In this blog we advocate issuing tokenized debt securities, in other words, your own currency. So the question is clearly "why not equity". Well the biggest problem is that equity relies on offering an unlimited upside, so it is intrinsically not democratic and oriented toward abusive exploitation
Equity is either underpriced when it is issued, or overpriced when it peaks. It is a game of russian roulette, and really unnecessary. Furthermore, it is an inherently unstable governance structure. Do you really want to be in bed with millions of other people, some of whom take up most of the bed??? -- NOT FUN.
So here we guarantee limited upside, non-competitive returns, and recognize potential loses or negative returns. Here, if your credit gets downgraded, you pay back less, not more. Well, really those two things are the same event. We don't recommend charging or offering more returns to address bad credit. We recommend scaling down.
If you have to pay too much interest(credit inefficiency), then you are overleveraged. You should be scaling down, brinksmanship is for people who don't know how to lose. Once you know how to be a loser, you don't have to be a bully.
We Increase Total Wealth by creating more assets, not by appreciating the assets that exist. Making your credit instruments callable against a flow of repayments is only really a way to bootstrap your own currency. The final result being, no need for repayments at all, only defining succession. That's how you know that you've MADE IT, when society just accepts your credit because they know you are doing Good Shit(tm).