Hey James,
Is the plan to distribute future revenues to the supernet holders by paying dividends through the NXT asset exchange?
if so, instead of distributing the future revenue as dividends to Supernet holders, have you thought about providing a buy support on the exchange instead?
This would really help interms of avoiding supernet being classified as 'securities'.
As per the Securities and Exchange Act of 1934 , "The term 'security' means any note, stock, treasury stock, bond, debenture, certificate of interest or participation in any profit-sharing agreement".
So instead of paying dividends, if instead a buy support on the exchange was used, then that would help everyone to step around the definition of securities with respect to Supernet.
Curious to hear your thoughts on this?
Initially it would be pushed through as dividend, so as NXT or mgwBTC assets. Next year I want to go to an on-demand gift cash out where anybody can receive their accrued gifts. So, we need a way to track each accounts gifts
if it only had NAV this would work
but with the revenue sharing, where is the buy support?
where does the capital come from?
remember it is being sold at 101% of book value, so any PE or PS or dividend ratio valuation that is above book value is good, but the SuperNET wont have the capital to do this.
Now, the revenue producing part of the SuperNET is not being paid for, so how about this!
There will be a NAV bid to provide liquidity for people. This is what the sharkfund0 does. Everytime the NAV is changing by a meaningful amount I calculate the NAV and update the bid/ask spread. This allows anyone that needs to a way to convert to BTC whenever they needed to at NAV. It will also put a floor on the floating market price, which shoud trade at the market's expected future valuation discounted by risk factors.
So, yes, this is a very good idea! I like it and dont know why I didnt think of it. I dont think it exactly fits into any specific spending authority so we would need to get a vote to ratify this floor. Essentially it will be a nearly infinite buy wall at the NAV, probably only in BTC. Now the traders dont have to worry about it going below the NAV!
So this is making for a much more stable situation, I believe all will be happy.
Now for the silly USA rules that causes much headaches. I claim that since the investors didnt pay for any of the assets that any revenues from the assets are simply gifts from me to all the SuperNET holders. So, it is not profit sharing, aha! the wording says "profit-sharing", but it is actually revenue sharing. Further it is a revenue sharing gift.
I hope this is making it safe for you in the USA. I imagine there is no such thing as a gift based on revenue sharing, so I am hopefully it is not outlawed yet. If you find that USA regs do not allow you to own the TOKEN, please do not buy them. I want to make sure that we are following all of the proper rules.
so please see if there are any problems with a NAV based investment where you are getting a gift based on revenues, maybe this is like those kitchen appliance gifts that you are getting for making a deposit?
I hope this helps
James
P.S. In any case you are not supposed to be expecting any gifts! So there is no problem until the revenues are flowing.
