[HN Gopher] The Ponzi Career
       ___________________________________________________________________
        
       The Ponzi Career
        
       Author : elsewhen
       Score  : 287 points
       Date   : 2021-04-11 14:26 UTC (8 hours ago)
        
 (HTM) web link (www.drorpoleg.com)
 (TXT) w3m dump (www.drorpoleg.com)
        
       | sgt101 wrote:
       | "Isn't this the same as traditional student debt or, worse,
       | indentured servitude? Not really"
       | 
       | Saying "not really" doesn't make something so. This is, literary
       | indentured servitude. By definition.
        
         | gcheong wrote:
         | By what definition? In the lambda school case you only pay back
         | if you're in a job that pays >50k/year, it's a percentage of
         | income, and it's capped at 30k. Indentured servitude requires
         | you to do basically anything for your indenture holder for no
         | pay until you've paid it back. Student loans that cannot be
         | discharged regardless of circumstance sounds far more like
         | indentured servitude than an ISA to me so "not really" I think
         | is a fair assessment.
        
           | ghaff wrote:
           | Yes. I'm not sure how making the payback variable as a
           | function of salary up to some cap is something unacceptable
           | while a fixed payment obligation is a run of the mill loan.
        
         | cochne wrote:
         | No, by definition it is not, because the person is still
         | earning a salary.
        
         | paultopia wrote:
         | Thank you. The indentured servitude character of this stuff is
         | most clear when we look at the $ALEX example. Selling off a
         | chunk of future autonomy and income in order to finance
         | migration to a place with more economic opportunity is exactly
         | what poor folks did circa the 17th and 18th centuries. Perhaps
         | we should look at the history of how that went before
         | replicating it.
        
         | bradleyjg wrote:
         | At least in the version that existed in early America
         | indentured servitude allowed for coercion and there was no
         | bankruptcy option. Whereas in modern law specific performance
         | for personal service contracts are strictly forbidden and
         | bankruptcy is out there.
        
           | t0mas88 wrote:
           | But student loans are exempt from bankruptcy, so in a way
           | that particular investment in future earnings is a bit
           | outside the modern protections.
        
             | bradleyjg wrote:
             | The grandparent's post "this" referred to the personal
             | equity proposal, not students loans.
             | 
             | That said:
             | 
             | - I agree that student loans ought to be dischargable in
             | bankruptcy (indeed I think the government should have
             | nothing to do or say with them at all)
             | 
             | - I still don't think they are reasonably referred to as
             | "literally indentured servitude", though one step closer
        
           | Igelau wrote:
           | We got rid of debtor's prisons too, which is an improvement.
        
         | Igelau wrote:
         | > a person who signs and is bound by indentures to work for
         | another for a specified time especially in return for payment
         | of travel expenses and maintenance.
         | 
         | This != That
        
       | jcpham2 wrote:
       | Thanks for this, it was an excellent read and these celebrity
       | coins I personally was not aware of and that's an interesting use
       | case I never thought of.
        
       | andrewfromx wrote:
       | Explains how people are selling ECR20 tokens with special rights
       | to income from just one person. Also the right to message them.
       | i.e. a fan can buy a token of a "celebrity" and get special inbox
       | rights. But also upside if that person goes on to become very
       | successful.
        
       | SergeAx wrote:
       | > these [blockchain issued] tokens are not simply "certificates
       | of ownership"; they can be pre-programmed to behave in a certain
       | way (for example, pay a dividend each time a predefined event
       | happens)
       | 
       | For this to happen the blockchain gotta have a way to sync with
       | events in the physical world. Moreover, all active blockchain
       | nodes should have equal access to this data and get equal result
       | at given time. This mechanism cannot be enforced by blockchain
       | itself, so we are back to the issue of trust.
        
       | angry_octet wrote:
       | We went through the 2008 financiy crisis and this is what people
       | think is a good idea?
       | 
       | How long before people are trading options on risk weighted batch
       | of people? Leveraged buyouts if whole specialties? Movement
       | controls to enforce greatest P/E? "I'm sorry sir, you can't leave
       | the country without presenting a Holiday Risk Bond. Perhaps a
       | Virtual Vacay is more affordable?"
       | 
       | And most of all: you, as an individual, have almost no
       | information about the market, and are almost certain to get a bad
       | price.
       | 
       | Anyone who thinks they are good at this should practice buying a
       | new car. Once you get to the final sale price, with no finance,
       | demand another 9% off. If you can get that, and the car isn't a
       | lemon, you're ready to negotiate for a well understood commodity.
       | 
       | Selling people futures, when you've just given them capital up
       | front with the goal of enabling higher returns, is less
       | understood, though of course there are many immigrants who do
       | just that. But already wealthy people? It seems much less
       | certain.
        
       | caseyross wrote:
       | Interestingly, there's nothing particularly novel about investing
       | in a person's early career to reap late-career rewards.
       | 
       | In America, it used to be that parents and employers would invest
       | a lot of money in raising and training young adults,
       | respectively. But more and more, there's less money available to
       | support these programs.
       | 
       | Given this situation, it makes sense that early-career people
       | would have to look elsewhere for people willing and able to
       | invest in them.
        
         | robocat wrote:
         | > there's less money available to support these programs
         | 
         | Incorrect. "Since 1980, college tuition and fees are up 1,200%,
         | while the Consumer Price Index (CPI) for all items has risen by
         | only 236%." https://www.visualcapitalist.com/rising-cost-of-
         | college-in-u...
        
           | darkerside wrote:
           | And with the amount of federal and state dollars going into
           | scholarships and loans, it's hard to say with a straight face
           | that society isn't directly funding its most promising youth.
        
       | kingsuper20 wrote:
       | I've run into that with doctors now and again.
       | 
       | You'll meet a younger doctor who complains heavily about student
       | debt and how impossible life in the US is. I'll offer to write a
       | check for the debt in return for a negotiated percentage of their
       | income from now on. Silence ensues.
        
         | pavel_lishin wrote:
         | That's probably because the deal you're offering them is
         | objectively worse than their current deal.
        
         | Klinky wrote:
         | Please provide the full terms before you imply the young doctor
         | was being unreasonable. The silence was probably because you
         | were offering an awful predatory loan, not that you were
         | delivering the ultimate gotcha zinger.
        
         | PragmaticPulp wrote:
         | > I'll offer to write a check for the debt in return for a
         | negotiated percentage of their income from now on. Silence
         | ensues.
         | 
         | Writing someone a check in exchange for their future earnings
         | "from now on" is a terrible deal. You're essentially offering a
         | loan that can never be paid back, yet requires payments
         | _forever_.
         | 
         | Loans are a good deal because the terms are known ahead of
         | time, payments end when the principle is paid off, and the cost
         | can be calculated.
         | 
         | The idea behind ISAs is that they try to align the interests of
         | the student and the educator, as the educator only gets paid
         | proportionally to the students' future earnings. ISAs also have
         | limits on how long they can collect from the student and
         | thresholds that have to be met for collection criteria, as well
         | as an upper limit on payments.
         | 
         | What you're describing is just facetious and condescending to
         | those with six-figure medical debt.
        
           | bradleyjg wrote:
           | > What you're describing is just facetious and condescending
           | to those with six-figure medical debt.
           | 
           | The point is that medical debt is a very good deal for the
           | reasons you point out and because the doctor cartel in the US
           | has forced prices up to dizzying heights.
           | 
           | Yet people bitching and moaning about having borrowed $300k
           | at reasonable interest rates for the right to earn many
           | millions with almost no risk (when was the last time you met
           | an involuntarily unemployed doctor?) don't acknowledge that.
        
           | ghaff wrote:
           | There is such a thing as a perpetual (consol) bond although
           | it's rare. What happens is that, over time, inflation erodes
           | the real value of the payments. (And at that point, it looks
           | a lot like equity with a contractually fixed dividend payout.
           | Debt and equity can look a lot like each other.)
           | 
           | And, if this is a lifetime thing, this is just a form of
           | annuity which are fairly common. (Give someone $X and they
           | promise to pay you $Y annually for your lifetime (or other
           | term)). There are also annuities that track the value of some
           | investment pool like an endowment.
        
             | Klinky wrote:
             | A doctor's salary is unlikely to be eroded by inflation.
             | 
             | Annuities often underperform inflation, and life annuities
             | are typically offered by insurance companies with risk
             | pooled assets, not by a single individual.
        
           | 0x4d464d48 wrote:
           | "You're essentially offering a loan that can never be paid
           | back, yet requires payments forever."
           | 
           | A better analogy would be taking part ownership of a man's
           | livelihood and expecting him to pay dividends like a stock.
           | 
           | If he tied his career to an LLC this would make sense
           | oterwise he's literally selling himself.
        
         | llaolleh wrote:
         | Haha I love this.
         | 
         | If we think about it in terms of pure game play, medicine is a
         | part of the game where the strategy is to take on a massive
         | amount of debt, high risk and uncertainty for incredible
         | returns.
        
           | PragmaticPulp wrote:
           | > medicine is a part of the game where the strategy is to
           | take on a massive amount of debt, high risk and uncertainty
           | for incredible returns.
           | 
           | Not really. It's exceedingly rare for someone to complete
           | medical school and then not be able to find a relatively
           | high-paying job if they want one.
           | 
           | The risk would be something like later deciding not to pursue
           | a career in medicine, but that's a personal decision rather
           | than an external risk.
        
             | robotresearcher wrote:
             | Illness and accident can end anyone's career any time.
        
               | kingsuper20 wrote:
               | That's why you need to purchase a half dozen doctors.
        
           | bidirectional wrote:
           | I heard a (probably invented) story that one year the Harvard
           | Business School commencement speech basically boiled down to
           | "you can earn an upper-middle class income for the rest of
           | your life without ever working as hard as you did to get in
           | to this programme".
        
           | dasil003 wrote:
           | I'm not sure I like the investment analogy for ones career
           | since you have to actually put the work in to get the pay.
           | Your time, effort and talent are at least as much of a
           | contributor as the medical school tuition. Perhaps a name
           | brand school gives you a significant bump in earning
           | potential on the margins but "incredible returns" still feels
           | reductive of what is essentially a very hard and traditional
           | career path.
        
       | booleandilemma wrote:
       | I can't imagine having "shareholders" governing whether I'm
       | allowed eat meat or not, or how much I should be exercising.
       | 
       | You're reduced to a slave, with many masters instead of one.
       | 
       | No thank you.
        
       | kristianc wrote:
       | Each of these articles need to be treated with a degree of
       | scepticism: in order to have a functioning market for any of
       | these things - whether an NFT, a share of future earnings, or
       | 'BitClout' - you need people who are willing to buy into the
       | ecosystem.
       | 
       | If there are not a steady stream of new entrants with new money
       | coming to the market, the whole thing collapses like a house of
       | cards. And you will eventually run out of people. Anyone
       | seriously looking into BitClout should look into the recent story
       | of FootballIndex in the UK.
       | 
       | The Ponzi analogy is quite apt, and buyers into Ponzi schemes
       | typically do not do well out of it.
        
       | istjohn wrote:
       | The unstated implication is that these investment vehicles are
       | for suckers, as in any ponzi scheme.
        
         | gruez wrote:
         | Unlike a ponzi scheme (which is guaranteed to be a loss
         | overall), a ISA token could theoretically work out for all
         | parties involved. The article mentions that lambda school's
         | business model is based off it. The problem is that the market
         | for such tokens is a market for lemons, and the amount of due
         | diligence you have to do to weed out the scammers vastly
         | outweighs whatever risk-adjusted-returns you can get compared
         | to the s&p 500. It's the p2p loan craze all over again.
        
       | dyeje wrote:
       | I am curious whether it is easier for a startup looking to get
       | into this space to do their ISAs via traditional contracts or
       | Ethereum.
        
         | PragmaticPulp wrote:
         | Traditional contracts are required either way. Anything on the
         | blockchain would still require a traditional real-world
         | contract to back it up.
         | 
         | For ISAs, there isn't really any reason to put it on the
         | blockchain unless the company is trying to sell it. Even then,
         | the NFT on the blockchain would only be representative of the
         | ownership, which still depends on the real-world contract. The
         | contract would likely have provisions that the NFT is null and
         | void if lost or stolen, as no reasonable company would
         | voluntarily give up protections for their assets.
        
       | _red wrote:
       | >ponzi
       | 
       | It's become increasingly common to see the word "ponzi" applied
       | to what is just really a "speculative investment".
       | 
       | Its a shame this is continually being done, because its a real
       | destruction of language meaning. A "ponzi scheme" is an
       | intentional act to defraud...using a portion of investor funds to
       | pay other investors in hopes of attracting more and more
       | investors. The conman then times his exit appropriately once some
       | critical mass of investors rush in.
       | 
       | A risky or speculative investment is just that. There is no
       | intent to defraud. The continual lazy use of "ponzi" does lots of
       | harm since it unfairly implies 'an intentional act to defraud'.
        
       | martindbp wrote:
       | The nicest thing I've ever been told came from my best friend,
       | telling me he'd buy stocks in "me" if it were possible. It
       | wouldn't have been a particularly good investment, but I guess he
       | was on to something with that concept!
        
       | peytn wrote:
       | How do you tackle issues with manipulation? Can't I get together
       | with my friends and wash trade each other's tokens?
        
         | PragmaticPulp wrote:
         | Yes, wash trading should be assumed to be ubiquitous in the NFT
         | space. It's too cheap and easy to create fake trades of NFTs to
         | trust that transactions are all real.
         | 
         | The tokens described in this article don't necessarily depend
         | on the sale price of the NFT, though. Instead, these NFTs would
         | represent the beneficiary of real-world contracts. Whoever
         | holds the NFT collects the future income of the person, as
         | enforced by a real-world contract.
         | 
         | Of course, nothing stops them from wash trading these NFTs in
         | an attempt to flip them.
        
         | gruez wrote:
         | At the end of a day it's still a token, so all the usual scams
         | (eg. pump & dump) still apply.
        
       | scotty79 wrote:
       | Lambda school seems like an example of perfectly aligned
       | incentives.
       | 
       | I wouldn't mind if private higher and trade education was
       | required to only take in money through such setup.
       | 
       | And if people deem less practical education necessary it should
       | be funded from taxes only.
        
         | t0mas88 wrote:
         | The European system with higher income tax and heavily
         | subsidised universities practically has the same result. Anyone
         | (that is a permanent resident) can go to a top school, but
         | you're paying it back the 40 years after with 50%+ income tax
         | if you get a good job.
        
           | scotty79 wrote:
           | Not really, because universities don't care if what the teach
           | is useful in the job market because they get money from tax
           | either way.
        
       | pavlov wrote:
       | _> "By letting other people invest in you, you are incentivizing
       | them to promote your own story and do their best to increase your
       | tokens' value."_
       | 
       | In 1946, the US Supreme Court established the so-called Howey
       | Test to determine if an investment opportunity is a security
       | offering. These are the Howey criteria:
       | 
       | "Under the Howey Test, a transaction is an investment contract
       | if:
       | 
       | "It is an investment of money;
       | 
       | "There is an expectation of profits from the investment;
       | 
       | "The investment of money is in a common enterprise;
       | 
       | "Any profit comes from the efforts of a promoter or third party."
       | 
       | IANAL, but these personal tokens seem to match every condition of
       | the Howey test. I'd be extremely careful about conducting your
       | own little security offering if you're resident in the US, or
       | allow US residents to participate.
       | 
       | It's worth noting that Alex Masmej, the person mentioned in the
       | article, conducted his token offering while in France.
        
       | airza wrote:
       | The future outlined by these new and exciting investment vehicles
       | is horrifying.
        
         | nemo44x wrote:
         | It is but you wonder if the instability of a career is even
         | more horrifying?
         | 
         | It is essentially like a farmer selling futures contracts on
         | their crop. The yield of the crop and market conditions at
         | harvest time are so uncertain that trading upside for stability
         | becomes a smart bet.
         | 
         | So one might think to themselves that they don't feel certain
         | about their ability to generate income for the next 20 years
         | and sell a claim to their existing and future incomes for a
         | payment today which they can diversify into other investments
         | and tap in the future if things unravel for a period.
         | 
         | Of course the old fashioned way of doing this is putting part
         | of your income into savings. But front loading savings has
         | benefits like having a larger nut to start with and more time
         | to compound.
        
           | airza wrote:
           | The entire line of thinking just seems to me like it is
           | bending over backwards to avoid just... having income taxes
           | and a social safety net.
        
             | nemo44x wrote:
             | I think it's more like insurance than a social safety net.
             | It's also private instead of public and therefore by
             | necessity, political, which is undesirable for many people.
             | 
             | And I don't think it's in lieu of a social safety net. This
             | would exist to stabilize a lifestyle. A social safety net
             | would still exist for adults that can't take care of
             | themselves through government funded shelter and food and
             | other things.
             | 
             | I would expect a professional couple with plans of a family
             | wouldn't be able to (or want to) rely on the whims of
             | government assistance. You'd maybe want to plan a lifestyle
             | and getting up front money could have benefits. Similar to
             | purchasing additional life insurance if you have kids.
        
       | scotty79 wrote:
       | Apparently there'll be Student Coin lauching soon. From what I
       | understand it is supposed to be a platform built by students on
       | ethereum that promises to make settingu up such personal IPOs
       | super easy...
        
       | bko wrote:
       | > As I mentioned in an earlier piece, these tokens are not simply
       | "certificates of ownership"; they can be pre-programmed to behave
       | in a certain way (for example, pay a dividend each time a
       | predefined event happens).
       | 
       | I don't get how you can pre-program a contact to pay a percentage
       | of your earnings. Ethereum is very restricted as to what you can
       | program. I don't think you can just write "check stock price of X
       | on CNBC, if X then Y..." Even if you could you would need to
       | prefund it with Ethereum which would make the fund raising aspect
       | kind of pointless.
       | 
       | > In English, this meant Masmej was selling digital tokens under
       | his own name ($ALEX). The token sale would sponsor his
       | entrepreneurial journey. Owners of these tokens will receive
       | certain rights over Masmej's future income and career decisions.
       | 
       | It's just a promise to backers. I can't see how its enforced by a
       | contract. It's no different than just having people send you
       | money via PayPal and you promising to hit them back when you make
       | some money. I guess easier to administer and track woh you
       | promised?
       | 
       | And I don't see how an income sharing agreement is a Ponzi
       | scheme. A ponzi scheme is current investors paying out to
       | previous investors. This is just a funding mechanism, selling
       | equity instead of debt
        
         | PragmaticPulp wrote:
         | > I don't get how you can pre-program a contact to pay a
         | percentage of your earnings.
         | 
         | You can't. Any agreement like this would still require a
         | traditional, real-world contract to carry any weight. The
         | contract would specify that the holder of the NFT is entitled
         | to the benefits of the contract. Even in a hypothetical world
         | where everyone gets paid on the Ethereum blockchain, the person
         | could simply open up a second ETH wallet and collect payments
         | there, because crypto wallets aren't people.
         | 
         | The unspoken catch is that these contracts would likely include
         | a provision that the NFT is null and void in the event that
         | it's lost or stolen. People entering into contracts aren't
         | eager to give up their rights to hacks when they can simply add
         | a contractual provision that limits it.
         | 
         | The NFT exists because it's a convenient placeholder to
         | represent something that can be traded with commonly accepted
         | (relatively speaking) tools.
         | 
         | A real-world contract would still be necessary to put any
         | weight behind these NFTs.
        
           | dharma1 wrote:
           | You're right, the personal tokens like one the from Alex are
           | simply an IOU based on trust and reputation. Reputation
           | systems are really interesting and can work for some things,
           | but I'm not sure you could sell the equivalents of Bowie
           | bonds on trust alone - and the whole point of smart contracts
           | is that they're supposed to be trustless.
           | 
           | So I think investing in future gains of a real world entity
           | who can simply start over under a new guise or decide not to
           | pay, without being able to enforce the contract isn't going
           | to work. But I'm not sure connecting current legal
           | entities/contracts to onchain versions will be the answer
           | either in many cases.
        
       | JohnJamesRambo wrote:
       | It's just more top signals. There's too much money floating
       | around if people want to invest in nonsense like this. When
       | equities correct from the current Shiller PE ratio higher than
       | 1929 I think you will find less people want to invest in a career
       | token for someone.
       | 
       | https://www.multpl.com/shiller-pe
       | 
       | The Bowie Bond part of the post was fascinating by the way. Had
       | never heard that story. He issued them in 1997 which is a high
       | Shiller PE value also before the 2000 stock bust. Lots of money
       | floating around looking for a home then too.
        
         | xur17 wrote:
         | I agree that there's a ton of money floating around /
         | frothiness, but what's inherently _wrong_ or ill-advised about
         | investing in future cashflows of a person. Assuming you
         | diversify across a bunch of people in a bunch of fields, this
         | actually sounds better than some of the stuff people are
         | investing in in the stock market.
        
           | SergeAx wrote:
           | Because having a share in an individual sounds very much like
           | slavery?
        
       | furstenheim wrote:
       | I'm surprised it didn't mention the more extreme case of Mike
       | Merrill https://www.wired.com/2013/03/ipo-man/
        
       | hwestiii wrote:
       | I very vaguely recall the Bowie Bond issue being reported
       | somewhere but confess to promptly forgetting it. Would have been
       | interesting to have followed it in real time. It appears to have
       | quickly lost news-worthyness.
       | 
       | The future is like that a lot.
        
       | RichardHeart wrote:
       | Bitclout mentioned here steals your keys.
       | https://twitter.com/_prestwich/status/1379963871792799744 If you
       | used a non unique seed with them, consider it compromised.
        
       | mollems wrote:
       | The bit about monetizing one's influence / reputation reminds me
       | of Cory Doctorow's novel _Down and Out in the Magic Kingdom_.
       | 
       | https://craphound.com/down/Cory_Doctorow_-_Down_and_Out_in_t...
        
       | gibybo wrote:
       | If you're interested in this concept, you may enjoy the novel
       | "The Unincorporated Man" which is set in a future where everyone
       | (except the protagonist) has personal shares traded on an open
       | market.
       | 
       | It's a bit thick on ideological propaganda of the extreme
       | capitalist/libertarian type, but I found the exploration of the
       | concept fascinating enough to get through most of it.
        
         | citizenkeen wrote:
         | It launches a decent series with each book having different
         | premises, as well.
        
       | arberx wrote:
       | To call this a ponzi scheme is pretty disingenious, probably
       | great for views/clicks though.
       | 
       | At the core a ponzi relies on guaranteed return, paid for by
       | other investors.
       | 
       | Just because you might not like or understand how something
       | works, doesn't mean it's a ponzi.
        
       | ChrisMarshallNY wrote:
       | I enjoyed the piece.
       | 
       | Personally, I want no part of it, but I think it might work well
       | for people who are not me.
       | 
       | I've always been "on my own." My life really is a series of
       | watersheds, where I've been the only person to believe in me,
       | before the event, and a whole bunch of folks seemed to believe in
       | me, after the fact. Not a particularly good setup for selling
       | "Chris-Tokens(tm)."
       | 
       | Not a bad thing, in the long run. It hurt like hell, the first
       | few times, but I realized that I don't have the personal skills
       | to "sell" myself (like being able to spew jargon, sound like I'm
       | TED-talking all the time, or beat LeetCode tests), so I can't
       | blame folks for not wanting to "invest" in me. It is what it is.
       | I come across as a socially-awkward dork, so people don't take me
       | seriously. I'm actually fairly good at what I do, but If I
       | mention that, it comes across as "arrogant," despite the enormous
       | ocean of hubris that pretty much defines today's tech scene. I
       | don't really have the skill to "humble-brag."
       | 
       | It taught me to live a conservative lifestyle, be Honest and
       | Honorable, do top-shelf work, bust my ass, and not expect much
       | from others.
       | 
       | I couldn't rely on anyone else to clean up my messes, or get me
       | out of jackpots. It has taught me to learn what I have needed to
       | learn, despite active roadblocks being tossed out by
       | "gatekeepers," and it also prevented me from getting mixed up
       | with some truly awful disasters; both personal, and business.
        
         | Wistar wrote:
         | Such a marvelous comment.
        
         | dustingetz wrote:
         | to sell yourself at scale you need to appeal to the lowest
         | common denominator, like politicians must. i don't think this
         | is right or wrong- idealized value = how much you help someone
         | * how many people you help. (idealized)
        
         | darkerside wrote:
         | It seems like you may be indexing on a reaction that either
         | doesn't exist, or attributing a response from individuals as if
         | it were coming from "everybody". In the latter case, it sounds
         | like you've adopted the right mentality, which is to let the
         | ball be on their court if they don't want to believe in you.
         | Unless it's actually doing you from doing something you want to
         | do, it doesn't really matter.
        
           | ChrisMarshallNY wrote:
           | Oh, I'm not doing that whole "anecdotal evidence indicates
           | totality" thing, but it has happened enough, that I've
           | decided that I'm best off, being my own advocate.
           | 
           | I actually found a company that worked with me, for 27 years.
           | I did not find them to be as gratifying a venue as I'd have
           | wanted, but they did have a similar set of values, and we
           | were able to find common ground. I found that having folks
           | that appreciated my personal values was important. They paid
           | well enough, and actually treated me with a lot of respect. I
           | think they made some unfortunate choices, as the time went
           | by, and I did my best to help them through the consequences
           | of those choices, because doing stuff like that is how my
           | value system works. I don't "cut and run." It was
           | appreciated, but I don't think it was enough to make that
           | much of a difference. Long story; tears, laughter, joy,
           | despair, etc.
           | 
           | That stability was _extremely_ valuable to me. It allowed me
           | to set things up, so I am in the position I 'm in, now. I
           | can't even imagine what it would have been like, if I had
           | spent my career in two-year stints, like everyone does now.
           | 
           | It also allowed me to work on some side projects that have
           | been _quite_ successful, in their own rights. None have been
           | monetarily profitable; but they weren 't meant to be. I like
           | to help people help people.
           | 
           | It has been interesting (at first, infuriating, but now,
           | amusing), watching people ignore my _bona fides_. I happen to
           | have a pretty vast trove of open-source material (see  "side
           | projects," above). It's really not difficult to do. All you
           | need to do is click on a link. It takes to to my SO Story,
           | which has a chronologically-sorted history of my work since
           | 1987.
        
         | gedy wrote:
         | > I'm actually fairly good at what I do, but If I mention that,
         | it comes across as "arrogant," despite the enormous ocean of
         | hubris that pretty much defines today's tech scene.
         | 
         | That's really insightful as I've definitely noticed many people
         | judge by looks and impression more than the content of what's
         | said. Unattractive/awkward people are frequently treated as
         | insufferable when they are correct.
        
         | A4ET8a8uTh0 wrote:
         | I agree probably since my experiences were similar. Things are
         | much better now, but I don't remember people telling me 'here
         | is some money; remember me when you make it big'.
         | 
         | There are definitely people who would benefit from this. Some
         | of my friends would have said 'some people just put everything
         | in their char stat'. In fact, I have this HS friend. When we
         | were growing up, he could barely turn his PC on. Now he is an
         | IT manager for a major US brand. He either has gotten better or
         | he was able to BS everyone with his cool guy persona ( and he
         | is cool ). In short, I would buy his personal IPO.
        
         | noservice99 wrote:
         | I'm not trying to be rude and I enjoyed your comment, but you
         | say you don't have the skills to humblebrag or sell yourself
         | but you're doing it pretty well here
        
         | dave_sid wrote:
         | You sound like an ideal colleague.
        
           | ChrisMarshallNY wrote:
           | Thanks. I've always thought so, but I have to respect that
           | many others think otherwise.
           | 
           | I'm extremely fortunate, in that I don't really need to "play
           | the game." I'm quite grateful to be in that position.
        
         | lisper wrote:
         | > I don't have the personal skills to "sell" myself
         | 
         | Actually you do. You've demonstrated them in this very comment.
         | Maybe you don't realize this, or maybe your self-deprecation is
         | a deliberate part of your strategy. Either way, it worked on
         | me. This comment led me to your profile, which led me to your
         | company web sites, which impressed me. I don't need an iOS app
         | developer at the moment, but if I did you'd be at the top of my
         | list of people to contact.
        
           | eplanit wrote:
           | > I don't have the personal skills to "sell" myself
           | 
           | Your comments do just that, though. Perhaps writing is a good
           | medium for you to make the point to others -- I recommend you
           | do more of it. It makes a great first impression, from which
           | you can follow-up. Be genuine in person as you are in your
           | writing.
        
           | ChrisMarshallNY wrote:
           | Thanks.
           | 
           | I like your site ( _> I wear many hats, but graphic designer
           | is not one of them_ ).
           | 
           | This looks cool: http://graceofgodmovie.com
           | 
           | Looks like you're a great conversationalist.
        
             | lisper wrote:
             | > Looks like you're a great conversationalist.
             | 
             | Thanks. That, too, is a learnable (and teachable) skill. It
             | did not (and still does not) come naturally to me. Took me
             | about 20 years of concerted effort to really figure it out
             | (and I sometimes lapse even now). But in retrospect well
             | worth the effort.
        
           | musingsole wrote:
           | To reiterate, it is very likely that those people who passed
           | on you or didn't become interested due to the lack of self-
           | marketing are not the people you would want to work with and
           | doubly are not actually offering the job you thought you were
           | applying for.
           | 
           | Grifters interview and hire grifters because their
           | org/team/company relies on the grift more than the truth to
           | make ends meet. If you can't grift, you frankly don't have
           | the skills for _that_ job. It 's an unfortunate side-effect
           | of the nature of grifting that they can't tell you this
           | upfront.
        
             | adkadskhj wrote:
             | My fear with this mindset of "They're people i wouldn't
             | want to work with anyway" is that it's easy to say that
             | when i'm not hungry.
             | 
             | If my mortgage is on the line my desire for a paycheck
             | increases. Perhaps i don't live simply enough - but i'm
             | always concerned about stability and until i'm retired i
             | will always be concerned about the next paycheck. I too
             | lack skills to feel confident about common interviews, but
             | i look at this as a fault. If i felt more confident about
             | interviews perhaps i'd feel more confident about my
             | stability.
        
               | ChrisMarshallNY wrote:
               | Unfortunately, this hits the nail on the head for a lot
               | of folks, these days.
               | 
               | It's easy for me to say that I will only work with those
               | I want. I'm set, and don't actually _need_ the work (the
               | money would be nice, but it 's not a _need_ ).
               | 
               | I refrain from being an "OK Boomer," but I would gently
               | suggest that folks starting out, devote significant
               | portions of their income to savings, and conservative
               | (not politically "Conservative," _real_ "conservative")
               | investments. I'd further suggest against looking to your
               | peers for guidance in spending habits or lifestyle
               | choices.
               | 
               | The ageism in tech is really quite puzzling. We're all
               | gonna become old. White people won't become black, men
               | won't become women (well, they can, but it requires some
               | _really_ significant dedication and resources. I have
               | friends that have made that transition. It is not
               | something for the faint of heart); but we will _all_
               | become old. The alternative is not something we like to
               | think about.
               | 
               | A lot of young people that treated their elders like
               | crap, are now, suddenly, on the receiving end of the
               | behavior. I don't find it satisfying, in any way at all.
               | It's heartbreaking.
        
               | adkadskhj wrote:
               | > but I would gently suggest that folks starting out,
               | devote significant portions of their income to savings,
               | and conservative (not politically "Conservative," real
               | "conservative") investments. I'd further suggest against
               | looking to your peers for guidance in spending habits or
               | lifestyle choices.
               | 
               | I do, but this is unfortunately not what i'm describing
               | in the post. Yea, i don't have enough to retire, but i've
               | got ~12mo full expenses.
               | 
               | My concern is a concern for the long term, the career.
        
               | [deleted]
        
               | yarcob wrote:
               | Having a few months to a year of expenses on the side
               | fixes this. When you know that no matter what happens,
               | you have enough savings to pay your recurring costs, you
               | just aren't as vulnerable.
               | 
               | You are going to find a job in a year, or you could find
               | a cheaper place to live in a year... Things just aren't
               | as scary anymore once you have enough saved up.
               | 
               | If you live paycheck to paycheck it's going to be
               | stressful no matter how big that paycheck is.
        
               | adkadskhj wrote:
               | > Having a few months to a year of expenses on the side
               | fixes this.
               | 
               | It doesn't, for me. I'm sitting at ~12mo with full
               | expenses. I budget everything, so i do me full expenses,
               | all the niceties, enterainment, etc. If i lost my job i
               | could probably stretch it to ~24mo with the fat cut away.
               | 
               | Still, i worry. Keep in mind i do partially agree with
               | you, paycheck to paycheck is a massive concern for
               | people. It's why i obsessively envelope budget. But the
               | concern i described in my prior post is a concern of
               | skill, interview success, etc. Ie, feeling unsure in
               | success of finding a job in my career path.
        
               | musingsole wrote:
               | Yeah, building a bit of a nestegg helps, but I think I
               | share your concerns on work security. And I think you're
               | right to worry. If you walk out of every failed interview
               | assuming they just weren't a fit _for you_ , you run the
               | risk of arrogance and never properly tuning yourself to
               | the industry and its opportunities. 100%
               | 
               |  _BUT_ All of an individual 's interviews are a
               | _terrible_ sample from which to draw any inferences about
               | the industry and your place in it. Successful interviews
               | give a signal. Failed /Not-followed-up-on interviews give
               | none at all. My point being, tuning and training yourself
               | _must_ be a separate endeavor from interviewing or you
               | will always be in for a bad time.
        
             | ryandrake wrote:
             | OP took the high road and the much harder path. All you
             | have to do these days is put all your skill points into
             | Charisma and bullshit your way through an entire career. No
             | other skills needed. Look at Elizabeth Holmes and that
             | WeWork guy. People were falling over themselves giving them
             | money. Generational wealth achieved by having no ability
             | bedsides running their mouth. Even normal jobs, so many
             | people just blah, blah, blah their way through the
             | interview and the job, and then by the time anyone checks,
             | they're off to do it again at a different company.
             | 
             | It's getting harder and harder to teach my kid that honor,
             | integrity and hard work are still important, when you can
             | easily find counter-examples, and they are more and more
             | becoming the norm.
        
               | BLKNSLVR wrote:
               | Especially so when these 'all talk no action' types are
               | prominently displayed on television being lauded
               | precisely for their talk.
        
             | ghufran_syed wrote:
             | I ended up working in sales for an investment bank and
             | found out exactly how true this is...
        
             | hinkley wrote:
             | One of my favorite bosses got summarily fired for getting
             | tired of the grift and telling a customer we were still in
             | analysis on something that the founders wanted them to
             | think was well underway. This wasn't the first time and our
             | code was on the way to intractable due to layers of
             | expediencies.
             | 
             | When a bunch of us quit 18 months later, we had stuck
             | around for 6 months for a bonus that worked out to about
             | 7-8 weeks' pay. As we sat around having a beer down the
             | road, I asked if it was worth it to stay the extra six
             | months. Almost 3/4 said no.
        
           | darkhorse13 wrote:
           | I had the exact same sentiment. I'm a sucker for these types
           | of reflective, self-deprecating descriptions for oneself. And
           | good for him as well, because I don't doubt his honesty at
           | all.
        
             | lisper wrote:
             | > I don't doubt his honesty at all.
             | 
             | Neither do I. That the mark of a truly great con artist ;-)
        
               | ChrisMarshallNY wrote:
               | :) It would be nice. I'm a bit "on the spectrum," and we
               | don't make very good con artists.
               | 
               | We are, however, often perceived as arrogant, rude and
               | unsympathetic.
        
               | lisper wrote:
               | Yes, I know :-) I also know (from first-hand experience)
               | that managing the behaviors that lead you to be perceived
               | that way is a learnable skill. It's not easy, but in my
               | experience, putting in the effort pays handsome
               | dividends.
        
               | ChrisMarshallNY wrote:
               | Yup. I feel as if I have done well, in that arena. I was
               | a manager, for 25 years. I managed a couple of people "on
               | the spectrum," and they were (and still are) _amazing._
               | 
               | Last night, I watched _The Accountant_ again. I really
               | enjoy that movie. It does kinda go a bit crazy in
               | advocating for autistic people (I get the feeling it was
               | written by people that studied hard, but maybe don 't
               | have a lot of personal experience), but it's really fun.
               | 
               | I wish I had a teak-lined camper and a Renoir in my
               | bedroom, but I'm fairly happy how things turned out.
        
           | dorkwood wrote:
           | I agree. I would buy some Chris Tokens.
        
         | pmkiwi wrote:
         | Hello Chris, I wanted to say that I found your comment
         | extremely good especially this
         | 
         | > I'm actually fairly good at what I do, but If I mention that,
         | it comes across as "arrogant," despite the enormous ocean of
         | hubris that pretty much defines today's tech scene.
        
           | ChrisMarshallNY wrote:
           | Thanks!
        
         | LB232323 wrote:
         | It's not a character flaw or lack of skills in not being able
         | to "sell yourself". It's a sense of dignity and pride as a
         | working person.
         | 
         | You are not a commodity, you are a human being. You may look
         | like a commodity to a business owner, but you refuse to allow
         | yourself to become one.
         | 
         | Honesty and honor are worth more than money. There is money to
         | be made in making yourself into a sort of corporate dog, but it
         | will leave you feeling empty inside.
         | 
         | I am definitely not politically conservative, but I live in a
         | conservative way as well. I don't think it's superior, but it's
         | nice to have peace and stability.
        
           | tarsinge wrote:
           | It's conservative only if you think of this ongoing extreme
           | financialization of everything as progress.
        
           | cassepipe wrote:
           | I am not really sure of what it is you call honor though. To
           | me it is a word whose meaning I don't really understand whose
           | main purpose seems to justify leaders in sending people to
           | their death at war and by men to justify murdering
           | women/other men. It is at best anachronic, at worst
           | dangerous. (Of course I am not accusing you of promoting
           | murder but that's a word that has a sad history and I hope we
           | get rid of it in the context of our daily lives )
           | 
           | https://en.m.wikipedia.org/wiki/Honor_killing
        
             | LB232323 wrote:
             | Honor just means doing the right thing, and it is also the
             | respect you receive for doing so. The history of the word
             | just means being a good person.
             | 
             | Honor in terms of death and politics is often a manipulated
             | distortion of what is right.
             | 
             | Doing the right thing is often difficult, and this notion
             | is used to manipulate people into killing each other.
             | 
             | There is honor in not selling your dignity for money, or in
             | doing the right thing when it is unpopular or difficult.
             | 
             | There is no honor in killing people to enforce an
             | oppressive power structure. It's about your personal
             | choices, it's not inherently political.
        
             | ChrisMarshallNY wrote:
             | Not sure if you are talking to me, or the parent.
             | 
             | I used the word "Honorable," as it seemed more effective
             | than "Integral" (as in "having Integrity).
             | 
             | As far as I know, that word isn't on any blacklist. If it
             | ends up there, I'll find an alternative.
             | 
             | In the meantime, I'd gently suggest that accusing decent
             | folks of supporting the murder of female children might not
             | be the most effective way to start good relationships.
        
               | cassepipe wrote:
               | Look at the indentation, I am clearly responding to the
               | parent. Especially to : "Honesty and honor are worth more
               | than money."
               | 
               | I don't think "honorable" has the same meaning and I did
               | not even see it when I read you post.
               | 
               | I specifically edited my post to explain I was not
               | accusing parent of supporting murder but maybe you were
               | already writing yours and did not see that part.
               | 
               | No it is just on my blacklist and the only way I can
               | enforce that blacklist is by trying remind anybody who
               | uses it whence it came. Not trying to launch a censorship
               | campaign by any means.
        
               | techbio wrote:
               | The word was used in a _sense_. You hijacked the thread
               | with an antonymnic homophone. Seeing this a lot recently.
        
               | selectodude wrote:
               | The root word of "honor" is not honor killings, just to
               | be clear.
        
             | nyolfen wrote:
             | honor means recognizing the divide between your self as you
             | experience it or wish it to be, and the 'you' enacted upon
             | the world, and working to align the latter with the former.
             | this can be manipulated in bad ways, obviously, but to be
             | honorable is to manifest your virtue.
             | 
             | 'honor killing' is a result of corporate identity --
             | cultural understandings of the self as inseparable from the
             | family that created you. western culture generally does not
             | carry this view, and treats people as individuals.
             | individual honor is generally not burdened by the actions
             | of your relatives unless one plays a direct role in them.
        
             | ghufran_syed wrote:
             | I personally like this definition, from one of Lois
             | Mcmaster Bujold's books: " Reputation is what other people
             | know about you. Honor is what you know about yourself....
             | The friction tends to arise when the two are not the
             | same....There is no more hollow feeling than to stand with
             | your honor shattered at your feet while soaring public
             | reputation wraps you in rewards. That's soul destroying.
             | The other way around is merely very, very irritating."
        
               | hug wrote:
               | Say, what is honor? 'T is the finest sense
               | 
               | Of justice which the human mind can frame,
               | 
               | Intent each lurking frailty to disclaim,
               | 
               | And guard the way of life from all offense
               | 
               | Suffered or done.
               | 
               | -
               | 
               | Wordsworth.
        
               | mrkramer wrote:
               | Like Charles Cooley said "I am not what I think I am, and
               | I am not what you think I am. I am what I think you think
               | I am."
        
           | awillen wrote:
           | Wow, this is a really mean attack on people who can sell
           | themselves... I think I can do so reasonably well, and I
           | wouldn't say it has anything to do with what you're
           | describing here.
           | 
           | I don't have dignity or pride? That doesn't make any sense...
           | I can sell myself because I really believe in the product.
           | I've done lots of good work in my life and I have genuinely
           | useful skills that can help people or companies.
           | 
           | And I don't have honesty and honor? Seriously? You seem to
           | think that all selling is the type that unethical used car
           | salespeople do. That is wrong. Good salespeople are experts
           | who work with you to understand a problem and provide a
           | solution to it. This is what I'm doing when I sell myself -
           | you need a product manager, and I've worked on many similar
           | projects to the type that you need help with, ergo I think
           | I'd be a great fit. Again, to call that dishonest or
           | dishonorable is simply wrong.
           | 
           | There's nothing wrong with disliking selling yourself, nor do
           | I think it's a character flaw - different people have
           | different communication styles, some of which are not very
           | self-promotional. Nothing wrong with that. But to make such
           | vicious attacks on the ethics of anyone who can sell
           | themselves is just baseless and cruel.
        
       | mollems wrote:
       | The bit about monetizing one's influence / social "capital"
       | reminds me of Cory Doctorow's novel _Down and Out in the Magic
       | Kingdom_ (which is a great read regardless).
       | 
       | https://craphound.com/down/Cory_Doctorow_-_Down_and_Out_in_t...
        
       | lifeisstillgood wrote:
       | Is it just me, but isn't an Income Share Agreement ... taxes?
       | 
       | Is this just a failure of government to supply the upfront
       | investment in its citizens so that they pay enough tax in ten
       | years?
        
         | 0x4d464d48 wrote:
         | "Is it just me, but isn't an Income Share Agreement ... taxes?"
         | 
         | No. Its profit sharing akin to how companies do so by issuing
         | dividend paying shares.
         | 
         | So far as the government is concerned theyre just looking out
         | for their most important stake holders, wealthy individuals and
         | monied interests, by keeping taxes extremelly low. Universities
         | being underfunded to the point they need to raise tuition to
         | the point where students need to take on crushing debt is a
         | byproduct of that.
        
           | lifeisstillgood wrote:
           | I think we are violently agreeing?
           | 
           | Profit sharing with your citizens is basically government. I
           | think ...
        
             | cortesoft wrote:
             | Taxes and government are mandatory profit sharing, these
             | agreements are voluntary. Whether that is good or bad is up
             | for debate.
        
             | 0x4d464d48 wrote:
             | We agree that its wealth redistribution by anyother name.
             | Certainly.
             | 
             | The difference is that taxing is done in the name of
             | public/government interest whereas profit sharing is done
             | in the name of private/individual interest.
        
               | lifeisstillgood wrote:
               | what i am trying to say is that if a government supplied
               | sufficient upfront investment in education (which is
               | basically what's going on here) then no student would
               | have an incentive to add an additional lieu on their
               | future earnings.
               | 
               | and governments should see education if their citizens as
               | an investment repayable through future taxes
        
               | mkingston wrote:
               | One complicating factor: the repayment on this investment
               | could very well be collected by another government,
               | should said citizen leave.
               | 
               | A similar problem to that of businesses financing
               | education of their current or prospective staff.
        
               | 0x4d464d48 wrote:
               | Functionally, sure. Im totally on board with that and
               | think its both practical and noble.
               | 
               | What Im saying is that although taxation and dividend
               | distribution are both wealth redistribution from an
               | individual/entity with capital they are different in wthe
               | underlying reasons for why they are done and who the
               | intended beneficiaries are.
        
       | mattzito wrote:
       | There's literally nothing in this article that you couldn't
       | replace "token" or "coin" with "contract" or "membership" and
       | have it work exactly the same. The idea of selling contracts
       | against future income is interesting but putting the blockchain
       | here is yet another solution in search of a problem.
        
         | bsanr2 wrote:
         | Putting the contract on the blockchain allows it to be traded
         | like, but not as, a security while the SEC et al. drag their
         | feet on classifying crypto-tokens as securities. Something like
         | that.
        
           | joosters wrote:
           | So it's a way to dodge the law? (while ruining the
           | environment, of course)
        
             | meowkit wrote:
             | No. What law is being dodged here?
             | 
             | Again, no. Brute force Nakamoto consensus is bad for the
             | environment, but lumping all crypto into that bucket is
             | ignorant/intellectually dishonest.
        
               | [deleted]
        
         | tjs8rj wrote:
         | I'm usually in total agreement about blockchain just being
         | stuffed anywhere, but observationally, there must be a good
         | reason why blockchain shows up in these situations so often.
         | There's definitely the hype factor, but blockchain does have
         | value in that it's reasonably trusted by average people
         | (perhaps unlike signing a contract everytime you wanted to
         | purchase a piece of a creator - coins gamify it), and it's easy
         | to setup trust systems - Alex setup his own token in a weekend
         | for a "human IPO", rather than running through the cost and
         | time of properly setting it up with a lawyer and contracts.
         | 
         | Maybe blockchain's biggest value proposition right now is that
         | it's lightly regulated and has hype, so using it greases the
         | wheels when growing an audience or building a usually regulated
         | product.
        
           | prox wrote:
           | Author mentions the ponzi scheme, and quite right. As long as
           | the general trust is there and the investments are on the up
           | and up you're fine.
           | 
           | But the insidiousness is once you're in, you're in. Once you
           | bought 4000 Tupperware to resell (insert any pyramid scheme
           | here) , you can't find fault in it, and when it crashes
           | you're burned.
           | 
           | I don't want to bash blockchain, there might be interesting
           | use cases, but I haven't seen it yet in it's current
           | implementations.
        
             | VRay wrote:
             | It's sort of useful for sending money to Asia without
             | losing 1.5 to 5% on transaction fees, but that doesn't
             | involve actually investing in it
        
           | pavel_lishin wrote:
           | > _blockchain does have value in that it's reasonably trusted
           | by average people_
           | 
           | I don't think you and I would agree on what constitutes
           | "average people".
           | 
           | > _it's easy to setup trust systems - Alex setup his own
           | token in a weekend for a "human IPO", rather than running
           | through the cost and time of properly setting it up with a
           | lawyer and contracts._
           | 
           | Easy to set up, but how easy it is it to enforce?
        
         | mooreds wrote:
         | I get the point of the shocking title.
         | 
         | But what he describes, hedging risk, is not a new concept. It
         | is something that people do every day when they diversify
         | investments or buy insurance. ISAs and "person as tokens" just
         | push this to new levels.
         | 
         | > In such a scenario, every career becomes a pyramid scheme.
         | 
         | In other words, the rich get richer--scalability works.
         | 
         | One thing the author left out (or that I missed) is that
         | scalability increases overall wealth. If I have to learn
         | calculus from an average teacher because of geographic
         | limitations, and then my child gets to learn from the best
         | calculus teacher in the world, in the latter case the world
         | gets richer because the same knowledge is arrived at quicker at
         | less expense. (Of course, there's fallout for the average
         | worker, but this is something we've been dealing with in the
         | developed world for decades and still haven't figured out.)
        
         | seibelj wrote:
         | It's protocol-ized finance. Sure you can do it all old school,
         | but that takes a ton of effort and makes your situation a
         | unique snowflake. If you do it the way everyone has agreed on
         | with tokens, all of your tokens plug into the existing
         | infrastructure, is standardized, and makes the cost of capital
         | go down.
         | 
         | Why people continually can't understand this, and keep saying
         | "buh buh buh mysql and lawyer fees! No need for blockchain!" is
         | a failure of imagination.
        
           | bradleyjg wrote:
           | Standardized contracts trade all day every day on exchanges
           | all over the world. That's how everyone doing legitimate
           | business has agreed to do it. That's where the existing
           | infrastructure is. That's where serious capital is.
           | 
           | Tokens, on the other hand, are the favorite tool of scammers.
        
             | natchy wrote:
             | How is a large insurance company refusing to pay on a
             | legitimate claim any less of a scam?
             | 
             | I don't think cryptocurrency is near mature enough to
             | replace traditional contracts, but technology changes a lot
             | in 5-10 years.
        
           | PragmaticPulp wrote:
           | > Sure you can do it all old school, but that takes a ton of
           | effort and makes your situation a unique snowflake.
           | 
           | Many of the situations required in this article still require
           | real-world contracts to make them work. The crypto tokens are
           | additive on top of the contracts, but they don't replace
           | contracts.
           | 
           | Someone could sell you an NFT that represents 15% of their
           | future earnings over the next 3 years, but the blockchain
           | can't enforce that. Even if we had all payments occurring on
           | the blockchain, the person could simply create a new
           | blockchain wallet and give their new address to future
           | employers, claiming $0 earnings for their original blockchain
           | address. The NFT itself is only valuable if supported by the
           | weight of real contracts in the real world with real
           | enforceability.
           | 
           | Crypto tokens only stand alone when the crypto token itself
           | is being traded. Actual value still requires consensus that
           | the token is worth something (Bitcoin, Ethereum) or a real-
           | world contract that stipulates that whoever holds the token
           | has a claim to some actual rights or asset.
           | 
           | It's likely that most of the real-world contracts for
           | something of actual value have stipulations that the crypto
           | tokens are null and void if determined to be lost or stolen.
           | The crypto tokens are largely a distraction.
        
             | athrowaway3z wrote:
             | I think this entire idea is insane, but that's not the
             | argument.
             | 
             | >Many of the situations required in this article still
             | require real-world contracts to make them work. The crypto
             | tokens are additive on top of the contracts, but they don't
             | replace contracts.
             | 
             | There is no duality of 'real-world contract'/'digital
             | contracts'. The question is if a digital document and
             | signatures are accepted by a judicial system. In 50 years
             | every judicial system will accept some format of digital
             | contracts.
             | 
             | The potential upside of 'tokenized' and
             | standardized/automated legal documents are: less ambiguous
             | interpretations, automatic resolution, simpler trading, and
             | easier cross-border contracts ( to some extent ).
             | 
             | All of this is possible by human hands, but legal systems
             | are not known for their digital innovation. ( They don't
             | even use standard 'diffs' to negotiate contracts )
        
         | danans wrote:
         | > The idea of selling contracts against future income is
         | interesting
         | 
         | Isn't that also basically what any interest bearing
         | loan/mortgage is?
        
           | bradleyjg wrote:
           | No, those are personal debts (in one case secured). There's
           | been on and off again interest for as long as I can remember
           | about creating personal equity interests (i.e. the payout
           | depends on how much the person earns). Now with
           | blockchain(tm).
        
             | danans wrote:
             | I agree that there is a difference in the collateral
             | involved, but the collateral mostly functions as a risk
             | adjuster (which is why mortgage rates are on average lower
             | than personal loan rates: if a borrower defaults, the house
             | can be sold to recover part of the principal).
             | 
             | At the end of the day, a mortgage is a contract that allows
             | the borrower to purchase a home in exchange for a share of
             | their future income, paid as interest on the loan.
             | 
             | Personal loans also already exist today. The primary
             | difference in the scheme in the article is that it is
             | blockchain-based, instead of bank-based, and the trust
             | establishment mechanism between borrower and lender is
             | based on personal marketing, not credit agencies.
             | 
             | Perhaps a bigger factor is that if the currency in which
             | such a loan is offered is deflationary in the BTC style, it
             | is a disadvantage to the borrower who will see the cost of
             | their loan escalate over time, so this should be accounted
             | for by lowering the interest rate.
        
               | bradleyjg wrote:
               | The difference isn't the collateral, a personal loan like
               | a credit card is unsecured.
               | 
               | It's how you calculate the payment. In a loan it doesn't
               | matter how much money I make, I owe what I owe.
               | 
               | In the proposed equity arrangement I owe a percentage of
               | my income. If I don't make anything, I don't owe
               | anything. If I'm the next Musk, I owe billions.
        
               | ghaff wrote:
               | >I owe what I owe
               | 
               | Which may depend on an external factor if say it's a
               | variable rate loan pegged to the prime. At some level,
               | this is just using a different formula to determine the
               | payment.
        
               | danans wrote:
               | > a personal loan like a credit card is unsecured.
               | 
               | That's just another way of saying 0 collateral.
               | 
               | > In the proposed equity arrangement I owe a percentage
               | of my income. If I don't make anything, I don't owe
               | anything
               | 
               | I agree the calculation is different, but I doubt there
               | is a lender that isn't going to demand the return of
               | their principal at the least.
               | 
               | Depending on the enforceability of such a contract
               | (questionable and depends on the legal teeth they have in
               | the respective jurisdictions) and the likelihood of
               | default, it would significantly alter the risk profile.
        
               | bradleyjg wrote:
               | It seems like you don't understand the difference between
               | debt and equity.
        
               | ghaff wrote:
               | >I agree the calculation is different, but I doubt there
               | is a lender that isn't going to demand the return of
               | their principal at the least.
               | 
               | You win some, you lose some. Presumably the
               | person/organization making the loan has calculated that
               | the upside pays for the students who end up paying
               | nothing.
               | 
               | To the sibling comment about debt and equity, they're not
               | necessarily as different as some assume. In this case, if
               | I called it debt with a payback schedule based on ability
               | to pay up to some cap, does that make it into something
               | fundamentally different just because it's unusual?
        
               | bradleyjg wrote:
               | There are hybrids all over the place. Preferred stock is
               | a classic example.
               | 
               | But there's still a basic framework before you get into
               | the messy middle. Taxonomies are a useful technology,
               | calling everything a loan obscures more than it
               | clarifies.
        
               | ghaff wrote:
               | Also convertibles.
               | 
               | And I don't disagree even though I had a long ago finance
               | professor who hammered on the point that a lot of
               | financial instruments weren't necessarily that distinct
               | from each other just because they have different names.
               | But, yes, we can generalize about the distinct
               | characteristics of normal debt and normal equity.
        
               | [deleted]
        
       | dharma1 wrote:
       | It's hard to say if personal tokens will take off or not, but I'm
       | almost certain many more things will be turned into financial
       | instruments in the future. Almost anything that can have provable
       | (current term is "on-chain") revenue (future or current) can be
       | "tokenised" and sold, bought and speculated on. Our definitions
       | of employee, employer, nature of work and contracts, our
       | definitions of companies, shares and financial instruments are
       | arbitrary - we are just used to them. They will change.
       | 
       | I can absolutely see a future where people work on (and own
       | pieces) of many projects, revenue share is tied much closer to
       | measurable value creation, and "tokenised" future cash flows in
       | almost anything measurable and enforceable (ie. on-chain
       | activity) have liquid markets from very early on.
        
       | ausbah wrote:
       | is this suppose to be good? this sounds awful. it just reads like
       | finance and tech have eaten literally everything, down to a
       | person's life
       | 
       | I guess there is more "freedom"? but that seems to come at the
       | cost of stability and more winner take all scenarios
       | 
       | like a lot of this stuff isn't new, but the degree to which is
       | seems prevalent reads dystopic
        
         | tdeck wrote:
         | This is simply an example of an ecomonic/political system
         | creating problems (in this case lack of capital needed to start
         | a career), then creating "solutions" to those problems (debt,
         | commodification of people as investments) that reinforce the
         | system and enrich its key stakeholders.
        
       | backtoyoujim wrote:
       | I can foresee a nation-state utilizing these as a citizen credit
       | score, and utilizing them to control behavior.
        
       | stereolambda wrote:
       | A couple thoughts if we were to "scale" the income-sharing
       | contract concept beyond a novelty:
       | 
       | 1. If there is, say, a hundred or even ten possible candidates to
       | pick from, due diligence becomes brutal. Health information, full
       | social media dumps, detailed financial disclosures etc. Also
       | rampant discrimination. If it is unregulated, it's basically what
       | insurance companies would like to be doing but with no limits.
       | 
       | 2. If it is for five years and with no big payout at the end, the
       | value of such a contract (via discounted cash flows) is likely
       | pretty low and accordingly would be the funding. Note that
       | LambdaSchool owns the whole "equity" of a person (no splitting
       | into X shares) and gives you a service (at scale) instead of
       | cash, so it probably makes sense for them.
       | 
       | 3. It would be fun to see the accounting sorcery possible for
       | shielding and offloading your earnings to other entities, to pay
       | your investors (?)... preferably nothing.
       | 
       | Besides, people, as opposed to companies, are rarely truly
       | profit-maximizing entities. Maybe in the second year your guy
       | decides to be content with a mid-range salary and devote all his
       | time to studying meditation. But hey, theoretically you could try
       | to escape inflation with such a crazy scheme if the interest
       | rates on "real" bonds would stay very low...
        
         | ghaff wrote:
         | >gives you a service (at scale) instead of cash
         | 
         | Yeah, this sort of payback scheme probably needs a few
         | characteristics to make sense which apply in this case.
         | 
         | - Incremental cost of a student is relatively low. So even if,
         | say, 25% of the class doesn't pan out, they didn't cost you a
         | lot that has to be somehow passed on to the other 75%.
         | 
         | - Likelihood that graduates can get at least a workaday job at
         | a decent salary are pretty decent. This probably wouldn't work
         | for film school.
        
       | gattr wrote:
       | I'll mention the SF novel "Black oceans" [1] again. It describes
       | a scheme where someone extremely driven and confident of success,
       | but utterly poor, can make a deal with certain shady
       | organizations, which - in case you don't make it and repay them
       | in agreed time - will simply harvest you for (very valuable)
       | organs.
       | 
       | [1] https://en.wikipedia.org/wiki/Charne_oceany
        
       | moonbug wrote:
       | what a hideous vision.
        
       | natchy wrote:
       | > _For example, if Elon Musk succeeds in landing the first person
       | on Mars, his coin price should theoretically go up. And if, in
       | contrast, he makes a racial slur during a press conference, his
       | coin price should theoretically go down._
       | 
       | Yes, and when people are making emotional/ideological financial
       | decisions, I'll buy the dip.
        
       | ramblerman wrote:
       | I think the author explains perfectly the risk of the future
       | where we see more and more winner takes all scenarios.
       | 
       | But the conclusion seems a bit off. Basic income seems like the
       | only recourse IMO
        
       | sturza wrote:
       | If each individual would be treated like a public company, where
       | others own a small part, it also makes sense for this individual
       | to have a board. A group that protects the interests of both the
       | individual and the investors. If this was true, decisions of the
       | individual would have to pass the board and soon enough the
       | individual would have their own advisors on what to do next: play
       | a game of soccer with friends(injury risk) or go for a walk in
       | the park. It's just fun to imagine a public individual's life.
        
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