When the “Cap Table” Goes Global — Understanding the Power of Economic Incentives
The capitalisation or cap table is one of the most fundamental pieces of paper in technology — it’s the glue that keeps different stakeholders aligned for decades.
And long-term alignment is important because not many success stories are built overnight.
Going From Local to Global
The cap table shows a company’s ownership percentages among founders, employees, and investors. In other words, it’s a simple ledger or excel file — periodically updated to reflect different shareholders’ contributions — that aligns the incentives of all stakeholders involved.
It’s importance is also reflected in that unjust cap tables often lead to founder breakups.
Blockchains are global, distributed ledgers. They allow us to scale cap tables to encompass billions of stakeholder-owners.
A blockchain is similar to a special-purpose vehicle. It consists of a global pool of contributors, all economically incentivised and aligned to provide some specific functionality; be it prediction markets, exchange, file storage, collateralised lending, live streaming, etc.
Now is literally the first time in history that we’re able to achieve economically incentivised coordination of both humans and machines — at a global scale.
The implications of global cap tables are profound.