Does the reverse IC0 model work? Arweave, a decentralised storage platform, has launched a "token for sharing" scheme

Rhythm BlockBeats news, decentralized network service platform Arweave recently launched a new "tokens" of profit distribution plan, designed to help developers in their development of application, the application once launched, unable to make changes, while the stakeholders can be gained through the application generated when the user application is divided into the tip.

In this way, application developers will add a system based on the blockchain that can send some tips when a user generates a transaction -- for example, when a user submits a new article to a decentralized blogging platform. The tip could be distributed to different people according to their share of the "token." The platform is based on a "blockchain-like" data structure called "blockweave" and features a unique one-off pricing model. Arweave's creators say the pattern makes it possible to store data in a "permanent" way. The project has attracted investments from Andreessen Horowitz, Union Square Ventures and Coinbase Ventures. Sam Williams, Arweave's chief executive, says blockweave's "permanent Network" already has about 250 applications.

"It's essentially a reverse IC0 model," he says. "With IC0, you think there's a team, and investors trust that team to create a system and publish it, and the tokens you buy have some value in that system."

But by sharing profits, Williams says, "you're buying part of a completed business model." Crucially, he says, the development team is "not to be trusted" because developers have no right to modify the service or its business model. That means investors are buying a reliable and predictable "small daily dividend," and the option to trade the token on the secondary market, Williams said. Developers can't change the service after it goes live, but they can create a new service for free and share the same profits.

Williams sees profit sharing tokens as "a whole new way to motivate founders to build web services." He says that today's web incentives force the creators of web services to think about how to "productize" users, and that token schemes are designed to empower users.

In any case, Arweave's profit-sharing scrip plan is also likely to come under scrutiny from regulators around the world, many of whom are still trying to determine which crypto scrip should be regulated as a security.

But according to Williams, the profit-sharing token will be different in at least one clear way. On the other hand, once Arweave's developers release their profit-sharing tokens, they won't be able to change the service. "In essence," says Williams, "you cannot rely on the active management responsibilities of the founders who create the products." "Unfortunately, in the long run, we cannot predict or control what the SEC chooses to do."

The original address: https://www.theblockcrypto.com/post/68255/

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