate how often do you release updates that you engage with people on Twitter reddit or telegram or wherever your community lives but you also need something that's kind of harder to define that's more of you know more of a talent for community and that's where good leaders are very important people who can inspire large communities people who can create a following behind them and I think that's kind of why we see networks that have really strong personalities behind them succeed in the market because they're able to inspire that kind of reaction from people and so you have that in satoshi you have that in vitalik and so on now do you have any systems in place to support the teams of the projects that you're backing so not not much in the way of formal systems more than us the firm and part of the reason why we want to stay small and kind of focused is so that we can spend as much of our time working with teams on whatever comes up but the three main areas that we focus on are cryptic UNAM exponents and market infrastructure is where we're converging and for the earlier stage teams helping them design decrypt economics of a network helping them brainstorm around them and find holes and so on is a big part of what we do helping teams figure out the right governance structures it's also a big part of what we do and that one is not just things like protocol governance or community governance but also even in terms of how the team itself is structured what corporate structure that they choose do they have a foundation or not where do they incorporate which is a lot more mechanical and a lot more obscure but we get some economies of scale by being venture investors and investing in a lot of opportunities we get to see what works in certain scenarios and what doesn't work in others and often times you have core developers who really don't have any knowledge of corporate law or anything like that but the way they structure themselves and so making a big impact and then the final aspect market infrastructure is something that we actually de beauté it with deep cred and then added it to kind of our core work which is also another area where we get economies of scale via our relationships where we help teams build relationships with custody providers or exchanges or market makers and where we can kind of come in and leverage our relationships into space to help teams scale in 2016 you wrote your fad protocol thesis which you know goes into how the majority of the Internet's built on application layers now and you believe that protocols will yeah will take their place you want to go into that a little bit stores that are unaware so it it it's more of an observation than anything else and the observation that I made in that post is that the traditional web has these protocols that are that are crucial to the functionality of the web these are tcpi things like tcp/ip SMTP for email HTTP for web and so on that are very limited in their functionality they do one thing they do it well they move packets around in in predefined formats and they do nothing else and these kind of very thin protocols enabled all this innovation that we see that we've seen in the web and has created the world's largest companies which have built themselves into these kind of giant monopolies by way of monopolizing data largely so you've got Google and Apple and Facebook and Amazon and all those web companies that leverage these these very thin protocols but captured all of the value of those protocols the HTTP by itself has no real financial value of tcp/ip by itself has no real financial value but the entire value of the web writes on these protocols which are decentralized and we have these centralized companies on top the observation of fad protocols was that we're we're building a new kind of decentralized protocol with blockchains where the the data actually lives into protocol and this is different from the web where the data lives in the applications if you understand that data is really the the ultimate source of value for information services like Google or like D credit and so on then where the data lives determines where the value lives and because we're building new decentralized protocols using a blockchain architecture as opposed to just a communications architecture like we do on the web then it follows that most of the value gets captured at the protocol layer instead of at the application layer and you kind of see that with for example a Bitcoin wallet or a crypto wallet I can move between crypto wallets pretty easily and still maintain all of my data which in you know the financial use case it's my transactions and my balances and so on and that's different from other ways we interact with companies like Facebook where you can't really leave Facebook because they have all the data and so you're locked in to that user experience you're locked in to that application in a way that you're not locked into applications in crypto and that is the the key to the observation that value capturing crypto happens at the protocol layer more than it does at the application layer because there's less defensibility at the application layer because the data lives at the protocol layer no single application has monopoly access to the underlying data that is distributed via blockchain and that's not to say that there is invalid application later there's tremendous value at application layer I think coin basis of really an example of that of a very very valuable business that has been built at the application layer it just so happens that the protocol layer is more valuable understood now we know that D credit is one of the crypto assets that placeholder holds what is um well what does it what is it about the project that made it attractive to placeholder so our history with D cred actually precedes placeholder and this is going back to to that that I'm prior to starting to firm where Chris and I were spending a lot of time thinking and talking about crypto and we both became fans of dick read because of the the novel consensus mechanism and this was around the time that we were having the block size debate in in BTC and I wouldn't say that I was frustrated by the block size debate but I certainly didn't have a voice the you know I had an opinion but the best I could do was complain about it on Twitter on reddit and that was gonna have no influence whatsoever on on the decision and the idea that you could have a different consensus model where the holders of of the asset have have a have a right to participate in in in the development of the network that was very attractive and it felt similar to going back to the differences between venture and public markets you know you buy you buy some Amazon stock and you're a small investor you don't really have any you know rights or say in to how that company is run unless you you know buy a ton of that stock but in in venture were used to taking board seats and participating actively in the governance of a company and so this felt like a decentralized board and so that spoke to me as a venture capitalist now we know that D creds aim is to be a store value how do you see projects like Dec red and Bitcoin coexisting together in the space I don't really buy into the idea that there's there's only one store of value in the world and and that's it I you know you you look at at the economy today there's all kids there's thousands of different ways of storing value that coexist and that works for different use cases and have different profiles and they suit different people in different ways so you know to pick the simplest and you know probably worst analogies you have gold silver and bronze you know they coexist they do different things they have different production models they have different history's built around them and they work for different people in different ways but you also have different sites of the economy that for example you know capital assets are a different way of storing value and they they're backed by different kind of value mechanisms and so on or you know land or anything like that and so I think that there will be thousands if not more different ways of storing value in crypto and they will all coexist and there might be a power law that determines how much value is stored in different kinds of assets but I don't think we end up with one super asset that stores all the value in the world yeah I definitely agree with that what what are some of the the qualities within the D cred project that you find attractive the main one is this commitment to community decision-making which is something that Wendy credit came along this the idea of Unchained governance the idea of users being involved in the decision so the protocol was was pretty new and over the last couple of years we've seen that idea expand more broadly throughout the crypto market and there's a big debate about whether users really want to be involved in governance or not whether people are actually voting or things like voter apathy and turn it and so on and I care less about those things as more as as much as I care about the right to participate and you don't have to participate right you don't you don't have to do it you can just hold D cred and not really care about anything that's going on but but I think the most important thing is is that the credit is designed from the ground up from its constitution up as a network that enables user participation and just having that right is is an important one so now as the project grows I feel like that's going to be the time when it's governance mechanism is really to be tested the project is still small and it's still growing so how do you envision institutional players playing a role in de creds governance system when that time comes we're trying to figure that out because we are an institutional investor in indie cred and we we own we own a bunch of de cred which not not too much but you know we're a dolphin I think is the the term and I don't know that that were quite whales maybe we are but but you know we own and a lot of D cred relative to the to how to the resource organization yeah and so we have we have a disproportional amount of voting power and so you know with great power comes great responsibility and we we haven't voted yet we started participating in staking this year in small amounts we started a project with coin fund where we set up a deep ruts taking pool called grass fed and there we we set up something that we consider kind of institution already staking and and the main reason is you know as an institutional investor you have more responsibilities and so we want it to do business with a staking pool that that we know whose people we we have good relationships with as opposed to an anonymous taking pool so we we started working on that to precisely kind of figure out this question of what's the right level of participation and now that we have Mario on the team getting more involved in governance research we're gonna spend more time on politie voicing our opinion and I think there's there's things where there's there's kinds of issues where it's probably best if we abstain from voting something that's really contentious or something that you know may be a little controversial especially we have a big boat and then there are things where it may be warranted for us to come in and be a tiebreaker and so we don't did the short answer is we don't know the longer answer is we're trying to figure that out would you consider deke red as a uncertainty hedge for investors because I feel that upgrade ability and adaptability is currently under priced in the market with so many unknown challenges ahead yeah so I I'm gonna twist that and I'm gonna reframe it as you know what is it what is it for users more than investors because at the end of the day you know investors drive liquidity and value through the network and help sustain the network but what determines ultimate success is its users and in a way you can flip that around and think of it as a certainty hedge for users because of the governance model one of the things that makes you know the United States great or has made United States great so far was that there was this distrust in the way that the system was run distrust in the governance model of the United States which made it a very attractive place to do business which made it very attractive place to to participate in in this economy and now we're starting to see how when that trust model gets challenged then it has all these ripple effects in the way that people feel or the way the level of participation that people wish to have in the economy similarly for deep red I think that because it has such a well-defined governance model that defines the rights of the different participants so well and encodes them into the protocol and has this commitment to user participation in a way it gives you certainty of how the network is going to function and how the network's going to evolve and I think that's going to drive usage to the network over the long term as people make decisions about where they want to build and where they want to participate I could see it that way too so let's see after being involved with a project so long what are some of the holes that you see in the project or maybe some long-term concerns that that you have with the credit I think that we we may be in for some growing pains on the community side and as you mentioned earlier the project is still young still pretty early and we're still in the process of rolling out all of these governance mechanisms which are quite mature but we were still for example I know that there's a vote on Polytech going on around completely centralizing the developer pool which is a big deal because it puts it 100 percent and it's a huge user yes and so we we were rolling out we're kind of completing the governance stack of D credit as we speak and then the reason it's a huge deal is because first it's important and second it means that the project is now almost completely at the whim of the community and I think that something that we haven't worked on as much in the decrypt community is community standards and community ethics and what is what is our identity as a community how do we communicate and creating kind of a cohesive personality for who we are and the reason you know the reason we don't have that yet I think is one it's still small right and so it's easy to have an identity when you're small but as the network grows it's going to be harder to maintain community cohesiveness and there's this more from the traditional venture capital world a really good piece of advice for companies that are growing very quickly is don't more than double your team in a given year because then you end up with more new people than old people and so that can that can make the culture of the company hard to manage in a network you have the same dynamic any period of time where you have explosive growth you will end up with more new people than old people and so the culture is going to be affected by that and if you don't have a strong kind of set of Community Guidelines on behaviors that kind of create rails in terms of houses this community behave then you can have some issues and so I think this is an area where at the decrypt community has to invest a little bit in making sure that we communicate appropriately with each other that we behave appropriately with each other yeah it definitely goes back to the stress testing we're gonna have with growth the end well we're gonna see you this experiment really plays out and how well build the governance structure is so now let's flip that question mom what are you optimistic about when it comes to Detroit's future the thing that I'm most optimistic about indie cred is the governance model and the commitment to user control and community control and I think that as the platform grows and users come to the platform and developers come to the platform there's a there's there's a different trust model that I think is going to enable certain kinds of applications and so for example you look at something like politeia which is today used to manage decrypt the project politic itself is actually technically very flexible and simple so you could run other instances of politeia for other kinds of things that may or may not be other crypto networks or other kinds of communities and so this kind of going back to the analogy of the US government as or you know that model being really conducive to good business I think this governance model is going to be conducive to to good governance applications and the second thing is the quality of the core team I think out there in the market D crit has one of the absolute best protocol developer teams in the world I think they're undermined absolutely you know I spend time undervalued correct yes yeah I spend time gathering articles and trying to educate some of the history of conformal systems and we're Jake and Dave Collins came from and even recently I know Jake is gonna appear on Laura shin soon and she had she kind of questioned if Deak red was gonna come on the show and I was like hold on they get some it's someone missing a piece of history here it's like do you not know where they came from and the work that they did with BTC and yeah so they're amazing yeah they're had absolutely incredible Joe going back to what you were saying with the growth of the community and it being one of your concerns if you want to elaborate on that a little bit more and going to how you see the growing pains of the processor so you know right now it's kind of easy to manage the decrypt community because it's relatively small but I think there's a risk that we may be under investing in community rules and guidelines and setting kind of a personality of the decrypt community that that people can kind of use as a guideline for how to how to communicate with each other and how to talk to each other and how to have discussions and the reason is going back to this idea that you you will have periods of time where lots of new people are coming to the project and a you know you want guidelines so that they know how to behave and they know how to how to participate in a way that's useful but also for the current community to be able to welcome those people in a way that's favorable and in a way that embraces new users as opposed to alienate them and it's not that that's going on in indie cred per se but you know one of the things that I think we should we should be working on is how do we handle proposals that come in to pollute a new users from new people that are excited and I have seen examples here and there of people who come to the network with good intentions and you know make a proposal that may honestly not be a great proposal but I have seen parts of the community kind of be rather hostile to to that as opposed to constructive about it and so it's kind of tough because you know it's it depends on the situation and there's people who come in that you know are just not great and or disparaging and so you know and that's bad but you also have a lots of people with good intentions that come in and and may leave with with some kind of disappointment about how their thoughts and opinions are handled so I think that's that's an area that we could we could be spending some resources on what would that framework look like so if you look at any any large web community like Reddit as poorly as that may be perceived as being managed or hacker news or Quora even or things like that or Stack Overflow there's there's a strict set of community guidelines so how do you speak how do you comment what are things that you can and cannot say and the reason this is this is really difficult is that one of the biggest principles indie cred is you know the right to free speech and First Amendment and you absolutely do not want to alienate that so you know what you can and cannot say it will be controversial but it's more about how you say it and so you know I think that if we can work towards a set of community guidelines that it's not about censorship and it's not about you know infringing upon people's rights to free speech but more about kind of the the ethics and behavior of how we communicate with each other I think that would be a good investment to make so this is great that you brought this up because I at times speak out to certain community members and there are behaviors that I find in poor taste it's part of the best way I could describe it so one of the most attractive things to me about the project is that the project leads are silent they don't pump they really don't have a voice they just do the work you know and some of the behaviors that I find unattractive is when whenever there's a moment where there's there's a certain situation where deke red shines over another project and then that's put in people's faces mmm it's almost like remain humble we may have qualities over another project but there's no need to go out and put that out there I believe it that creates mm-hmm just not the kind of energy or behavior that yeah that is wanted or when there's times where we attack a maximalist right you know it's almost like there's just like what we discussed before there's gonna be more than one store value yeah so so I believe that the way that we should speak is by delivering and that's one of the most attractive things about the occurred because we do that you know we have dates we have our roadmap it may take long for some things to come into place but we've delivered every time so far yeah yeah there's um you know there was a case of a proposal that it was made and I forget what the what the specifics of that proposal was but it was by a new community member who who was kind of pretty reputable outside D crit right just to make a generally a person with with a successful career and you know who's been encrypt enough for a while etcetera who made a proposal and one of the comments was well I'm not gonna back a proposal by someone that I don't know and it's like well the whole point of Fallot eya is to enable anyone to come in and participate and so I think that we we can invest in the on-ramp for ideas because you you don't want a situation where someone comes in is new doesn't know a lot of people but has a good idea and then gets shut down by the community for kind of arbitrary reasons there should be an acclamation process though like they should come in and interact with the community yes and build a reputation yes amongst the community before even proposing and that's something you can put in the guidelines right like that is exactly I think the guidelines is an excellent idea Richard read could definitely tackle it so now I'm gonna get into the D credible proof section and this is a set of statements some questions that I gather from Twitter and kind of put together and I want to get everybody's take that I interview on these to see what they face right I'm off Twitter so this is this will be fun for me perfect so if decreed was to fail what would be the cause of its death growing pains under community sign I think hmm so some say it's good for it to be difficult to make changes to consensus decreed does nothing special other than draw focus to a specific activation method baked into the protocol layer which can be ported into any other project your thoughts that's probably correct but I think it undermines the actual value of that activation mechanism you know I don't think it's a small deal I think it's a big deal hmm Bitcoin launched without a pre mine all other projects outside of Bitcoin are built around the financial interest of their creators which is an issue I see I mean I so it I don't see don't see anything wrong with that that sounds like it was tweeted by a maximalist most of you boy but so I think all projects are kind of created around the financial interest of their creators so I think that's that's probably true perhaps with the rare exception of Satoshi which we don't know bitcoin is not a scam yet yeah we don't know taken from crateros you know but I'm a venture capitalist which means that I'm a capitalist which means that I invest in things and companies that are created out of the financial interest of their creators I don't I think that's a feature of capitalism not a bug now the criticism I think is geared towards projects that set up the economics unfairly in favor of the creators or scams and things like that whereas wrenched open dumps etc and those are absolutely deplorable but I don't think there's anything wrong with people embarking on ambitious ventures with a financial interest of for themselves as long as they created in such a way that also creates a lot of value to the world and I think that's fundamentally the way that capitalism is set up there's a bunch of issues with capitalism that we don't have time to get in but by and large it has been a net positive for society and I think that that's that's a key feature the fact that people can go out and do things for their own financial interests that end up creating a lot of value I personally find the value and leadership and transparency when it comes to that and I believe D crit has yeah those two plays and you if you if you have a good leader you want them to be incentivized right you want them to agree you so to me it's less about who has the financial interests I think every one of the best features of crypto is that in these networks where you have these crypto assets circulating everyone can participate in the financial interests the set up matters more and this is why I say that we focus on crypto Canova can governance corporate economics and governance because part of governance is the set up of the team and who's incentivized for how long to do what you know how the lockups work and things like that so to us is more about how how its distributed more than people having a financial interest there's nothing wrong with that so here we agree so here we have another statement people will invest in things that make the world better whether it be time or money they will invest you don't need a dev fun embedded into your protocol to incentivize development making the world a better place is a pretty strong incentive yeah just making the world a better place is not gonna put food in the table you know think that we have had so many examples of networks who for various reasons at different points in time have had funding problems and have struggled with now you know it's kind of tough because you have you have a lot of nuances there like you know you have teams who raised a bunch of money and then there was a crypto crash and then they lost all that money and they had to figure out how to fund themselves and things like that so you know I think that having a sustainable model for continuously funding development is a good idea and you know going back to that statement the incentive is to make the world a better place but you know you got to pay for that somehow and I think that that fund gives us the opportunity to make sure that we can always fund growth and development and that we can have full-time people working on these things as opposed to you having to have a job elsewhere and then you know do something on the side give me your closing thoughts and a message to newcomers and potential stakeholders I would say spend time reading the documentation the end and the reason I say that is because for example very few people know that the credit has the Constitution and and it's an amazing document and there's votes was just revised I know and you know when you when you spend time reading the documentation and then you know just poke around pull it a and just poke around the way decisions are made and the way the community is managed and and I think it's I think it's very inspiring because it's it's it's still rather small but you know when you when you read all the stuff and then kind of sit back for a couple weeks and digest it it it turns out to be a pretty big deal well Joe thank you for coming on the show and taking the time Thank You Angela

One Comment

  1. Todd Maki
    Todd Maki July 12, 2019

    Good interview, thanks for the content.

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