YouSaid · the spoken record

Rune Christensen

lines on the record: 86
first: 2018-12-21
most recent: 2018-12-21
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Exactly. And then it all falls apart. And keeping it so I love that because we have such a tendency to think of hierarchy as leadership and you don't realize that there can actually be leadership in a distributed decentralized way with a leadership of the lowercase L or however you want to think about it. It could be, it's a new form. I actually think it's quite fascinating because when I think of the history of the firm, the classic, we talk about it a lot, the classic Coast paper in 1937 and all of management literature has flowed from this idea that firms are the most efficient way to reduce transaction costs and do these things. And now as a move into a new wave of DAOs that is just the beginning, we're going to have a whole new body of management leadership. I mean, some of it will be fundamental human principles universal that probably never change and some of it will just be this is the very beginning. Like we might see the next Peter Drucker of DAOs emerge. It might be you know like there might be a whole new way of thinking. I mean even like lean startups came out of lean manufacturing and Toyota style management. I love thinking.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“With. It gets back at this compression of trust, you know, but I think that taking something that you don't understand and then compressing it down to somebody that you do know and trust that can sort of speak for the will of the group will go a long way towards distributing a lot of these different tasks and keeping it so that it's human scale while at the same time mass scale.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“We're like this radical postier. And then it all falls apart. Part of our experience of growing up has been to not be afraid of leadership. Leadership is so big with humans, whether they're coordinating on mass scales, on micro scales, or anything in between. We've really learned that a good leader is worth everything. And people in our community have opportunities to be both leaders and to follow a leader themselves. So it's not something that's static and it's not something that's locked in. It really depends on the context, right? And so I think that if you have good leadership, then you're in a position where if it's some aspect of the work that is very disconnected from you, like say I'm working on technology and somebody else is working on communications, knowing that there's good leadership there and knowing that that team respects that leader and that that leader, when they speak for the group, they truly speak for the will of that group, makes it so much easier to trust a group that you might not be familiar with.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Everything else. This actually gets back into the idea of trust, right? Because you're right that, you know, when a bunch of people come together to actually work on something, there's a lot of work that needs to be done. And something that we realized in Maker, which was, it's really tempting when you get into blockchains to say, oh, we have decentralized networks now, you know, we have these permissionless open things, and let's throw away all hierarchy.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Incentives are huge, but almost as big. What looms nearly as big in my mind is actually narrative. So having all the different people who really have come together to. It really flows from our ability to trust each other and to work with each other, and a narrative gets created there of like, we're all in this together and we're all trying to do this. I hope it feels really inclusive and accessible. And so when somebody encounters the project, it lights up their antenna like, oh, this is a community. Oh, this is something that I can be a part of and I can contribute to. And a lot of that comes to narrative, founders effects, the core values. I mean, the first thing that we voted on was our core values as a community meant so much towards creating a narrative of trying to improve the world that we live in. If everybody comes at this from like some kind of hyper-rational, self-centered, I'm only in it for myself mentality, then they'll just never coordinate. They'll never cooperate, you know, and they'll never put aside their differences and do the hard work of stabilizing DAI. And so that's what I consider my job is to really steward that narrative into a place where it's something that inspires everybody.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“And I think a lot of that could potentially have to do with the fact that there's this token involved in aligning incentives. And the fact that anyone can just jump in and participate in this network as a token holder have a say and have an incentive to do the right thing”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Or, like, a herd of bison, or something like that. Everybody just knows exactly what everybody else is going to do, and they all respond in kind. And it really is like a testament to the power of humans' abilities to coordinate on these mass physical and time scales and stuff.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Remote engineering, which is something that startups and DAOs both have to contend with. But I think that we've sort of learned to put a lot of trust in people when we might not know them very well. And that's scary, but I think that it sort of speaks to people's general reasonableness, you know, and I think that, again, this is something that kind of goes underappreciated in blockchains. But at the end of the day, most people are reasonable. Most people want to do something great and they want to cooperate. They want to come together and coordinate and they want to be a part of something that is exciting. And so whether it's the developers or whether it's like the community or whether it's anybody that's associated with the project, as long as the system is fundamentally transparent and adheres to these ethics of open source and this whole aesthetic of transparency, then everybody just knows exactly what to do. And it's amazing. It's like watching like a school of fish.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that there are so many different ways, right? Because a big part of it is this community, you know, and in general, when you're trying to create money, the community and the widespread confidence is so important. When you're operating a startup, especially when it's small and early on, you run the risk of getting stuck in a pattern of naval gazing or trying to guess what the market wants and really like having a tough time reaching your customers, especially when you're trying to make something that you hope will work in the market. This is the whole product market fit thing. Having the community involved from day one has been so useful towards seeing like what is necessary, what is fluff, what is really connecting with people and making them excited. And not only that, but having the community so, so involved from day one and so tightly connected with the project actually creates this enthusiasm that allows Dai to sell itself. And then the actual effort of getting the work done, this gets more into...”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“So the decentralized autonomous organization voted using the NPR tokens. I'm curious, you know, what is it like to be inside of the belly of the beast that's building the thing? How is building a decentralized autonomous organization different from a traditional startup or is it?”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“For the first time ever, yeah, which is super exciting because, like I said, MKR operates on this idea of stakeholder democracy. And so seeing it in the wild and seeing a proposal put to the community and they deliberated it for quite a long time and then came to a decision to essentially what they ratified was their own core values as a decentralized autonomous organization.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, or with really, really high quality international finance. Not only that, but we've announced new bridges to exchange fiat currency for DAI in a very seamless way. So that way people who expect to be paid in fiat currencies can still sort of be plugged into the DAI ecosystem because there can be this seamless back and forth between the legacy financial system and this blockchain financial system. Not only that, but one of the really most exciting things that we've seen happen in the last three months was the actual implementation of a MKR governance vote, which is super exciting.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I mean, there's many different ways to look at this, right? One of the most typical ways to look at this is actually the number of dye in circulation, something like about a million new dye come into circulation every week as people lock up ether and issue against it, which is so cool. We want to see billions and billions of dye in circulation so that it can sort of take its rifle place as digital money. But on the more qualitative side, we also have to look at all of the different activities that surround the ecosystem because it's such a complex multi-stakeholder ecosystem, right? And there's so many different indicators of momentum that we've seen in just the last three months, right? Like one of the first ones that really touched off the summer for us was this trade shift partnership that I spoke about a little bit earlier.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah. So it's interesting. What I love about these three types of stablecoins that you described is that there's a lot of experiments and we're running a bunch of experiments and we're at that phase in this. But you guys are clearly beyond experiment. You have something that's not just a project that's in the market. Help me quantify what volume of things we're talking about here.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“I was just thinking in my head just now while you guys are talking about that, that this is going to really fuck with Black Schoals and like the classic derivatives models that finance has had for many ages. Anyway, just sort of interesting implications immediately and in the future for the future of finance as well.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, the way that I think about it, and this is probably simplistic, is just that the supply of an algorithmic stablecoin changes in response to demand. And the way that the supply expands and contracts is based on the price. So there's this algorithm also specified in the smart contract that's adjusting inflating the supply when the price is too high so that it comes down. What's critical here is like there's no collateral backing this. There's nothing behind it. It's just people's belief that it will stabilize itself based on the suggesting supply and demand.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“There's a lot of sort of different approaches to it. It's difficult to describe in as recognizable ways as I was able to describe Maker because Maker is this really, really old idea of issuing debt against assets. But effectively what you do with Senior Ridge shares is you take the future expected value of the network and then you use that as sort of collateral when you issue new stablecoins. So you're issuing stablecoin against the future expected confidence in the network. Does that make sense? Yeah”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so I guess we've already talked about two of the three types of stablecoins that we see commonly. One is sort of fiat-backed IOUs. And then there's Maker, which is crypto collateralized. So instead of being collateralized by fiat, it's collateralized by digital assets and tokens. And there's a third type, which is sort of novel, and that is algorithmic stablecoins. And those are often referred to as senior shares models”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“And even some that have never been tried in the history of humanity, which we call senior shares, sable coins, which are completely different algorithmic properties that allow them to be a lot more autonomous.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Jurisdictional arrest. Yeah, and it speaks to how makers sort of a rapper for all these other asset types. So fiat backstable coins are one type of asset, but there will be others, gold and real estate, et cetera.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so just introduce other collateral types. You could take these IOU-backed stable coins, which are just backed by dollars in a bank account and use them as collateral in the maker system to the extent that you trust the institution that's custodying those fiat dollars.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“I should have said on Ethereum, but when you talk about the wider world, there's actually even stablecoins that predate DAI when you talk about not on Ethereum. DAI is not naturally antagonistic towards these other stablecoins like it can feasibly be used as collateral in our system as well, right? And dye can be issued against them.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, so where are we now status wise in the world of stablecoins? Because a lot of this stuff sometimes sounds like research or a project. People often say make or project, but you actually have an actual product in the marketplace.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, absolutely. I think that with these lower level primitive elements that we really, really feel rock solid about, then we can just start to sort of think about like a global society in a way that actually feels possible.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“I think this gets to one of the key things that's just generally interesting about smart contracts and crypto in general is that if you have these security guarantees, if you are able to formally verify smart contracts in this way, what you're effectively doing is you're transferring trust that you would otherwise place in an institution into trust in code. And when you do that, what's fascinating, it's sort of like a compression algorithm. You're like compressing human trust and you're putting in this little snippet of code, which is as minimal as possible. The reason I like the word compression is like when I think about audio, we've had humans making sound for a long time. But when we got MP3, suddenly that sound could travel across the internet at light speed. And so what's great about smart contracts and especially formally verified ones is when we can trust the code, we can really increase the distribution of trust worldwide. And that's really important when you think about money.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah. And so you can get guarantees about really, really low level properties. To give you an example, and this is something that you really, really take for granted, but when you're operating in a blockchain environment, the math is not guaranteed to be working exactly the way that you expect all the time because you might have things like rounding errors, for instance, right? And so one thing that we can definitively say about Maker is that there are no rounding errors that will cause you problems down the line, right? And that's just a nice thing to know. And there's many sort of like really, really low level foundational guarantees that you can make that then allow you to sort of build confidence on a higher level that verification cannot target.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Gets into a very interesting question because you know, formula verification is really bandied about as a buzzword in blockchains, as like almost like a holy grail or like a panacea that will solve all problems, you know, and you see a lot of token investors saying, oh, formal verification. They wave their hands around. They say, then all our problems will be gone. That's not the case because formal verification, you can only verify against a well-specified behavior, right? And so it gets into sort of the limits of formal verification, which is very much about how well did you specify. You can say something very trivial and sort of tautological about maker and then verify that indeed the code matches the specification, but how far does that get you? You know, not very far. Right.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“I love when hardware and software blend like this kind of thinking. This is fascinating. We had Andy McAfee and Eric Bignolson, MIT economists on the podcast talking about the problem they argued with smart contracts is that you cannot have completeness because you don't know if the car, like let's say you have a hard car that's being passed when you owner, you cannot upfront specify that, well, this owner cannot change the color or if they do that you don't really know what's happening. So it's really interesting in this analogy when you describe formal verification to be able to do all this upfront simulation of all possible scenarios is kind of a way to play out that reality.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“So it removes an entire class of error that you could have when you have this sort of guarantee that the code indeed does match the specification. And so we're very proud to be on the cutting edge of this for smart contracts because the entire formal verification industry is not geared toward smart contracts. This is new technology. They're used to working with semiconductors and airplanes and rocket ships. So the whole formal verification industry was very kind of caught off guard by smart contracts. And so we are very proud to be the first application to be launched on the Ethereum blockchain that is formally verified. There have been experiments with this up to this point, but this is the first non-trivial application that will be launched that will have these guarantees that you can rest easy and know entire classes of errors have been mathematically ruled out as possible.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“It's like simulation, but having the ability to mathematically simulate all possible realities. You can say something like die always must be issued against a collateral asset, right? That's a bold sort of propositional statement that I make there. And so that sort of behavior, we specify it. We say die must always be issued against a collateral asset and write that in a formal way. Then what I can do is I can take an implementation of the die credit system and I can say, is it true that in all possible realities, in all possible cases, It is the case that dye can only be issued against a collateral asset and you can use essentially formal verification software tools to say, yes, we've checked and it is the case that DAI can only be issued against these collateral assets. And so when you know that, you can remove an entire class of errors or bugs something that's interesting when hardware designers talk about mistakes, they always say errors. They don't say bugs. The bug is a bit like trivializing, kind of infantilizing.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“It's really, really intense. I'll tell you, man. And so part of it is all of this work up front, but then part of it is actually a tool that will be very familiar to hardware designers, which is formal verification. Go rigorous, mathematically specified way of ensuring that the specification, the behavioral specification that you've created in fact does match the code that you've written.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“You have no idea how many times we've implemented Maker and then thrown it out, and you have to be okay doing that. You have to be able to spend an entire day looking at a single line of code and saying, is this necessary? Does this belong here? It's so meditative.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Because Well, you will be proven right in the long term, especially as it relates to smart contract, because we've got this virtual hardware environment where we create a piece of virtual hardware, we launch it onto the blockchain, and then that's it. It's out there now. And so a lot of the work is in prep”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Leslie Lamport once wrote an op-ed for me when I was at Wired arguing why we should do specifications and do code like building houses. But a lot of people fought back on that because they felt that he was very outdated in terms of thinking about this nature of fast moving object-oriented programming and all these other ways of thinking.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“And it means that the bulk of the work is actually up front before you write a single line of code. So there's tons of prototyping, tons of specification, tons of really thinking deeply about what you want to do before you ever write any smart contracts. So a lot of it is in preparation, similar to painting a house. A lot of the work is before you get the paint out. Leslie Lamplan.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm just thinking of semiconductor chips. You would design them, you ship them being manufactured in China, you make a mistake in the design, you have a huge loss, and you have to redo the entire thing.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“There's like so many different ways of thinking about this set of ideas. So this move fast and break things sort of philosophy has literally never existed in hardware design because that doesn't make any sense. Like moving fast and breaking things in a hardware means like a multi-million dollar recall. I'm just thinking of semiconductor.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Completely different from a software designer's point of view. In software, especially Web 2.0, there was this idea of ship your code as quickly as possible and sort of fix it as you, what do they say?”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“And it's immutable. Like when I print the chip, that's the chip. It's not going to change, with some exceptions. And so this virtual hardware sort of story means that when you design smart contracts, you actually have to be thinking with a hardware designer's point of view, which is...”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that one of the most interesting ways that smart contracts are different from traditional software engineering is that they actually have the characteristics of virtual hardware. Essentially, they behave like hardware because if you think about hardware, let's say I make a phone or some other microchip or a toy or something like that, I have to design it. Take the hardware back and fix it.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“One thing that's really interesting about this whole system is it's completely coordinated by token holders all over the world. There's potentially going to be lots of money in these smart contracts and lots of commerce happening as a result of the system. And so the need to have high security standards is real. Those have been following crypto would have heard of the DAO, which was a hack in the early days of Ethereum on a smart contract. Maker is not the DAO. To the contrary, it's a DAO that's been live and been secured to date. And so I'm wondering as the CTO, what are the best practices and how is engineering smart contracts different from traditional software?”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Right, it just goes right to the whole, again, even more broadly speaking, to the whole definition of crypto networks, this community owned and coin-operated digital services. And this is actually the perfect blend, the community owned, that's the DAO, it's operated, the services is MKR, which is part of Maker, which is the entity. And then you have DAI, which is the coin or the debt currency in this whole system. So I think we kind of have a sense of it. And I love what you said about the yin yin-yang because these two equally opposite and opposing forces, it's the checks and balances, the fail safe that sort of avoids this case of the mortgage crisis of 2008, because you have this opposing force.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“So the incentives of the MCARE token holders are aligned with the incentives of die holders because as die grows, if they keep the system stable, they stand to benefit. And if they don't do that, they also stand to be punished”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“One way I think about the whole system zooming out is it's really a two sided marketplace. On one side of the market, you've got them care holders. And again, they're doing the work of the system. And what they're doing is setting a bunch of parameters such that people who want to get leverage or liquidity against their assets can do that. And they know how it works. The system's fully transparent. So one side of the marketplace exists to serve sort of liquidity. The other side of the marketplaces are people who just want to benefit from the stability of DAI. They don't have to know or care about MKR. They don't have to know or care about the credit system and the smart contracts where the collateral is held. All they need to do is transact using this stable currency.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Yin and yang sort of analogy, I think makes a lot of sense also because you've got MKR on one side, the happy case, MKR is being bought and burned, and then on the sort of sad case, the mistake case, MKR is being minted and sold. If the MKR holders do a good job, then we can expect MKR to become more scarce over time.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“Right? Yes, iconic phrase there. And so the skin in the game that the MKR holders have is really interesting because in the case where one of the collaterals that they accept to be issued against, if they ever make a mistake and that collateral loses all of its value overnight, then all of the dye though is issued against it needs value to be backing it. And so what happens is MKR is minted and sold off in the marketplace to cover that debt. And so we actually have like opposing forces here, which is why this”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“A lot of decision making as new information is being presented, right? And that is really the core of what the MKR holders do. They're making decisions as new information is being revealed in the marketplace. And in the happy case, the fees that are collected are used to buy in Burn MKR, but there is a flip side, and this is really important, and it's a really important sort of skin in the game, as has been famously said many times.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“They are the service providers that make DAI work. The analogy that I like to use is actually if you imagine walking on a balance beam, this is not something that just happens automatically. You can't just make an automaton that walks on a balance beam. It requires a lot of finesse and it requires a lot of core.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“So, the analogy is that M care holders are like the miners of the maker network in the sense that they're doing the work to make sure that dye stays stable, that dye is growing and being used properly, just like the miners in Bitcoin are keeping the network secure.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source
“A fee, that fee is used to buy up and destroy MKR on the open marketplace. So it represents this kind of constant buying pressure that exists, hopefully, to the benefit of MKR holders. If the MKR holders are doing a good job, then DAI will be issued and then fees will be sent into this buy-in burn, we call it. This is very interesting, right? Because it will feel very familiar to anybody who's sort of seen this story of buybacks in the financial markets.”
2018-12-21 · a16z Podcast · a16z Podcast: All About Stablecoins · IDENTIFIED FROM THE TRANSCRIPT · source