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What happens to all the bitcoins that are being sent in now if ethereum fails? In startups, investors almost always have a liquidation preference, which means t
by midas 12y ago
What happens to all the bitcoins that are being sent in now if ethereum fails? In startups, investors almost always have a liquidation preference, which means that if things go south they get their money back first (or at least what's left of it).
I haven't heard any mention of this and I'm wondering how this is structured? If the ethereum founders were able to fail spectacularly and still walk away as millionaires that'd be quite a perverse incentive structure!
- grubles 12y agoHere is your answer from Vitalik Buterin himself: http://www.reddit.com/r/Bitcoin/comments/2bssfx/ethereum_scam/cj8q962 http://www.reddit.com/r/Bitcoin/comments/2bssfx/ethereum_sca...
- midas 12y agoYikes! Thanks for sharing. It's a bad sign for the crypto community that the market doesn't demand better terms. You can debate price forever but nobody should argue for misaligned incentives. I'd prefer projects like this go one step further and destroy the bitcoin invested up-front. It doesn't make sense to do ex post (now in this case), but ex ante it signals a commitment to the new coin and a genuine bet on its future value. Full disclosure: I hold some bitcoin, so other people destroying theirs might benefit me ever so slightly :)