Firstly, thank you for the well thought out response. This helps a lot when it comes to actually finding a solution.
Utility - I think the utility would have been from the fact that an FA token could be moved between Exchange A to Exchange B for the purchase of different offerings. For instance, Coinbase offers 50 tokens and Binance offers 150. If the token were available on two platforms that offered even 1 difference in offering, you’ve found some utility. In truth, everything on Tezos has some form of utility, we just have to find a way to use it. Perhaps the exchange token could be used to “gamble” similarly to the Stake pool price estimation game. It doesn’t have to be anything too grandiose, just something to add value to a coin. I guess you could argue that it would be best to simply create a duplicate of Tezos with a finite supply and no voting power. A Tez has a ton of utility, more than any other coin. However, until the next proposal, only 1,000 will be made. They never upgrade, the protocol never changes, and there is not voting requirements. You’ve basically created a highly functioning bitcoin. I simple store of value in which a limited supply are minted over a long period of time. By the time all the coins are minted, you would have a solution to impermanent loss by some other means. (Hopefully)
When it comes to having value for a governance token, I think a lot of people find convenience the value. If you have .000000043 BTC and .00034 Eth .023 XTZ, you can simply convert those coins to Binance coin to make them spendable. Possibly do the same thing with a governance token? Allow exchanges to basically create a melting pot for all the miniscule amounts and turn them into something usable. This will get very helpful as more FA tokens are released. People may not even like the Picasso in their living room, they like telling others they have a Picasso in their living room. The same can be said for designer handbags. Often they offer less utility, less comfort, and cost 100 times as much. But the vanity of having what others don’t becomes the measurement of value.
When It comes to the second option, it of course seems icky but we are empowering people to become their own banks. What they choose to do with their money is entirely up to them. If they receive the exchange token and turn it into Tez, great! If they choose to gamble that if they hold the price will rise, it may work out, it may not but I think it plays a part in utility. It certainly adds excitement.
When it comes to the third, I will humbly admit that I am out of my league (at this point, but ill continue to research) with some of the references you’re making and how to solve them. I think my first suggestion might cover some of the arguments. Creating a store of value coin that people are rewarded for providing liquidity is a pretty solid way to say thank you to those who are improving the Ecosystem.
Again, I really appreciate the response, Arthur. I’d love to hear from other members as well. The topic is being seen a lot but not too much feedback is happening. I’m not the smartest individual so I’m always looking for help and insight. Thanks in advance!
