The Tezos Foundation (“TF”) has a significant sum of BTC. A certain level of trust is required for the Tezos network to entrust the TF to deploy the BTC efficiently. 99% of startups fail - the TF is investing in startups (I am not opposed to any of this - experimentation is great!)
While I have great respect for the TF and its entities, incorporating a certain amount of the TF BTC through staking rewards would likely
- de-risk XTZ significantly;
- create a significant demand mechanism; and
- provide greater security.
As Nic Carter recently mentioned in a medium piece “cash flows” in BTC sats would be earned by bakers in addition to XTZ as opposed to just XTZ for validating and authenticating the network.
Legally speaking, I do not believe this causes significant issues, if anything actually helps as the BTC is no longer in control of just one entity but is being distributed to the network for providing security and authentication services - literally being paid for services contributed.
To do: community, economic and technical analysis (all of which are very do-able)