carry
@web31314
In many cases, pursuing short-term values can significantly improve financial performance. However, the additional benefits of choosing to align with the long-term interests of the project may have limited impact, further encouraging participants to prioritize short-term gains. For example, let's say a founder holds tokens worth $10 million shortly after a Token Generation Event (TGE), subject to a 3-year lock-in. If the founder chooses to cash out early in an over-the-counter (OTC) transaction at a 60% discount, he or she will still have enough money to retire. Holding on to the tokens and waiting for the long-term return of Product Market Fit (PMF) to be realized carries a higher risk: the tokens may be worth less than $4 million after 3 years. Even if the project is successful, the founders may opt for a firm $4 million, as the risk/reward of waiting for a higher return is not attractive enough.
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