/biz/ - Business & Finance

>>11250241
https://listing.coinbase.com/policy
https://www.coinbase.com/legal/securities-law-framework.pdf

DYOR

>Team Ownership
>The ownership stake retained by the team is a minority stake. There should be a lock-up period and reasonable vesting schedule to ensure the team is economically incentivized to improve the network into the future.


>Principle 5: Determine the percentage of tokens set aside for the development team
>How? Decide on the percentage of the total token supply that represents a fair reward for the work of the development team and advisors. Release those tokens to the development team incrementally over time (contingent on their continued work on the project)

Pooling of funds makes it a security
>Under the horizontal approach, a common enterprise is deemed to exist where multiple investors pool funds into an investment and the profits of each investor correlate with those of the other investors. See e.g., Curran v. Merrill Lynch, 622 F.2d 216 (6th Cir. 1980). Whether funds are pooled appears to be the key question, and thus in cases where there is no sharing of profits or pooling of funds, a common enterprise may not be deemed to exist. See e.g., Hirk v. Agri-Research Council, Inc., 561 F.2d 96, 101 (finding discretionary future trading account was not investment contract because there was no pooling of funds); Wals v. Fox Hills Dev. Corp., 24 F.3d 1016 (7th Cir. 1994) (promoter of condominium timeshare did not pool profits and thus no common enterprise existed).

>Nevertheless, it would seem to us to be the case that where the issuer of the particular Blockchain Tokens uses the funds derived from the issuance to create, support or maintain the system, a court might find the common enterprise element satisfied.

>Total Supply
>The team should sell a fixed percentage of the total supply, and participants should know the percentage of total supply that their purchase represents, or have a clear understanding of the inflation rate.

>>11246541
hws that different than chainlink