As far as I can tell, it was a trick to remove coin from circulation, locking it away where it could not be used again. The fact that people have tokenized these beacon coins on other chains to trade show that people want their money back!
No, it really doesn't. This is akin to saying because people take out second mortgages they really want their money back that they bought their house with.
Being able to leverage a committed sum of money via collateralization is as old as financial systems themselves.
If you can find any specific reasons for your take I'm very open to hearing about them?
In the world of hard money (bitcoin), leverage is extremely dangerous, you may never be able to repay the loan. You would not want to borrow a house worth of bitcoin in a 2nd mortgage -- you could never pay it back!
In the legacy financial world, 2nd mortgages just lead to private inflation of the fiat money supply (the money is being conjured out of nothing to pay for an asset that was already paid for). Nothing is produced, except some energy is burned updating centralized databases.
Having systems where both realities exist is great.
I'm a fan of hard money. It is honest.
I understand what they wanted to achieve, and I understand that they cannot achieve this. Seems that burning absolutely enormous amounts of energy is the only secure way of doing it. I guess rather than fight the universe, we better find a way to do it cleanly!
As far as I can tell, it was a trick to remove coin from circulation, locking it away where it could not be used again. The fact that people have tokenized these beacon coins on other chains to trade show that people want their money back!