Employees can earn guaranteed USD salaries and equity-like upside. This is the holy grail for every enterprising person who wants to work for equity but does not enjoy the benefits of having a substantial financial safety net.
New tokens primarily enter the ecosystem through contributors rather than speculators. Since a bulk of new token issuance will result from the cycle of TPT issuance and secondary market sales, the individuals who benefit most from token appreciation are those who have a vested interest in the OCO, rather than short-term mercenaries who benefit from other types of token-issuance mechanics.
Token holders have long-term incentives. Since TPTs and IDTs lose optionality upon transfer of tokens, the recipients (primarily investors and operators) have incentives to hold rather than trade.
Investors enjoy enormous downside protection. Thanks to low-friction programmatic treasury liquidation, investors can recover a portion of capital if the OCOs do not show great promise. This will decrease the barriers for investments and increase the rotation of capital into new ideas.
OCOs gain material strength during market exuberance. During high price periods, TPT holders will sell their tokens on secondary markets above redemption value, which re-charges the treasury to issue more TPTs. This increases the OCO’s runway.
Treasury-centric models incentivize growth of treasury and “cash flows” instead of token appreciation. High prices are not sustainable without the creation of additional value.This incentive structure optimizes for value creation.
Opportunistic fundraises during market exuberance. During market euphoria, OCOs may choose to sell tokens on secondary markets to stockpile unburdened assets.
Opportunistic token buybacks during market depression. If the market cap of the OCO drops below the liquidation value of the OCO, the OCO may choose to purchase and burn tokens to increase the per-token liquidation value.
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