Community ownership model is getting validation. What’s next?
Recent articles mentioning Swarm include this Techcrunch article on how Reddit is issuing its own cryptocurrency and this other article on how Ello could do something similar. This means that there is a growing recognition of how cryptocurrency can be used to solve a long standing problem in the corporate world.
Many types of projects require not just the engagement of employees (who are directly compensated for their efforts), but larger communities, who work tirelessly but often don’t get anything back. People are realizing that something new is possible for communities.
We are calling this “Bits.” Bits are a small share in the project that allows projects to take on funding and grow their project, either without engagement with traditional investment at all or by deferring this to a later stage. A Bit can be redeemable or be used for other things like community voting, all things we’ve partially implemented and plan to expand upon.
While we previously called this “cryptoequity,” this was a bit problematic. While highly technical people followed the fact that what we meant was “programmable governance based on a cryptotoken,” others were either totally confused or thought we were issuing legal equity. Although this second category is desirable, it’s basically impossible to do legally until the JOBS act is implemented.
Most of our efforts at present are focused in the run up to our decentralized demo day on November 5th. We have seen some really incredible projects and are excited to see which five make it through our crowdsourced review process and are able to launch on that date.
So get ready. It’s almost time to get your Bits.