Before you get deeply involved with Krakin’t, you should also be aware of some of the negative aspects that mutable tokens may bring. These are some of the red flags you should always watch-out for.
Everything can be controlled
Contract owner has full control of how the mutable token is managed. This can easily lead to minting tokens rather than mining, and can also include taking tokens away from people’s accounts. Furthermore, even if none of these worst-case scenarios happen, you should always know who the contract owners are. In this case, trusted centralized authority must exist and Krakin’t, in this manner, is not a trust-less Token. Furthermore, such a design may be the source of the unwanted FUD and trolling.
Agents Running a Mutable Token are Just… Companies
Agents managing the token are always centralized. It does not matter whether the community is reaching a consensus or whether a single agent is maintaining a token. The point is, the boundary of whatever runs the token (unless the strong A.I.) is finite and can be defined as a cluster. This implies that, in some manner, the agent is always centralized, and therefore just another company or organization running the project. The same applies to Krakin’t.
Centralized Authorities can be Corrupted
Corruption can happen in many different ways, and it mainly represents swapping someone else’s disadvantage to someone else’s advantage (and vice versa). Furthermore, it does not have to be directly associated with technology in question. For example, assume that Krakin’t is to be sold for a very good price to some other authority. Once sold, the red-flag alert becomes active when the private keys are also sold with it. The new management has the power to do whatever they want and to corrupt Krakin’t. They may do it on purpose or simply because they are not competent to maintain Krakin’t.
Need for trust cannot be avoided
Although mutable tokens can be placed on trust-less networks, it does not mean that the token itself is trust-less. Since centralized authority has a full control over token, it means that the trust must be earned, maintained and that need for trust cannot be avoided.
