In today’s internet, there is clear incentive misalignment. Users who play the critical role of bootstrapping and sustaining networks are rarely compensated and have little say in product direction or company governance. Furthermore, employees are locked into unfavorable terms for their equity and private investors dominate startup cap tables.
Thought this was a pretty well-reasoned take on the actual advantages of token equity, well done. None of this needs a blockchain, but there does look to be a hole in the equity markets for this structure.
As an investor, I do hesitate to buy this type of token, probably out of naivety - when I buy a SEC-regulated stock I have tons of legal protections against bad corporate behavior (e.g. insider trading). Do such protections exist for tokens?