Royalty paying token

[rudkru]

Hi everyone,

 I would like to get some feedback and opinions about a crowdfunding project that is going to be launched soon. It is a micro lending business in Eastern Europe looking to expand their operations. They have a solid track record, team and financials. So far they have raised necessary funds via bond auctions in Nasdaq.
Now the company plans to offer investing in its business via bond type royalty tokens. It will qualify as a security token sale.

A royalty token represents its owner’s rights to receive a particular share or percentage of company’s revenue for a certain amount of time with a monthly payout.
 
This case - a fixed share of all income generated by the loan portfolio excluding principal payments with monthly pay-out. The future value of the token is related to the expansion of the issuer’s business. It grows as company’s market share, portfolio, and revenue stream grows. It has nothing to do with the margin or profit in particular.

Each royalty token’s right to receive revenue stream is valid up to its maturity when it will be redeemed by the issuer at the nominal token value. The buyback program will start from month X and go on gradually month by month until the last token is redeemed on month XX. 50% of company’s monthly operating profit will be used for token buybacks.

All tokens will be numbered by serial number in the row, ex. 1.,2.,3.,...
First in, last out approach will be used. Which means that the lower the number token has - the longer its maturity period and revenue stream will be. So, in the last month before the token buyback concludes, the first 5% of token buyers will receive all of the revenue stream.

The investor who makes the fastest contribution will be rewarded by receiving the top tokens with the longest maturity thus greater future value. All investments will be ranked by the timestamp when received in ICO wallet.

The revenue stream % rate will be determined by Dutch auction, starting with lowest and with each week raising the %.
The sum of money equal to 10%-30% of all revenue generated by the company each calendar month will be used to buy ETH which will be distributed across token holder wallets by the set date the following month.

I think this is a great option for Ethereum holders to get some yield. What do you think? 

[jacafbiz]

I really don't understand why people just love scamming others, Royalty paying tokens, this is just another scam in making design based on Ponzi scheme, I just hope one of these lending platforms get exposed soon

[jimbo2000]

I really don't understand why people just love scamming others, Royalty paying tokens, this is just another scam in making design based on Ponzi scheme, I just hope one of these lending platforms get exposed soon

I don't see how a royalty paying token is necessarily a scam as many coins are offering something similar, even proof of stake is similar to a royalty. However when coupled with a lending business then I'd 100% agree that this seems like a scam and you should steer clear of all lending platforms.

[rudkru]

Thanks for the replies! I understand your concerns about the scam, but this is not the case.

The project will be as transparent as possible, following the best practices. A quarterly audit report by a Big 4 company will be done. The funds will be in a multi-sig wallet, accessible quarterly,  only when certain kpi's are met and verified by an independent law firm.
As I mentioned before, this is a real company, with a solid business,not just a whitepaper. Currently they are considering different options how to scale further and token sale is just one of them. Since it will be a security token, it will comply with all the financial authorities and regulations, adding extra safety for investors.

What other concerns or problems do you see arising?