CFG Royalty Token

Centrifuge Governance Proposals
1

Is there any interest in providing CFG holders another option in connection with the current proposal to convert to common equity?

A. Current proposal. 1:1 conversion from CFG token to common equity.

B. Option B. 1:1 conversion from CFG token to common equity and also receive a new CFG “royalty” token that receives 3% of sales. This creates a strong incentive to buy CFG and convert to common equity.

2

That would almost certainly make CFG a security, subject to SEC registration and regulation, which is why protocols avoid any type of discretionary holder’s revenue, programatic buy back and burns is the best you could hope for. But since CFG is on the way out why would the Foundation bother?