[caturopath]

Why is this structured as a loan? It sounds like it's structured in such a way that he isn't interested in getting paid back. Is it so he can exercise control in a weird scenario like a buyout? Is it some weird tax thing?

[colechristensen]

Something like an unusual sort of ownership. If signal was sold, the buyer would be on the hook for all of the debt.

Startup funding that looks more like debt than stockholding isn’t all that weird, and has various implications for exit scenarios.

If you wanted to create something similar to a nonprofit, this is a way you could do it while protecting it from vultures.

[aaron_m04]

Interesting! Where can I read more about this technique?

[toomuchtodo]

https://en.wikipedia.org/wiki/Shareholder_rights_plan

[tw04]

I'm assuming so that if moxy gets hit by a bus and someone else tries to step in and monetize it, he gets his money back. If it remains free and open source I'm sure he'll forgive it.

[jandrese]

My first thought is it must be a tax thing, although I guess it could be a hedge against them selling out depending on how the agreement is worded.

[reactor]

Its just for books. Loan is still an asset, but donation is not. He will have this asset for abt 50 yrs in the book, that's useful if he want raise money for something else. Pretty sure he don't intend to get it back.