The Two Cap Tables of Crypto Companies: What They Are and How They Relate to Each Other by @ttunguz

The Two Cap Tables of Crypto Companies: What They Are and How They Relate to Each Other by @ttunguz

Science of forgetting: Why we’re already losing our pandemic memories

As we delve into the topics of cap tables in crypto companies and the science of forgetting, we may not immediately see the connection between them. However, upon closer examination, we can find common points that shed light on the intricacies of memory and ownership structures in the crypto world.

In the world of crypto companies, there are two types of cap tables: the equity cap table and the token cap table. The equity cap table determines ownership in the company, while the token cap table represents ownership of tokens within the crypto ecosystem. These two cap tables are intertwined but have distinct features.

The equity cap table primarily focuses on ownership rights and distribution among investors and stakeholders. It follows traditional principles seen in classic equity cap tables. However, in the realm of crypto, there is an additional element known as the treasury. The treasury is a collection of tokens acquired by the foundation through various means, such as running validators or stakers. These tokens play a crucial role in incentivizing network participants and driving network effects.

On the other hand, the token cap table exhibits a different dynamic. The community allocation takes center stage in this cap table. It is designed to reward validators and stakers, encouraging their active participation in the network. The community tokens dominate the token cap table, showcasing the importance of network participants in the crypto ecosystem.

Interestingly, both cap tables have elements of ownership and incentivization. While the equity cap table focuses on traditional investors and stakeholders, the token cap table emphasizes the involvement of community members. This highlights the unique nature of crypto companies and their decentralized structures.

Now, let's shift gears and explore the science of forgetting. Our brains are wired to forget. It is the default mode of operation for our memory systems. Norman Brown, a cognitive psychology professor, explains that forgetting is a basic assumption we can make about human memory. Our brains go through three phases when it comes to memory: encoding, consolidation, and retrieval.

During the encoding phase, our brains make changes in neurons to store new information. This process happens in memory centers like the hippocampus and other areas associated with emotional memories. However, much of this information is lost unless it goes through memory consolidation, which often occurs during sleep. Consolidation helps stabilize memories, making them more long-term.

Memory retrieval involves reactivating memory trace neurons in the hippocampus and cortex. Our memories are centered around our life stories and what personally affected us the most. However, the more memories we accumulate, the more challenging it becomes to recall specific events. New memories interfere with older ones, making them harder to retrieve.

Additionally, the saliency of events plays a role in memory recall. Salient emotional events or life-threatening situations are more likely to be remembered vividly. However, when events are uniform or lack distinct characteristics, they tend to blend together, resulting in unclear memories.

This brings us to the topic of the pandemic and the potential for forgetting. As a society, many people may not want to hold onto their memories of the pandemic. The future-oriented positivity bias makes us view the future more positively than the past. Remembering the past is influenced by our current emotions, knowledge, and attitudes. This bias may impact how we look back on the pandemic and shape our actions in the future.

In the context of memory, cultural artifacts play a crucial role in preserving collective memories. Books, movies, statues, and museums help anchor historical events in our collective consciousness. Without such artifacts, memories can fade and be lost within a few generations. The same may happen to memories of the pandemic if not preserved through various mediums.

Now that we have explored the two cap tables and the science of forgetting, we can draw actionable advice from these topics:

1. For crypto companies, it is essential to carefully consider the distribution of tokens among investors, stakeholders, and community members. Balancing ownership rights and incentivization can contribute to a healthy and thriving ecosystem.

2. As individuals, we can actively work on preserving our memories by documenting our experiences. Whether it's through journaling, creating art, or engaging in conversations, capturing our thoughts and emotions can help us remember important events in our lives.

3. Society should prioritize the preservation of cultural artifacts that document significant moments, such as the pandemic. Books, movies, and other forms of media play a crucial role in preserving collective memories for future generations.

In conclusion, the seemingly unrelated topics of cap tables in crypto companies and the science of forgetting intertwine to reveal important insights. Understanding how ownership is structured in the crypto world and how memories are formed and forgotten can guide us in making informed decisions and preserving our collective experiences. By incorporating the actionable advice mentioned above, we can navigate the complexities of ownership and memory in a rapidly changing world.