Is it OK to reserve Counterparty asset names?
Have you seen asset names that are reserved by others, and are wondering why? Do you feel this is a problem for the community? In this video, I discuss the ...
What's up party people? Chris DeRose, Community Director of the Counterparty Foundation. Here in Vizcaya, which is a nice house/park in downtown Miami. Today I wanted to discuss assets. More specifically asset name reservations, also know sometime as asset squatting. So I guess the question would be: what is it to reserve an asset name and why is it okay? So let's begin. It's a controversial practice, a lot of people don't like it.
A lot of people refer to the asset name reservation as a squatting process, but people are quite clearly speculating on the value of the asset names. It's conceivable that some of these names are worth more than others, in the same way that real estate has more value in some locations than in others in the same with asset names. We saw a lot of this happen with domain names certainly in the '90s and even today. People have been ahead of the curve and have been reserving these names, not with the intent of actually using it themselves, but for the sole intent of selling it to another person. Some people feel like that's not in the spirit of community or that's it's not in the spirit of what's a good economic function and I disagree. I think that it is a very productive economic function.
For me, the way that I see it is this, there's a lot of people that put faith in a name and they put faith in that asset because it's a good asset. So when somebody reserves it, someone takes it for the purpose of speculating, they are removing it from the community from people who aren't going to buy it. They're removing it from misuse, and they are performing a function by which people who have put the most money into that name are themselves receiving the faith commensurate with that investment. These names are quite clearly assets and they quite clearly have value. I think that the bigger problem here, what really kind of screws with people, is that these asset names are undervalued right now. They're majorly undervalued.
You have names that are probably going to sell for some significant amount of money being sold for $5 or $10 or something like that. That's kind of what we saw with the domain name business as well. If you think that that's not a disparity well consider this: what if perhaps somebody sold a domain name or sold an asset name for $100,000 that they themselves spent $95,000 for. In that case that $5,000 was a risk that they received for holding that name and reserving it and putting the money in that they deserve. Maybe you feel that if they paid $5 for the domain and sold it for $100,000 or for the asset name they're somehow undeserving. Maybe that's true or maybe there's just a fire sale going on for asset names, and people are just hating on the people who took advantage of it.
I don't know, but that's probably the way I see it, is that they are performing a function, they are taking these names out of the economy and they are safe guarding it for people. They're safe guarding it for the people who have the interest in actually using it for a good end. Sometimes too when I look at some of these asset names that people are using and I say to myself, "Well that wasn't really the right asset name to use." And they weren't spending the money on the asset name that would be the obvious asset name, it kind of pulls into question how serious are they about their projects. So when people reserve these names outside of that community and they do this function, that's what they're doing is the they're providing a trust service, and they are protecting these asset names from misuse. It's pretty simple I think, but what do I know? Ask some questions, give them to me.
Tell me what you think of this video. Tell me what your answer is. Put some comments on and let's talk about it some more. My name is Chris DeRose. My email is firstname.lastname@example.org and you can tweet me @derosetech.
So subscribe to the channel if you like this video and keep those questions coming guys. Thanks for listening.