Robin Capital

The Case for Many Different Tokens

A Protocol Is Similar to a Company

  • A company provides services to its users. Similarly, a protocol provides services to its users.
  • A company’s shareholders influence how the company is operated. Likewise, a protocol’s tokenholders influence how the protocol is operated.
  • A company wants to be able to govern its activities separate from other companies. A protocol wants to retain a similar right as well.

Separate Shares and Tokens Are Necessary for Sub-Governance

  • Without sub-governance anyone with EUR could walk into a random company’s shareholder meeting and vote without owning any of the company’s stock — just because the company’s shares happen to be denominated in EUR.
  • A separate share or token offers security to an entity’s governance. If someone would want to meaningfully influence the governance of a specific company, they’d have to buy a significant share of that company’s or protocol’s shares or tokens, increasing the price while doing so.
  • If they subsequently voted to sabotage the company’s or protocol’s operations, they’d be destroying the value of what they just purchased.