{"id":154006,"date":"2021-01-14T01:58:00","date_gmt":"2021-01-13T22:58:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/finance-redefined-if-it-aint-broke-dont-fix-it-jan-6-13\/"},"modified":"2021-01-14T01:58:00","modified_gmt":"2021-01-13T22:58:00","slug":"finance-redefined-if-it-aint-broke-dont-fix-it-jan-6-13","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/finance-redefined-if-it-aint-broke-dont-fix-it-jan-6-13\/","title":{"rendered":"# Finance Redefined: If it ain\u2019t broke, don\u2019t fix it? Jan. 6\u201313"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a299df8020f4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a299df8020f4\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/finance-redefined-if-it-aint-broke-dont-fix-it-jan-6-13\/#A_hard_to_please_community\" >A hard to please community<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/finance-redefined-if-it-aint-broke-dont-fix-it-jan-6-13\/#The_case_for_venture_investment\" >The case for venture investment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/finance-redefined-if-it-aint-broke-dont-fix-it-jan-6-13\/#In_other_news\" >In other news<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Finance Redefined: If it ain\u2019t broke, don\u2019t fix it? Jan. 6\u201313 <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvNDI5ZDg3NWQtNzg3Mi00YTU2LWI0OTYtZWNlNzkwNGYxNGExLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a><em>Finance Redefined is Cointelegraph&#8217;s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>letter focusing on the latest events and trends of DeFi, delivered to subscribers every Wednesday.<\/em><\/p>\n<p>This week I wanted to highlight Andre Cronje\u2019s recent confession on Medium, which triggered a fair bit of discussion and quite a bit of salt from Uniswap team members. This particular spat occurred because he complained about developers just forking someone else\u2019s code and launching it themselves. For those unaware of the irony, this is basically what SushiSwap, a Yearn ecosystem member, initially did to Uniswap. <\/p>\n<p>More importantly, Cronje also complained about what he perceives as an entitled DeFi community, and the concept of giving tokens away without a founder\u2019s stake.<\/p>\n<p>Cronje\u2019s argument can be summarized as follows: DeFi users are largely speculators who are paid to use the projects, and see price action as the ultimate sign of their success. No matter what kind of work the developer puts in, the community will always only care about the number going up and will personally hold the developer accountable if it fails to do so. <\/p>\n<p>Finally, Cronje warns against giving away tokens. Development costs for Yearn <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arently exceed the value of the few tokens he farmed. Essentially, launching a product that attracted hundreds of millions of dollars made him poorer.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_hard_to_please_community\"><\/span>A hard to please community<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cronje\u2019s categorization of the DeFi community can be applied to the entire crypto ecosystem. I also believe that it\u2019s just a natural consequence of the fact that there are tokens to get rich off. Would you ever join the Discord or Telegram chat for, say, Bank of America? Costco? Coca-Cola?<\/p>\n<p>There are definitely some people who have fun interacting with these huge brands. By and large, though, without a financial stake in the company you really don\u2019t care about what it\u2019s doing on a daily or monthly basis. Do you think there could<em> ever <\/em>be an enthusiastic community behind Swift, the banking infrastructure layer? No? Throw in a token that can make huge gains and boom, you have the Swift Army.<\/p>\n<p>I suspect there is a reverse survivorship bias that\u2019s triggering Cronje\u2019s complaints. Most token holders are apathetic when the getting\u2019s good, but heavy losses might frustrate them so much that they could start venting with the developers. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_case_for_venture_investment\"><\/span>The case for venture investment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Professional investors are a different breed altogether. A good venture capitalist will never ignore or fail to credit the team of a portfolio company for their successes. They are also likely to have the experience to know that price does not equal fundamentals, meaning they will extend support to projects they believe in even as losses mount.<\/p>\n<p>As for Cronje\u2019s financial situation, there is another important lesson to learn from professional investors. Contrary to most people\u2019s expectations, venture capitalists often want founders to have high salaries and plenty of equity. They are ultimately investing in the people behind the project \u2014 the last thing they want is for the developers to worry about how to pay rent when they must dedicate 110% of their time to the startup.<\/p>\n<p>Ideals like fair launch, no pre-mine, community ownership etc. sound great on paper, but in practice they may simply not be quite as effective as people think. There is certainly a balance to be found here, as greedy founders are just as detrimental to a project\u2019s success. But I don\u2019t think that throwing the baby out with the bathwater is the answer.<\/p>\n<p>The Yearn community might ultimately decide to offer Cronje a huge salary to thank him for his continuing efforts, which would be a great testament to the effectiveness of decentralized autonomous organizations. But this decision would also highlight how there is no point in reinventing the wheel of entrepreneurship in pursuit of some misguided ideal of fairness. Venture capitalists can be very valuable, and rewarding founders is both pragmatic and fair. <\/p>\n<p>I\u2019d rather invest in a venture-funded project that is honest about what it is than join some \u201cfair launch\u201d where the founder ends up rug-pulling the project for $24 million (temporarily).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"In_other_news\"><\/span>In other news<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Yearn community discusses a new value capture mechanism for YFI, potentially ditching its staking dividends.<\/li>\n<li>The OCC\u2019s Brian Brooks is excited about DeFi\u2019s ability to make banking more transparent.<\/li>\n<li>Bancor releases results of its impermanent loss protection program, showing the mechanism is more than sustainable so far.<\/li>\n<li>Nexus Mutual adds coverage for centralized exchange hacks on Coinbase, Kraken and a few others.<\/li>\n<li>Binance and Orbs launch DeFi accelerator.<\/li>\n<li>BadgerDAO gears up for launch of Ampleforth-like rebasing Bitcoin.<\/li>\n<li>SushiSwap reveals an impressive 2021 roadmap.<\/li>\n<li>Warp Finance adds Chainlink price feeds to prevent future flash loan attacks.<\/li>\n<\/ul>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/finance-redefined-if-it-ain-t-broke-don-t-fix-it-jan-6-13\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Finance Redefined: If it ain\u2019t broke, don\u2019t fix it? Jan. 6\u201313 &#8221; Finance Redefined is Cointelegraph&#8217;s newsletter focusing on the latest events and trends of DeFi, delivered to subscribers every Wednesday. This week I wanted to highlight Andre Cronje\u2019s recent confession on Medium, which triggered a fair bit of discussion and quite a bit&#8230;<\/p>\n","protected":false},"author":1,"featured_media":154007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/429d875d-7872-4a56-b496-ece7904f14a1.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74868,4965],"class_list":["post-154006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-defi","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/154006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=154006"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/154006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/154007"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=154006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=154006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=154006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}