Token upgrade, political and economic rights (updated after SEC statement)

Hearthy Co.
Jul 24, 2017 · 3 min read

Note: Please note that my english is really awful, as an avid spanish writer all my english is fullfilled of spanish expressions and incorrections. Hope at least ideas are good.

When designing the last version of our health token we are having several dificultes in setting up a political and economic framework of rights to the token holders.

Both have triggered a kind of panic in the team of lawyers assisting us. In one side economical rights attached to tokens are a mess, technologically they are easy to implement on a token but it raise a lot of doubts about its legality.

In USA not a token will pass the Howey Test and in most Europe emmitting securities needs different licenses that are rarely expended to startups, some of them take years and millions of euros, some countries are prepairing sandboxes to fintech/blockchain companies but as for now legal enviroment is uncertain. The SEC has recently said that all tokens are securbut as soon as the first claim raises some authorities will take action, and it’s not clear what will happen then. In one side regulators will find investors/contributors of a very different kind, since bankers and brokers to students and umemployed people that just made easy money on the first musical time of the crazy dance ball of the crypto bubble, some of those people will be considered unprotected investors. In the other hand regulators are clearly advised not to stop innovation, if they scare this new economy it will just fly away to a more open jurisidiction, or simply submerge, creating a parallel, unregulated and hidden economy.

When talking about political rights things get even worse, for us the political right are pretty important, as we are trying to create an open source and community based project, but huge doubts and fears comes to us when creating the design, democratic systems have intrinsic problems, as we all see in USA now, even in a bullet-proof democratic system like the one in USA if a madman is in charge, the entire system can collapse. When giving political rights to token holders new threats appear, cartelization, code exploits…

So what comes to our mind is to upgrade the token itself. Upgrading a token is problematic, what happens if a token holder doesnt want to upgrade it? Our idea is to embbed on the token a mandatory update after 12 months, that update will boost political and economical rights of the token holders when the scenario becomes more stable and predictable. The idea behind this upgrade is to enhance three ideas we want to be on our token:

  • Protect token holders from volality while creating a sustainable system.
  • Grant economic rights to token holders incentivizing long-term users.
  • Grant political rights to token holders, so patients, investors, physicians… can be part of the governance.

Those are our toughts so far, remember you can talk with us on our slack channel https://slack-hearthy-.herokuapp.com/

Hearthy Co.

Written by

With Hearthy we want to create a decentralized, open and sustainable ecosystem to improve health care access to everyone.

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