Introducing the "trust-debt note"
Hello Venture Philosophers,
Following a series of electrifying discussions with Electric Capital, we’re considering an important change:
Instead of paying market winners disproportionate interest, we’ll pay all interest on each token to the named publisher. For example, if slatestarcodex.com inspires $1 million in deposits, Scott Alexander will receive all of the interest generated by that million dollars ($20,000-$100,000 per year).
The new model immediately benefits publishers. We’re excited by this ability to create a new revenue stream for publishers immediately and automatically — without requiring any participation on their part. This model also favors individual publishers over corporations with large overhead.
Users will not earn interest, but will gain something more valuable: the ability to demand coverage on specific issues from the publishers whose tokens they own.
Tokens thus act like a trust-debt note: “I have lent you my trust. Answer my questions, or I will revoke it” (by selling the token at a lower price).
Trust-debt notes give holders a more fine-tuned leverage over publishers. Everyone with an opinion will want to hold trust-debt notes for a high-trustworthiness publisher, and be able to influence what they write about.
Remarkably, the more we treat trust as an asset class, the clearer the metaphor becomes.
Reply to this email to join our first angel investment round.
—Mike
PS Do you have an invitation to Clubhouse? I would love to join the discussion.