In case you follow the Crypto Universe news, you may have seen the article about STRONG by StrongBlock at Decrypt (link). This article tells the story of a bunch of ex-Block.One executives (the company that launched EOS), launching the next big thing in DeFi land. The team's goal: "To make DeFi more secure on Ethereum."
Please don't ask me if StrongBlock (link to company website) is indeed the next big thing, or if they can indeed make a more secure DeFi service, and if they have something unique. I'm not the right person to ask. I started sniffling at DeFi a few weeks ago. Have seen the crazy token price increases. Have seen (almost in realtime), the token launch of Uniswap. But I still don't understand much of it.
This post is not about DeFi, but about a passage in the mentioned news article at Decrypt. A passage describing how the tokens are distributed, and in more particular tokens in combination with founders and executives of this new StrongBlock company.
published by Shutterstock / I know I know, a misleading image (source)
Moss said that StrongBlock doesn’t make any money from the protocol and that there is no corporate treasury; instead, it makes money from its consulting work, as well as from other projects and protocols.
There are 10,000,000 STRONG in existence and it’s not possible to mint any more.
2,419,615 STRONG are allocated to StrongBlock’s shareholders and 2,477,702 STRONG are allocated to its founders and team. A third of this STRONG is available upon launch; the protocol will slowly release the rest over the next two years. A further 352,683 STRONG are allocated to its future team.
My head is spinning. First to state the company doesn't take any earnings and has no stake in the chain; Super Cool! And then the information the shareholders and founders pocketing almost 50% of all tokens! Damn!
I really wonder if this Moss guy mentioned this only after he was asked about token distribution.
Moss had to downplay the massive distribution to the shareholders and founders...
“We are not distributing STRONG to shareholders and [the] team. They are held in locked wallets, and allocated based upon demand. There is zero possibility of shareholders and team dumping,” said Moss.
Owwww, ok! So, yea, no massive dump. Cool. But you guys worked all at Block.One. Then a year or two or whatever short time afterwards, you launch this project and give yourself 50% of the tokens for doing so. As quickly as you guys left Block.One, you may leave StrongBlock to start the next project in whatever hype will be next. Pretty standard for others in the industry; Many seem to move with race speed from project to project.
I do wonder why all of this is accepted in the Crypto Universe. I would think shareholders and executives should contribute to receiving ownership. I really wonder what their contributions are to StrongBlock. One must add a hell of a lot to deserve a 50% value cut of a decentralised, community owned chain.
published at Answers in Genesis (source)
The well known pyramid in the fiat world, with the richest people on top and the poorest at the bottom, is becoming higher and higher and thinner and thinner the more we move further into the Crypto Universe.
all images by edje unless stated otherwise