52 sats \ 10 replies \ @grayruby 20 May freebie \ on: Monumental Crypto Legislation Vote Tomorrow: The Legislation Breakdown bitcoin
It will be interesting if there is any political backlash when the eth foundation changes monetary policy once again to increase supply so they can issue more tokens to stakers or they slash some custodians stake and investors realize they were misled to believe it was a decentralized commodity.
I am not super knowledgeable about commodities and how they function but from my understanding ETH would better fit commodities since when you think about ag products supply increases and decreases something that ETH does. I think of slashing almost as a natural weather disaster that destroys a harvest. BTC being so finite doesn't fit as well but under commodities it will be MUCH MUCH better protected than under the SEC!
reply
When is the last time you saw an intentional natural disaster created by a small group of people destroy a harvest? (Slashing is a governance decision not a natural function).
Dynamical supply is not what makes a commodity a commodity. Besides dynamical supply was only instituted post merge. So less than 2 years ago and the merge itself was a forced software upgrade. I don't think anyone would argue eth became more like a commodity after the merge. The argument is it was before therefore it should still be now.
You can argue eth deserves a different classification other than security. I don't really buy any arguments that it is a commodity, It got labelled as such because the industry lobbied the SEC and Hinman made a statement the agency did not want him to make which set a precedent.
I still believe congress needs to define digital asset classifications better. Maybe more classifications than simply commodity and security should exist.
reply
reply
reply
Not according to NOAA data. The effects of their decisions have been clear and the mismanagement is significant. Granted they will never beat the granddaddy of them all with the Stalin-caused Ukrainian famine but killing a minimum of 5 million people due to being an idiot with harvests is hard to beat
reply
I am not saying it's a stretch that these decisions have had a major impact on the commodities themselves. I am saying that comparing that to a bunch of crypto nerds voting to slash someone's stake in software network as justification for its status as a commodity is quite a stretch.
I don't care what the regulators call eth. I just don't like the idea that it achieved its status through backdoor dealings rather than honest due process.
reply
reply