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Author Topic: What's most attractive for Tokens backed by assets  (Read 91 times)
TwinRock (OP)
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September 06, 2018, 11:08:45 PM
 #1

Hi All,

We are working on a token that is backed by certain financial assets which produce income.

We wanted to know if paying out dividends to token holders is attractive, if it causes the investor to receive lower returns overall, because of many fees involved to convert the dividends into cryptocurrency in order to pay dividends to the token holders. Also, this removes the flexibility to invest in assets that don't immediately produce income but have a greater upside in the long run.

Alternative solution is to not pay dividends and keep growing the pool of assets, which increases the overall value of assets that backs the token. So ultimately, the token should have higher intrinsic value because it is backed by more assets with greater overall value.

Taking this into consideration, do you prefer:
A) getting dividends but potentially be exposed to higher fees and a lower overall return, or
B) skip the dividends and have the profits reinvested to gain higher intrinsic value.

Your feedback is highly appreciated.

Best,

TwinRock Team.
cryptonight777
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September 07, 2018, 01:34:53 AM
 #2

To me and I think most people in crypto community feel the same way, its all about getting that bigger return since we are taking bigger risks. I wouldn't care if there was no dividend so I would go with B. But I better be making good money on my investment  Grin
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