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> with zero fees via Facebook products including Messenger and WhatsApp reminds me of the classic "If You're Not Paying For It, You Become The Product" edit:

> with zero fees via Facebook products including Messenger and WhatsApp reminds me of the classic "If You're Not Paying For It, You Become The Product" edit: the prototypical crypto (bitcoin) has fees as the final (after there's no more new btc) incentive for miners to process transactions. but this doesn't? probably we'll have to look at their white paper but if Facebook is the only actor running this network why make it a cryptocurrency at all?

decoyworker 7y ago
You're not off the hook if you pay either. Paying for something doesn't necessarily mean you aren't the product.
peteretep 7y ago
> if Facebook is the only actor running this network why make it a cryptocurrency at all? Marketing.
elliekelly 7y ago
> but if Facebook is the only actor running this network why make it a cryptocurrency at all? They're selling a seat at the governance table for $10 million. I suspect in an effort to put this new token in the decentralized/not a security bucket the SEC views ETH. That allows them to avoid registration and the enforcement headache Kik is currently dealing with. Quite clever on Facebook's part. Zuckerberg is smart enough to give up a bit of control and toe the line ("decentralized"... among his Wall Street friends) rather than retain complete control and run head-first into a regulatory brick wall. FTA: > Facebook is in talks to create an independent foundation to oversee its cryptocurrency, The Information reports. It’s asking companies to pay $10 million to operate a node that can validate transactions made with its cryptocurrency in exchange for a say in governance of the token. It’s possible that node operators could benefit financially too. By introducing a level of decentralization to the governance of the project, Facebook may be able to avoid regulation related to it holding too much power over a global currency.

decoyworker 7y ago

You're not off the hook if you pay either. Paying for something doesn't necessarily mean you aren't the product.

peteretep 7y ago

> if Facebook is the only actor running this network why make it a cryptocurrency at all? Marketing.

elliekelly 7y ago

> but if Facebook is the only actor running this network why make it a cryptocurrency at all? They're selling a seat at the governance table for $10 million. I suspect in an effort to put this new token in the decentralized/not a security bucket the SEC views ETH. That allows them to avoid registration and the enforcement headache Kik is currently dealing with. Quite clever on Facebook's part. Zuckerberg is smart enough to give up a bit of control and toe the line ("decentralized"... among his Wall Street friends) rather than retain complete control and run head-first into a regulatory brick wall. FTA: > Facebook is in talks to create an independent foundation to oversee its cryptocurrency, The Information reports. It’s asking companies to pay $10 million to operate a node that can validate transactions made with its cryptocurrency in exchange for a say in governance of the token. It’s possible that node operators could benefit financially too. By introducing a level of decentralization to the governance of the project, Facebook may be able to avoid regulation related to it holding too much power over a global currency.