> I find the words confusing [1] and incompatible [2][3].
1 - for Handshake, VCs are 'used' primarily as a signal to price the coins - like in Bitcoin, the asset having a price helps on many dimensions, for example, security (miners mine it).
2 - in Handshake, unlike most VC projects and startups - the capital raised was not used to pay salaries or enrich the developers building it - development was funded by other means. This is what is meant by "one-way non-destructive 'proof-of-burn'" -> in fact, it's not really a burn but a generative action since funds were donated to FOSS projects that put the capital to use!
1 - for Handshake, VCs are 'used' primarily as a signal to price the coins - like in Bitcoin, the asset having a price helps on many dimensions, for example, security (miners mine it).
2 - in Handshake, unlike most VC projects and startups - the capital raised was not used to pay salaries or enrich the developers building it - development was funded by other means. This is what is meant by "one-way non-destructive 'proof-of-burn'" -> in fact, it's not really a burn but a generative action since funds were donated to FOSS projects that put the capital to use!
That's why 1 and 2 are not incompatible.