I want to know the drawbacks of profit selling scenario. Need an advise of the community.
Here is the scenario:
- Suppose, Alice issuing X amount of tokens using ERC20 compatible contract.
- All the tokens that Alice will issue will be worth Y% of company B profits.
- Every quarter Alice is calculating the profits, takes Y% of the company profit and distribute that among token holders.
How would that work from legal side and with taxes. Is it possible? I heard of the case of Polybius bank, but as far as i got it, they operate only with cryptocurrencies, and have not much to do with traditional world.
I would appreciate any kind of help or insight on that.