Opinion: Tokens should capture on-chain value, equity should capture off-chain value.

BlockBeats news, on December 24, Jake Chervinsky, Chief Legal Officer of the cryptocurrency venture capital firm Variant Fund, stated on social media, “The debate about tokens versus equity is just beginning. Many crypto projects were born in the era of former SEC Chairman Gary Gensler, when strong regulatory pressure forced development companies to direct almost all value towards equity rather than tokens. Now, the policy environment is changing, and new opportunities are emerging. It will take a lot of time and experimentation to figure out how (or if) tokens and equity can work together well. This round of experimentation is starting right now. I don't have a specific stance on Aave's situation; I just want to emphasize one point: clarity is always the most important. Token holders must clearly understand what they actually own, what they can control, and what they cannot control. The design space for value capture of tokens is extremely broad, far greater than traditional equity. I believe that for a considerable period of time, it will be unlikely to form a standardized token model like stocks. We believe tokens should carry on-chain value, while equity should carry off-chain value. The core innovation unlocked by tokens is self-sovereign ownership of digital property. Tokens allow holders to own and control on-chain infrastructure directly without relying on off-chain intermediaries. Off-chain value is different. Token holders cannot directly own or control off-chain income or assets, so in most cases, this value should belong to equity, not tokens. Of course, other models may also work. Some projects may choose a single asset model with no equity at all; others may decide to regard their tokens as tokenized securities and apply the new rules that the SEC will formulate for this market in the future.”