Don't you think this is a good thing? I certainly do.. ETH is a very valuable currency and more stable and liquid than any new token that is still becoming established. Ethereum is going to have a long an happy life and will likely outlive most other currencies.
This means the derivative will always be valuable, regardless of the current value of the REAL tokens themselves.
"rewards" - you mean dividends? Hm.. They ll paid in ETH? I know, that centra also will pay dividends in ETH. Dont know what is the reason for this...
There is no reasonable answer unless you take the line about ETH outliving other cryptos to mean that the native token will die but hey at least you got your reward......Also still trying to figure out how a liquidation event results in the payout/protection implied when the OP speaks of this as a secured token.
What an earth you guys are talking about? Coin that gives ETH dividends dies? You mean it will drop in price? Who cares, more cheap coins that gives dividends for holders. I will be one of the first in the line trying to get it sub ico price if that ever happens.
Wouldnt it be better to have a token that pays dividends in the native token such that it requires a company go out into the secondary market and conduct a repurchase to make the distribution? Isnt that a price supportive value growing event?
Well, one advantage of giving dividends with ETH and not in the native token, is that the price will rise, if the token holders get eth, then they won't have RPP tokens to DUMP, reiving dividends is like having an airdrop, people will just sell them at whatever prices will get them money, so as a result, token prices drop, if token holders are paid in eth, they will just dump ethereum XD.
That’s so ridiculous. Why would it result in an automatic dump? Why wouldn’t people hold to receive more dividends over time? Some might dump but why do we assume that every recipient would dump? I mean the assumptions here are wild. Also isn’t it the company’s responsibility to support the value of their token for investors? Investing in your native tokens value growth seems to me a better move. Imho. But maybe I’m just not going to be convinced.
REAL tokens are finite. At some point there would't be any REAL tokens left to pay the dividends to the investors. Sure, you are investing your tokens into the projects but on the same time the team also has to keep them or at least a part of it as you always can sell your property share again if you want. And no one is holding you back to buy new tokes with your earned ETH.
This is all good, of course, what will be paid in ETH, but how much percent of the profits will be paid as dividends? And with what periodicity? I somehow did not find this information.