1/ I find it’s hilarious that people demand @SatoshiLite hold on to his litecoins, some even suggest locking his litecoins in a Trust. I’m going to explain why this is not a wise idea.
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3/ You have other things to consider if you’re already loaded, such as reputation or personal moral values. It might not be worth it. So Point 1: the effect of money works differently on different people.
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4/ Historically, using equity as incentive also created some messed up situations where CEOs lied / practiced financial shenanigans (eg: https://hbr.org/2014/09/profits-without-prosperity …) so that they can manipulate short term stock price for their own benefits.
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5/ We’ve seen the same phenomenon in crypto, many altcoin creators engage in heavy pump & marketing schemes, despite a shitty technical foundation. They don’t care about long term success, only short term gains.
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6/ So Point 2: having money as the primary motivator does not always produce the desired outcome. Even in the corporate world, the effectiveness of stock compensation package as an interest alignment mechanism is questionable.
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7/ Point 3: this is a decentralized movement, remember? Demanding some central figure to own coins so that the decentralized movement could live on... it’s quite ironic.
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8/ Point 4: even if having the creator owning coins is desirable, it is impossible to verify & enforce. Unlike stock trading, there are so many ways to acquire or unload coins anonymously & indirectly.
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9/ Charlie could have zero litecoins before yesterday. He could still own a million coins today. He could short LTC without touching his coins in the Trust. How the hell would you know?
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10/ Last but not least: There are better ways to align incentives than using money.
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11/ Why was stock compensation package necessary to begin with? because modern CEOs come from the outside & are typically not the original founders, so you need an extra motivator for them. But if the CEO *is* the founder, you don’t need an extra motivator.
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12/ Elon Musk threw his own assets into the businesses he created, risking bankruptcy several times. Why? Because he believes in his missions. No stock compensation package can ever come close to that kind of intensity.
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13/ It is the same reason why Buffett prefers to keep the original founders for the businesses he acquired. He knows it’s a tall order to replace them. Passion beats money when it comes to incentives. It’s just good business.
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14/ I support
@SatoshiLite ‘s decision to sell. Without a financial stake in Litecoin, Charlie can focus 100% on the long term success of Litecoin. Nothing can hold back the chikun now!Show this thread
End of conversation
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I learned a new acronym because of his thread
Thanks. Twitter will use this to make your timeline better. UndoUndo
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True, but
@satoshiLite sold 100% of his coins...selling 100% means he is DONE DONE DONE. He no longer wants to even think about crypto, otherwise he would have held a marginal amount. Intellectual curiosity will not be enough incentive to make large changes to adapt.Thanks. Twitter will use this to make your timeline better. UndoUndo
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