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This relies on - and takes advantage of - a lack of understanding on how these organizations are able to operate Drop all the currency terms and what you have
by rolltiide 7y ago
This relies on - and takes advantage of - a lack of understanding on how these organizations are able to operate
Drop all the currency terms and what you have is a product, a consumer good sold to the public that some employees are given. The employees are free to sell in parallel to the organization selling it.
When that runs out the organization still has 100% share ownership
So THEN it gets put on the same lower level of flexibility as startups and all private tech companies.
So the answer is not that hard: it issues stock options to founders and employees when the product sells dry up. This is not funding just incentivizing, which the article and crypto industry conflates.
The organization and founders have been funding themselves by exchanging the product for cash. LOTS of cash, for years.
The organization has an unknown amount of cash REVENUE from simply selling Zcash from their treasury+mining, this is done on the open market
- deleted 7y ago[deleted]
- evian83 7y ago"A new lawsuit is sorely testing the Zcash Founders Reward model" https://www.finder.com.au/a-new-lawsuit-is-sorely-testing-the-zcash-founders-reward-model https://www.finder.com.au/a-new-lawsuit-is-sorely-testing-th... "Ex-Employee Sues Startup Behind Zcash for $2 Million Over Unpaid Stock" https://www.coindesk.com/ex-employee-sues-startup-behind-zcash-for-2m-over-unpaid-stock https://www.coindesk.com/ex-employee-sues-startup-behind-zca...
- rolltiide 7y agowhat point are you trying to make? OP's article isn't talking about the incompetence of ECC in making a stock option plan.
- deleted 7y ago[deleted]