BitCoin Investing: The Revenue Stream Agreement

[timoriensis]

Since I',m a newbie to forum this is the only place I can post this.

This is a rough draft for a new kind of financial investment instrument based on Bitcoin that would offer an alternative
to traditional stocks, bonds. I welcome any feedback, my goal is to create a formal proposal than start a software project
to implement this idea.


BitCoin Revenue Stream Agreement (RSAs)


We have two parties, a company and an investor. In a RSA the investor enters an agreement were he gives X number of bitcoins to a company. The company agrees to give a microscopic portion of its sales to the investor on a recurring basis either point of sale or percentage of revenue
 (using millionths or even billionths of bitcoins). It will take Y duration of time for the investor to recouple the investment and after that it becomes a source of recurring income for the duration of the contract.


Variations within the contract:

    Exchange rate [fixed|agreed upon rate]:
        One of the criticisms of Bitcoin are the wild changes in the exchange rate. To mitigate this the agreement may fix the rate of bitcoin
        exchange to the local currency at the time of the agreement. Or the exchange rate may be set custom between the two parties.

   Contract duration [lifetime of company|N number of years|N number of years after break-even]
        Obviously the longer the duration the more advantageous for the investor and the worse for the company and visa versa. The duration
        could also be variable depending, such as 3 years after the break-even point for the investor. Startup companies could offer a lifetime
        RSA for a large sum of money up front whereas an established firm would probably offer a fixed duration agreement.   
       
   Revenue Stream[point of sale|percentage of sales]:
        The revenue sent to the investor could be a small percent per item sold (potentially thousandths, or millionths of a percent), or a percentage
        of revenue.


Advantages from the point of view of the investor:
* Not subject market fluctuations like a stock or bond
* The risk is minimal for a company with stable revenue
* The ability to capture a huge revenue stream from successful startup companies.
 
Advantage from the point of view of the company:
* Raise money quickly
* No company control is transferred like a stock, an RSA has no ownership.
* Obligations are based on sales success unlike a bond which must be payed regardless of the success of the company


Please, I need your feedback to help develop this idea or refute this idea so I don't waste my time

[PenAndPaper]

How is this based on bitcoin?
You mean that from each sale the share of the investors will go directly to their wallets?
This can't work for millionths of bitcoin, and billionths of bitcoin don't even exist   (Bitcoin goes down to 10^(-8))

[odolvlobo]

What you are describing is basically an amortizing loan - like a mortgage, but with some additional features. The fact that repayment depends on the success of the company increases the risk to the lender, and the company will have to pay more for that feature.

[timoriensis]

How is this based on bitcoin?
You mean that from each sale the share of the investors will go directly to their wallets?
This can't work for millionths of bitcoin, and billionths of bitcoin don't even exist  Tongue (Bitcoin goes down to 10^(-8))

BTW 10^(-8) power is pretty small. But I was not aware that there was a limit to how small
you could divide a Bitcoin. Thank you.