Babbitt column | Coin East, new species?

First, the currency east

Yesterday, an article suddenly became hot. The title of the article was called "East, New Species", and the author was the founder of the currency. The article is very good, you can go and have a look.

The article created a new word – "coin east." What is the currency east? It is the English stake user, which corresponds to the shareholder of the stock. The translation into Chinese should be “the stakeholder of the currency”.

Second, financial attributes and community attributes

The article said that "coin east" has two main attributes: the first is the financial attribute, and the second is the community attribute.

The financial attributes are well understood. Because of the blockchain technology, the currency is inherently equipped with a transfer function.

Community attributes mean that the stronger the community, the stronger the consensus on the currency, and the higher the market value of the currency.

But in my opinion, these two attributes are nothing new. For example, traditional stocks have financial attributes, and traditional Internet companies have strong community attributes.

For listed companies in the traditional capital market, stocks can be traded freely in the market. At this time, stocks have very strong financial attributes. Although stocks are often limited to people in a certain country, the coverage is certainly not as wide as Token, but the financial attributes of stocks may be stronger in terms of financial attributes alone.

In the Internet age, the word community has become very popular. For example, Xiaomi’s “rice flour” is a community. For example, WeChat public account and WeChat group are also communities. For example, the small and medium-sized shareholder groups of listed companies are also communities. They often gather in places like Oriental wealth. Discuss the company's development and stock trends together.

In this way, financial attributes and community attributes are really not new attributes. In fact, not only are new attributes, but “coin east” is still regressing in some aspects of financial attributes.

Behind the financial attributes of stocks, there are many rights and interests. The most typical ones are dividend rights, voting rights and recourse of remaining assets .

In other words, if you hold stocks and the company has a profit, it will pay you dividends every year; if the company encounters a major decision, you can participate in the voting decision; if the company goes bankrupt, the company's remaining assets are completed. After the other aspects of the settlement, you can get a part.

But for the currency East, these rights do not exist.

First of all, if the company is profitable, you can't get dividends. At present, all Tokens on the market do not have a dividend function, because once the dividend is involved, it will violate national regulations; at the same time, most projects cannot participate in the voting. There may be a small number of items that can vote, but the voting range is very narrow, for example, Super node. In addition to the narrow voting range, the voting content can not be standardized, that is to say, the size of voting rights depends entirely on the will of the project party; as for the remaining asset recourse, it does not exist.

That is to say, these three kinds of rights owned by traditional shareholders are not the same as the currency. So what rights does the currency east have?

The only interest in the East is to vote with your feet. When you are upset, you can swear a few words and then sell the coins to leave;

The only benefit of the currency is that when the price of the currency rises, the dividend from the rise in the price of the currency is enjoyed. (The price of the currency has to bear the loss) Of course, this also reflects the changes in the wealth logic of the blockchain world. In the traditional stock market, the entire wealth logic is based on the set of profit, income, and cash flow. Both valuation and dividends depend on these aspects. But these wealth logics have completely changed in the blockchain era, and there is only one wealth logic in the blockchain era —all of which includes the company’s revenue, profits, cash flow, intrinsic value, ecology, brand, management capabilities, etc. Everything is directly reflected in the rise and fall of the currency.

In fact, strictly speaking, the currency East is not a non-profit, although there is no direct, legally prescribed rights, but there are some indirect, personalized rights.

For example, the KEY holder of the currency, although you can not enjoy the dividends of the currency, but you can influence the income of others through the way of praise and point; if your lock weight is very high, you see a good one. Article, then you can give him a compliment, the other party will get a very high income; some people develop to use the trumpet to praise themselves, or sell the praise in the market for the yuan, is equivalent to the realization of this indirect equity.

Third, new species

Since these two attributes are not new, why is it that the currency is a new species?

It may be a little farther away, but from the historical experience, every development of the company system corresponds to an increase in the number of stakeholders .

  • For example, in the first self-employed household, the shareholder is one person, and the management and income rights are concentrated on one person;
  • Later, when there was a partnership, for example, a 10-person partnership, the management rights began to be complicated, the income rights began to be decentralized, and the proceeds were shared by 10 people;
  • Later, when limited liability companies and joint-stock companies emerged, the management rights were further complicated, and the agents with powers were the shareholders who delegated the power to the management, but the proceeds were still shared by all shareholders. At this time, the number of shareholders could reach 200 people. Also shared by these 200 people;
  • Later, when listed companies appear, management rights are further complicated. CEOs, boards of directors, and shareholders' meetings. Sometimes it is difficult to figure out who the company is, but the number of shareholders is undoubtedly rising, tens of thousands. Even companies with 100,000 shareholders are common.

What is the trend behind this? More and more ordinary people can be separated from the company's management and directly participate in the company's income distribution.

What are the benefits of doing this? The less you have to participate in management, the lower the threshold, the more people you participate in, the greater the amount of money you can gather to do big things, and the more developed the economy. If everyone needs to fully understand the company to become a shareholder, then there will be fewer people who can participate.

What are the deficiencies in doing this? With the separation of management rights and income rights, there are uncontrollable moral hazard and increasing agency costs. For example, in the current listed companies, the management of the company can make a number of regulations that are beneficial to them. There are many ways to use the company's funds, and ordinary small and medium shareholders have no way to exercise their power . The fundamental reason behind this is the mismatch between management rights and income rights. In short, it is the inconsistency of incentive mechanisms between the two sides.

The reason why the currency is a new species is that it promotes the evolution of the company to the next level: on the one hand, the common currency east is basically stripped of all management rights, without directly participating in the management of the company, even the voting rights No; on the other hand, all stakeholders are motivated in the same way, and can only be achieved through the rise of the currency price. Incentive convergence can eliminate many moral hazard and agency costs, thus generating new energy.

If the company's stakeholders have been expanded by an order of magnitude through the form of stocks, then the company's stakeholders can be expanded by an order of magnitude on the basis of Token or currency.

And quantitative change can cause qualitative changes. When the number of IPO shareholders of the company exceeds 200, we call this company a listed company. It is very different from non-listed companies, such as the regular reporting system, such as the management of the Securities and Futures Commission, such as the responsibility to the public.

When company stakeholders continue to rise by an order of magnitude at the level of listed companies, there are more interesting things happening. At this time, the company is not just a listed company, but the entire underlying economic logic begins to be open, or someone Call it the open source economy.

This open source refers to the company's code open source on the one hand, and on the other hand, the company's producers, consumers, investors, suppliers and other stakeholders are multi-integrated.

Fourth, the new attributes of the currency East

In traditional companies, the two attributes of financial attributes and community attributes are completely separate. The original financial property is pure financial property. It is difficult for ordinary shareholders to participate in the construction of the company. For example, some arms and nuclear equipment listed companies, the company's small and medium shareholders have not used the company's business for a lifetime, let alone participate. The original community attribute is purely community attribute, without any economic incentives, such as “rice flour”, community construction depends entirely on the enthusiasm and participation of users.

If there are only financial attributes, then everyone is a purely interest relationship and it is difficult to form an organic interaction;

If there are only community attributes and lack of incentives for economic benefits, then the viscosity of the community is difficult to guarantee and difficult to sustain.

If the two are combined into one, things will be different.

For example, for the currency east, its financial attributes are not the same as the financial attributes of the stock. The financial attributes of the currency east bring its own community attributes. The ordinary holders of the money participate in the construction of the community by holding tokens to realize the value-added of the certificate.

For the currency east, its community attribute is different from the community attribute of the Internet era. The community attribute of the currency east comes with financial attributes, and the community attribute with incentives and the community attribute without incentives are completely different.

For the currency east, although the attribute is still two attributes, its financial attributes and community attributes are organically combined.

Five, "coin east attribute" / "family attribute"

When financial attributes are combined with community attributes, a new attribute is formed, and a new concept is needed to describe this new attribute. Here I may call it "coin east attribute" or playfully called "family attribute".

"Family" is a pyramid scheme term. Isn't there a word on the rivers and lakes? – "Not my family members call my family, most of them want to lie to me."

However, there are no other better words to replace, so the "family attribute" will be used first.

Traditional community attributes are like friends. Most of my friends are nodding, and the gentleman's friendship is as light as water. There is no interest relationship between them, and some are more of the same viewpoint and the same hobby interest. Maybe I talked today, and I won’t talk anymore if I don’t have a common topic tomorrow. This “friend attribute” community, because it does not involve economic interests, will be slightly less sticky and difficult to sustain.

It's like a car home. If you haven't bought a car or just bought a car, you will often go to this website, but you won't be able to go back after you buy it, because the demand is weakened and there is no other interest.

Traditional financial attributes, because the interests are too clear, just like a colleague relationship. Everyone gathers because of their interests. When the interests are big, they have strong cohesiveness. When the interests are small, they have little cohesiveness and even fight each other. There is not much emotion between them. Moreover, the relationship between colleagues is easily limited to work, and there may be no intersection outside of work, and it is difficult to extend to all aspects of life.

In contrast, the currency with both financial attributes and community attributes seems to have the same relationship of friends and colleagues, or use the above statement to be like “family”. There is both a relationship of interests and a life in the family. The relationship; there are frequent economic exchanges, more is to live together; have difficulties to help each other, have fun to share.

This “coin east attribute”/“family attribute” is the organic integration and sublimation of financial attributes and community attributes. It can make the relationship between the currency east more viscous, cover a wider range and last longer.

6. The currency east exceeds the shareholders

According to our above statement, the number of currency East exceeds the number of shareholders, which is basically a matter of course.

On the one hand, by deconstructing the original stock financial attributes, the administrative authority involved is removed as much as possible, and the number of participants is increased by an order of magnitude;

On the other hand, through the incentives of tokens, the interests of all stakeholders are aligned and a synergy is formed;

At the same time, the increase in the number of stakeholders has resulted in a qualitative change, turning the original closed economy into an open economic system;

The multi-faceted evolution has made the currency east become a new species, and a new business paradigm has emerged.