The first publicly traded company, the Dutch East India Company (VOC), once failed to return promised capital to its shareholders, causing unrest and protests from investors. Faced with high capital needs for naval fortifications, VOC avoided liquidation and instead offered dividends, initially in spices, then gradually transitioned to cash payments. This suggests a company’s flexibility in dividend payments can influence investor confidence and valuation. In the crypto sector, the discussion revolves around how much revenue should be returned to token holders, with some proponents arguing for 100% payouts. This raises concerns about management alignment with token holders and potential misallocation of funds. Unlike traditional equities where revenue distribution methods are clearer, crypto investors often lack transparency, making it crucial to evaluate tokens based on current cash returns. As seen with VOC investors, demanding greater share of earnings might be essential for building trust and justifying token valuations in the evolving crypto landscape.

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