Blurring the lines of debt/equity and salary/options. Investor contributions in the treasury act as an investment, but also as debt. TPTs paid to employees act as both guaranteed salary, but also options.
Enables OCOs to be more ephemeral, if needed. If an OCO launches and experiences little success or traction, all parties can walk away relatively unscathed; investors get most of their money back. Liquidation is fast and programmatic. This allows for accelerated iteration and testing. This is very dissimilar from existing investments which failure usually leads to a total loss for investors. Low barriers to OCO launches + super fluid workforce + instant liquidation leads to more ephemeral organizations.
Expansion from price-centric tokenomics to treasury-centric models. Price-centric models are appropriate for some protocols where the token provides a utility. Protocols like ethereum or filecoin rely on intrinsic token demand to increase the price of the token– lots of people want blockspace or filespace, so they’re willing to pay for the corresponding assets. We might compare these to “consumable” assets such as uranium, copper, or carbon credits. There does not need to be a “balance sheet” or treasury to justify an appreciating price. As the industry matures, many OCOs will be treasury-centric and these industries
Clear equilibrium for long-term continuity of the OCO. Mid-term equilibrium occurs when the rate of TPT sales on secondary markets exceeds the rate of TPT issuance (only possible when prices on secondary markets exceed the price of redemption). This is considered a mid-term solution since token inflation (dilution) decreases treasury liquidation value per token. Long-term equilibrium occurs when the assets accruing to the OCOs treasury (i.e. revenues) exceeds the rate of TPT issuance + other expenditures paid from the treasury (i.e. expenses). This is definitionally identical to the long run equilibrium of a traditional business.
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