DAO Tooling CEO Says the ‘Regulatory Excuse’ for Tokens That Return No Value Is Going Away

What happened

On Uneasy Money, ScopeLift's Ben DiFrancesco said protocols that can earn fees ought to have a credible plan for sending value to their governance tokens, which he said exist to provide economic security. Securities law is losing its force as the reason crypto projects give for governance tokens that return nothing to holders, Ben DiFrancesco , founder and CEO of ScopeLift , said on Uneasy Money .

He thinks that shift brings “increased scrutiny” for teams that could return value to their tokens but don’t. ScopeLift took over the Tally governance platform in March and renamed it Cactus in June.

7, DiFrancesco said fear of regulators shaped a generation of tokens built with no dividends and no buybacks. Promising either meant “you were at serious risk of violating securities law,” he said.