Synthetix has gone dao, meaning this is now just code run by 10,000 ethereum nodes across the world with no one responsible for it and with curation being by token holders who vote on things.
As such Tesla, Apple, Nvidia, Alibaba, Turkish stocks, Russian ones, European stocks, Latin American ones, anything you want on global markets can now be tokenized.
The process is simple in as far as it’s basically dai, but for all these stocks which you track through a price feed, an oracle. But can something like SpaceX, which doesn’t have a market value, be tokenized?
If Musk wants to, then he can go through the paperwork and months of negotiations with SEC and then maybe get a greenlight to tokenizingly bring it to market.
Yet this is a very new space and SpaceX is a frontier company doing pretty important things, so naturally this straight tokenization would be a pretty big leap.
As such, to make them less nervous this space could potentially do ‘play’ tokenization, as in giving it market value but not quite formally.
Tokenizing Non-Market Assets
The task is difficult because there’s no price. So how do you set the price, especially in cases like here where Musk doesn’t have to tell us anything because it’s a private company.
Well then you force Musk to tell us things, and obviously you do so in the Nakamoto way, nicely, willingly, and even happingly.
You start first by deciding how much Musk makes with every rocket he launches. It’s about $70 million we think per rocket launch, at least on average.
Rocket launches are a very public thing, and unless Musk wants to go to very great lengths, there’s nothing he can do to hide them. So we get an estimate of rocket launches x $70 million, let’s say about $2 billion a year.
Now we have what we call a sacrifice. To start off this market we need some locked assets that act as the initial collateral with the price feed here a bit more complicated than just connecting to an official market because there isn’t one.
So we’ll need tokenholders to perform the function of a jury of sorts that through some sort of formula says a rocket has launched and therefore price has gone up by x, or it was a failed one and thus price has gone down by x.
A Chainlink basically, but instead of that being just a jason parser of official apis, it can allow for human input through some vote of sorts with all token holders then voting if there is a dispute or incorrect information somehow gets through the process.
Alternatively, there should be official apis of rocket launches maybe from NASA and if there aren’t, one should be set up because this is the digital age.
That can make the fact establishment simpler but how much profit they make per launch would presumably change depending on good or bad management.
So once there’s a market, although a very watery one, Musk would presumably be very happy to tell us how much such profits have changed by increasing or decreasing liquidity in the dapp.
On Synthetix, the stakers are betting against the, in this case, sSpaceX holders. In that if the price rises, stakers are more liable now and need more snx for susd and vice versa.
There can also be iSpaceX, that being shorting it, with stakers losing or winning depending on whether s an i SpaceX holders collectively win or lose, plus there’s fees on top to stakers.
So there’s plenty of opportunities here for
Musk the market to tell us many things, and thus based on those things there can be better valuation and thus price setting, with this pre-market trading then moving to an official price setting api once SpaceX goes public.
As this would be a token, that means if you want to, you can just lock it in a wallet and forget about it in a store of value sort of way or as a diversifier with the market initially being a bit subjective, but presumably just temporarily as big companies usually do go public.
In the same manner you can do this for other things, the art market as a whole for example, and you can maybe even let it freely move instead of it having a fixed price like api-ed markets.
You can also likewise give house prices in London or in Europe a market, with here there being property ETFs you can track.
And you can also price as well as tokenize startups as a collective, with the difference being the token is a bearer asset you hold, instead of some bank IoU like stocks are.
Meaning whether Musk likes it or not, it is probable we will owe a bit of SpaceX once builders get around to dapping this, although we won’t own it ‘officially,’ but it’s close enough for our claim to all this space stuff.