You propose a world where cyberchuck tokens are useless, but cyberchuck crypto tokens are readily traded on the open market. Cashing out requires people to value the token underneath, and that's a function of who governs the token (and what they let you do with it), not crypto vs. not crypto. Although currently "crypto anything" seems to boost the price of your asset, even if it's just Blockchain Iced Tea.
Fraud reduction by looking at the open market ("nobody's selling these $1 tokens for anything above a nickel!") isn't plausible either - you can do the same thing today by looking at YouTuber payout rates. Those aren't public but it would take the collusion of 10,000+ top tier YouTubers, many of whom don't like YouTube very much, to lie. If YouTube were ever threatened by a more open model (ex. on Patreon, you can see actual income for some creators), they might switch to stay competitive.
> utilize your newly acquired cyber-chucks to generate yield by providing liquidity, collateralizing it, etc).
I can do this with USD so we're really talking about that X day period where my tokens haven't become USD yet. Maybe there is or will be a crypto coin or five that do what Bitcoin was supposed to do - low fees, high volume, easier and cheaper than ACH or Paypal. But if those fees are low enough, I don't necessarily need to keep by cyber chucks as cyber chucks. I could convert to USD and then back into cyber chucks, if cyber chucks is the token of choice. But I think it's far more likely that out of the hundreds-thousands of current coins, the one you pick is going to be a loser in terms of long term utility. Safer to convert to USD and then into whatever today's hot coin is.
Even today, some stock options have surprisingly little price discovery (low volume, big difference between bid and ask price). And those are real, regulated financial instruments with a direct objective relationship to present and future value. I think they can be traded across the whole market too (buy at broker A, sell to someone at broker B). I don't get how, outside of speculation, Company X's coin is going to be worth more than that. Nor will it have better price discovery - there are multiple billion dollar companies who trade stocks and options.
In current "company scrip" modes (ex. casino chips) people generally don't hold onto the not-cash. They exchange it for USD within days. If MGM decides to screw over their customers and cut the conversion rate by 10x, (1) that might be illegal, (2) the % of total customers in history that will be affected are small.
We're also generally proposing micro- or mini-payments - if it's high dollar like a salary, you'll just get USD from working at a company. How many people would take a job at 1-to-1 equivalence in a crypto token instead of a USD salary? Today, I can buy stock in my company using the USD they give me. It's much safer to me because I can choose how much to put in. If I got paid in CompanyCoin that would be a return to the company scrip days. I'd be tied up in risk for minimal gain. If the coin is stable it doesn't matter if I can only invest my USDs every payday.
I admit I don't know much about ERC20 specifically. I still don't see why you can't make a useless token on ERC20. Analogous to making an app that works with all bank accounts that nobody wants to use.
> Note that in Gitcoin's case, GTC serves as a governance token which gives voting rights for their DAO.
People talk about using crypto for democratic community governance. I said this in another comment chain:
> You imply a kind of 51% governance of an open source or community driven project. History shows that community projects fork all the time over personal differences, and majority does not always rule. Google2 coin won't matter if people get mad at Google2's governance and fork it for Google2.5 coin.
Open source is generally driven by a small core of contributors. I don't see crypto voting being anything but a rubber stamp on the current pool of high activity users. I don't hate the idea here but I also don't see much point.