What am I missing here?
Initial overfunding is locked giving us/ icn holders as a group shares in the fund causing icn to gain value as a token.
Future
funding would give the investors shares in that fund that could be liquidated when you choose.
Thats how i see it working.
You are not in the Performance Fund by default by buying ICN tokens. You simply collect fees and dividends from it. The PF is an option, the IF is an option, and all the other funds to be created will be optional.
I disagree. All icn holders will have profits from the perforance fund as thats where the overfunding goes.
Its just locked in so you gain by your icn having more income giving it a higher market value.
What do you disagree with?
ICN holders will have profit from ALL funds on the platform, in a form of fees collected - this is the main idea of the ICO. Since we "over-funded" the platform, and since this over-funded money came directly from us - we should have the ability to liquid it just like every other fund that we or anybody else will invest into.
Still haven't seen a valid argument against that last sentenceThe question/argument there is null because one cannot liquidate what he does not own.
what do you mean does not own? It's like saying - hey, here, take X amount of money from me, go invest it and you will owe me just ~20% of the profits you make. The initial X amount you gave me is locked up forever.
How does that make sense?
it's not "locked up forever"... you also collect 20% in straight management fees, above and beyond, and totally separate of any profits. Fees will happen regardless of profit, at the rate of 20% APR
It's either locked or we will be able to withdraw it somehow. So which one is it? I don't talk about the profits that will (hopefully) be made from the investments - they are irrelevant to the matter of discussion now, which is the initial money raised to seed the fund
Okay, I'll give this one more try....
The dividends are paid every week ... THAT is the ONLY extent of "withdrawal" of seed funding from the PF, at the rate of 20% APR.
PF participants simply buy tokens equaling a share of profits from said funds, adding or subtracting to that pot under a separate formulae. (yet to be revealed) This stops a PF buyer to be able to withdraw seed funding, and at the same time, increases the chances the fund will grow at a much faster rate, bringing more profits to PF token holders and more dividends to ICN token holders.
Thanks for the another try, it clarifies things. If one follows your statement, then basically performance fund money that has been raised throughout the ICO period is platform seed money that in the meanwhile will be invested in order to generate profit for shareholders - money that if and when needed will be burned for operation costs, just like the 10,000BTC?
If that is the case, and I would like someone from @Iconomi team to comment on that (here, or in the official channels) because it is not clear enough (IMO) who is subject to the seed money that goes into the performance fund.
Another thing I'd like to understand is why ~20% of profits is considered to be paid back as dividends? Where does the other 80% go? Further seed the fund?
I do believe that further clarification from official team members is required. From officail post on medium.com:
"If 21,000 BTC is collected, the assets collected during the ICO will represent 73.3% of the total ICONOMI.PERFORMANCE size — the first batch will be capped at 15,000 BTC. The rest — 4,000 BTC — would be available to invitees."
Could you please explain the incentive for ICO participant to invest twice in the same fund - first time by the ICO money and second time with the invitation? There has to be more than just the fees as an incentive