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PaperImperium
DeFi & economics.. Opinions don’t reflect those of @labsGFX. “Like the Hindenburg Research of governance” & “enemy #1 but he makes some good points”
Single guys should bookmark this.
I gave my now-wife a lame joke every day. Now she doesn’t expect it of me, so I can get away with just doing one on work days.
Here’s your starter pack:
What’s brown and sticky? 💩
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A stick.

Sandy Petersen 🪔18 hours ago
Want to know the secret to a woman's heart? Digital games teach us that the way is to find something she likes, and give her exactly one of that thing every single day.
Also keep an eye on her progress bar. Once it maxes out, you never need to do anything for her again. Women, back me up here.

54
>Tokens are often bottom of the cap stack.
🎯
The problem comes from founders suggesting otherwise to token holders that have never heard the term “cap stack” before. It leads to wildly mismatched expectations, and not even a document to point to where it was disclosed.

Jeff Dorman13 hours ago
I'm in the minority on the Axelar / $AXL "tokenholder's have no rights" debate, but I don't think this is a big deal.
Companies finance themselves with different parts of the capital stack, and some are more senior than others.
Secured debt > unsecured senior debt > sub debt > preferred shares > equity > tokens
There are hundreds of examples of one class of investors getting harmed at the expense of others.
In bankruptcy, debt holders win at expense of equities.
In LBOs, equity holders win at expense of debt holders
In take-unders, debt wins at expense of equity holders
In strategic acquisitions, usually both debt and equity holders do well (but not always).
Tokens are often bottom of the cap stack. It doesn't mean they aren't valuable, and it doesn't mean you need "protections" per se. We are simply learning that when you acquire a semi-worthless company with a mostly worthless token, you don't get a magic payout as a token holder. The equity wins at the expense of the token.
We've yet to see an acquisition of a good company where token holders get nothing. I'd imagine if an acquisition happened of a good, growing, successful business with a token that has proven valuable, then there would be some compensation for token holders.
There are lots of assets that do well in good times, but not in bad times. Stocks are great investments when a company is doing well, but they are awful investments when a company is not doing well.
Tokens have little to no value in M&A... ok. Adjust accordingly. Just like equities have little to no value in bankruptcy even if the company was funded via equity.
On the flip side, an equity value can literally go to $0 as dictated by a judge in a bankruptcy, whereas tokens can retain some magical "hopium" social value even if the underlying company goes away (i.e. $FTT still trades) because you can't actually legally kill a token.
So we're leaning that tokens can have tremendous value in a company that is growing and using cash flows to pay down the tokens (i.e. $BNB, $HYPE, $LEO, $OKB, $PUMP), and do horribly when a company struggles and becomes a forced seller to another entity.
You don't need rules and regulations to recognize that. Back good management teams and good projects and this isn't an issue.
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