DAO Tooling CEO Says the ‘Regulatory Excuse’ for Tokens That Return No Value Is Going Away
By Unchained
AI summary of the source article
ScopeLift CEO Ben DiFrancesco stated that securities regulations are no longer a valid excuse for crypto projects to avoid returning value to governance token holders. He noted this shift brings increased scrutiny to teams that generate revenue.
Why it matters
DiFrancesco said tokens having to explain how they return value is “a maturation of the ecosystem” and framed the issue around economic security risks if a token's price drops below “what it would be worth to steal the assets that the protocol protects.”
Key facts
- ScopeLift acquired the Tally governance platform in March and rebranded it to Cactus in June.
- A September SEC staff FAQ indicated that a buyback announcement alone would not represent essential managerial efforts if the system is functional and has no central party.
- Investor Greenfield Capital asked Switzerland's foundation supervisor to review Safe Ecosystem Foundation's governance, seeking independent board members.
Source excerpt · Unchained
On Uneasy Money, ScopeLift's Ben DiFrancesco said protocols that can earn fees ought to have a credible plan for sending value to their governance tokens, which he said exist to provide economic security. The post DAO Tooling CEO Says the ‘Regulatory Excuse’ for Tokens That Return No Value Is Going Away appeared first on Unchained .