Is $ARB registered as a security? If not do you think it would be a good idea, and if so how would that even be done? If its not a registered security what will happen if SEC finds out? Do you think the price will go up, or down, or no change maybe?
$ARB token only purpose is governance, you should not buy/own any $ARB with the expectation of profit, therefore it’s not a security.
what is the purpose of participating in governance if there is no expectation of profit?
As a side note you seem to be predicting $ARB going to $5 on twitter. So not sure if you are aware how on one hand you are saying $ARB should not be held with the expectation of profit, but on the other you are like its going to $5, is a bit of a discrepancy.
I have taken the liberty to screenshot and share the tweet for the convenience of visitors in the thread, but also in case you decide to delete it while the thread is active. Have a nice day.
Not everything has to have a financial incentive.
Not sure I’d call my shitposting/memes a prediction lmao but hey, you’re free to interpret what you want and don’t worry I don’t delete tweets
I don’t see a discrepancy, since whether I trade $ARB or not, it doesn’t change the actual (and ONLY) purpose of the issuance of the token: governance.
You seem to imply that the purpose of governance is not to profit. But then what is the purpose of it
Why would someone participate in the governance of Arbitrum if there was no expectation of profit? What would the motivation be?
Governance plays a critical role in ensuring the success and sustainability of projects and effective governance can help build trust and confidence among users that is using the chain (Arbitrum), which can ultimately drive adoption and growth.
Cryptocurrency has the ability (in my view) to disrupt the current finance world and create wonderful new things. You, by holding or delegating your $ARB is a part of that.
fyi I think yonathan is lowballing it with $5, I’m thinking $10-15 if we start conquering the other chains.
okay cryptonick and what is the purpose, currently, right now, of holding ARB? Other than LP’ing a falling knife or lending it so more people can borrow against it and short it for profit? I’m just really curious what the current usecase of ARB is. Plz get back to me.
Governing public infrastructure is a public good. The infrastructure that powers our ability to communicate and transact in the future should not be owned by one entity.
I view community governance as the only way to ensure public utilities remain credibly neutral.
The way I would govern would be to draw Arbitrum to be sustainable using a Triple Bottom Line mentatlity. This doesn’t necessarily mean number go up. It could mean fairness, sustainability, and minimization of externalities go up.
However, you can choose to use your governance to push for whatever future you would like to see.
You’re purely looking for a for-profit-propose. Read what I wrote.
Okay but what governance is being done now and has to be done? Offchain labs gave 50% of the coin out didn’t they? How are the coins being used, as of right now, to do governance?
I assume you wanted to quote me:
DAOs are able to solve the principal-agent dilemma through community governance. This dilemma arises when there is a conflict of priorities between a person or group and those making decisions.
DAOs eliminate the need for trust between two parties as only the code needs to be trusted, and stakeholders are incentivized to act in the best interest of the network. Offchain Labs’ decision to give 50% of the coin out does not impact the governance being done or what needs to be done. The DAO started what… a week ago and you’re already questing the entire structure?
Of course I’m questioning it because there is no structure to incentivize voting right now. We have a mish-mash of propsoals so far with twitter influencers already ccoming here and suggesting we become a VE system voting on pools with with LP tokens, bribes, and ARB itself or some combo of those options. DAOs do not, by and large, work and are not profitable unless there is an increasingly solidified construct of how to drive adoption/upgrade milestones down the road. All the protocols on arbitrum were working find before the token dropped and they will work fine after they drop. As of right now, 5 days after the token launch, I don’t see the point of the token right now. I want there to be a point to the token, like, for example, locking the token like you can do on other protocols but you can’t even do that right now. Who is going to build that structure out if it’s even going to get built out?
Then why not just sell your $ARB and go all in on GMX?
This is not legal advice. I’m not a lawyer
To avoid confusion, expecting a profit is different from guaranteeing an income stream or ownership interest. The former may not be a security, specifically an investment contract, the latter definitely is.
If you want messy details, search the Howey Test and read deeply.
If Arb promises to pass along X% of transaction fees to to token holders, that may put you in a bad spot with DOJ/SEC/CFTC. As things stand, all is hunky dory.
If you want to read bogeyman stories, this will keep you up at night. Basically CFTC taking position that voting in a DAO could make you liable for any transgressions of the DAO.