5% annually on a small portion of our allocation to customers isnt enough to get people excited about the payouts they would receive
Right, so the fact is that your properly-licensed US-based exchange is holding a Prime Controller solely so you can entice customers.
It is absolutely nothing at all to do with 'protecting the network', because a PC does nothing of the sort.
The truth is that you aren't doing it 'for the community', you aren't doing it to 'protect the network', you are doing it solely so you can offer your customers an incentive to trade XPY on your exchange which, as has already been acknowledged by Adam Matlack, lends legitimacy to XPY it would otherwise not have.
So has Cryptsy done anything about their Prime Controller yet, or at least said what they intend to do?
I'm getting the feeling they are hoping that this thread drops the topic and moves on to other things so they can continue with their plan to entice customers into trading XPY on their exchange by way of this incentive of a share of the PC poop-loot.
Even if they're intending on pleading ignorance about XPY being a scam should the three letter agencies start knocking heads, I'm sure that their decision to legitimise-by-proxy and play a part in the overall authority and decision-making process of this coin network is going to make it awfully hard to distance themselves from it when feces and fans collide.