Broadly speaking, I'm supportive of public companies issuing stock and other regulated securities on Bitcoin, as a way to make it easier for them to directly raise bitcoin capital. I also understand the appeal of having stablecoins like USDT settle and trade on Bitcoin, though I don't expect stablecoins to be necessary in the long-run.

I do have concerns though about the Taproot Assets protocol, created by Lightning Labs. Namely, it seems to require the user or some "universe" to back up the proofs representing each transfer. Without the full history going back to the genesis transaction, your assets are lost.

Is anyone else concerned by this? If a user loses these proofs and they aren't backed up elsewhere, or if they die and their heirs have the seed phrase(s) but don't know where to find this data, the user's assets could be lost forever.

With USDT, it seems like Tether will run its own universe that will back up this data, but what's to prevent them from losing it? If they lose a proof, either by purpose or by accident, and the user does not have a copy, there is no way to prove the data ever existed. Cynically, you might even say that it could be in Tether's interest to "lose" a proof, as that would reduce the amount of redeemable USDT outstanding.

Personally, I'm not sure if I'd be comfortable holding a significant quantity of Taproot Assets under this arrangement. I'm not a fan of the memecoins created by Runes, but as a token standard, at least the data is all onchain and seems to be relatively compact.

Thoughts?