Watching this video by Guy about SEC reasoning for considering some tokens as securities should be taken seriously.
Very soon, this will become a worldwide and regulators will come after cryptocurrency teams everywhere. As we have mentioned so many times on other threads, it doesn’t matter what the team repeatedly claims “$ENS is just a governance token”. What really matters is the implications of how the business is founded and then operated:
- One major flag is the treasury of the DAO. By its existence, it is implied that $ENS has a monetary value that can be channeled as funding vehicle for projects. Unlocking it on through a vesting plan further enforces this implication.
a. Burn the treasury.
b. Lock forever and delegate it as a voting power for future .eth domains purchaser (voting power allocation can for example for the next 1000,000 registrations until all is distributed).
- The second big red flag is the team allocation of tokens that are “Vested”. Vesting is always a financial tool.
a. Unlock all tokens to founders and contributors immediately with no vesting plan. This clearly states this is a voting power and not a locked monetary value.