The decision depends on capital availability, risk tolerance, FDV expectations, and governance maturity. Loan plus call option structures trade long-term control for short-term capital efficiency.
Retainer and working capital structures trade capital intensity for transparency and stability. The table below summarizes key dimensions:
| Dimension | Loan + Call Option | Retainer + Working Capital |
|---|---|---|
| Upfront cash cost | Low (no cash fees) | Higher (retainer + working capital) |
| Token allocation | Required (loan) | Required (as part of trading capital) |
| Capital risk | Borne by market maker | Borne by project |
| Control over strategy | Low (MM decides) | High (jointly defined) |
| Price alignment | Via option strikes | Via profit sharing |
| Transparency | Variable | Typically higher |
| Best for | High-FDV, cash-constrained | Stablecoin-rich, stability-focused |
| Downside risk | Embedded sell pressure | Capital depletion |