./sits in the dissent chair
If I’m honest, I’m not a huge fan of the idea of $BANK becoming money. While I would personally stand to greatly benefit from it accumulating real value, I feel that a governance token that is also trying to be a capital asset token or ‘money’ token is operating at cross purposes to itself.
I think the issues mStable has had around its MTA token are the reason I’m wary of this development. For those not aware, mStable’s MTA is their governance token. You stake it in their gov contract, and you are issued vMTA, which decays over time based on how long you choose to lock it up. You vote with vMTA.
However, locking up the MTA is also used to ‘boost’ your earnings in their Save contract, and their feeder pools. You’re not rewarded in more of the underlying asset, but rather in more MTA.
So we have cross purposes: MTA’s value is continually driven downwards because of the issuance rate and lack of DeFi utility. This continued downward pressure on the price erodes the returns on locking it up for Save and LPing. This makes ‘investors’ in the MTA token unhappy, and they complain about it in the discord continuously.
On the governance side, the generous issuance is great, because it enables more ‘governors’ to partake in voting. The token is inexpensive, so it makes it easy to acquire a stake. All DAOs strive to have as broad a pool of active voters as they can. Were it a ‘pure’ gov token, I’d feel like MTA is ‘doing it right.’
Rolling this all up, I’m skeptical that turning $BANK the gov token into a capital asset is going to serve its underlying purposes. I feel like $BANK should have an internal set of DAO-specific uses. For capital asset, I’d prefer a separate token tailored to investors or hodlers, who have different motivations and requirements than the DAO members themselves.
Well, no. Really, I would prefer to just use ETH, because that’s what ETH is supposed to be for, right? I feel like the tripart thesis of ETH is best exemplified by Bankless DAO using it exactly how we pontificate it should be used.