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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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
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Can’t tell if you’re being ironic here. This is precisely why the lock up is necessary—long term financial alignment. A time locked smart contract with a large % of his net worth would’ve been the optimal outcome.
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