Regulation of investments

The project's DAO is responsible for managing the project's funds. It determines whether to allocate funds towards hiring external expertise or to reserve them to compensate contributors prior to the project generating revenue.

The decision of members to convert their tokens into currency depends on their assessment of the project's future value. If they believe the project holds significant promise, they may opt to retain their tokens, anticipating future rewards. This can create a dilemma for developers, as allowing additional investment, and thus token minting, could potentially dilute the value of existing tokens.

In theory, if all the necessary skills and expertise are available within the platform's community, entire projects could be developed without relying on external investments.

This tokenomic model provides a mechanism to control the inflow and outflow of funds within the project. By limiting excessive investment, it ensures that the project's potential earnings are not diluted. This empowers non-financial contributors and helps maintain the token's value, making it more resistant to speculation and market manipulation.