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

BlockBeats News, December 24, Jake Chervinsky, Chief Legal Officer of the crypto venture capital firm Variant Fund, stated on social media, "The debate over tokens versus equity has only just begun. Many crypto projects were born in the era before former SEC Chairman Gary Gensler, when heavy regulatory pressure forced development companies to direct almost all value toward 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 well together. This new round of experimentation is beginning right now."

I don't have a particular stance on Aave's specific situation, but I want to emphasize one point: clarity is always the most important thing. Token holders must clearly know what they actually own, what they can control, and what they cannot control. The design space for token value capture is extremely broad, far greater than that of traditional equity. I believe that for quite a long time, it is unlikely that a standardized token model will emerge 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 enable holders to directly own and control on-chain infrastructure 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 rather than 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 treat their tokens as tokenized securities and apply the new rules that the SEC will set for this market in the future."