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Fat Donglai's 4 Billion Distribution
Many people claim this is a reversion attempt of utopian experimentation.
My understanding is that all the answers lie in Fat Donglai not expanding outside Henan province.
Everything has an impossible triangle.
Fat Donglai's most probable scenario is that expansion is very difficult.
Internet companies pursue maximizing shareholder interests and are responsible to investors and capital, so they need to go public, which creates an urgent need for expansion. At its most extreme, this evolves into token issuance—the purest form of capital competition.
Fat Donglai is essentially the epitome of capitalism: providing an ultra-excessive distribution to its community. It takes the portion of shares that would normally exit through an IPO and uses it to secure political survival in Henan, tying into the local ecosystem.
40 billion is:
- Meituan's profit over 30 days
- Pinduoduo's over 12 days
- Tencent's over 6 days
Not much, right?
It all depends on who gets to share the cake.