Hi team, good news that the project has attracted some large investors. But please explain one thing to me, a potential small investor - I thought that the only way you plan to collect the money to start the project is via ICO, and that you are planning to distribute 100% of the profit to token holders. However, if you get other large investments outside the ICO, how would you distribute the profits then? Then it wouldn't be 100% of profits to token holders, as the large investors outside the ICO would also want their part of profit? Please explain.
Hi there.
The ICO is essential to the success of envion, but the envion machine has more moving parts to it. Envion distributes 100% of profits from Proprietary Operations (PO)—where envion owns and operates Mobile Mining Units—with our token holders.
If that were the only line of business, there would be no money to run the company.
The other part of the business is Third-Party Operations (TPO)—where a customer purchases MMUs and envion operates and maintains the mining units. Envion distributes 35% of profits from TPO mining operations. This has always been where envion's operating revenue comes from.
There are some important things to note about the difference between these two revenue streams:
First, the growth rate for PO is more or less fixed because there is a one-time investment, the ICO, and a 25% reinvestment policy that written into the smart contract. Once the production run of PO MMUs financed by the ICO are deployed, growth will be steady at 25% forever.
Second, the growth rate for TPO is not fixed. The more customers that want to purchase MMUs, the greater the growth of profits for envion AND for token holders who earn 35% of the TPO mining operations revenue. This growth rate is infinite and PO is isolated from it. That means if it grows, token holders earn more money. If it shrinks, PO will never be threatened—they are two separate business arms and, as indicated in the whitepaper, a separate business entity—a subsidiary of envion AG—will even be created to manage PO.
Lastly and most importantly, these are not two competing business divisions. The PO MMUs will be the first to roll of the production line and the first to be deployed and installed. The TPO units will only help to further corner the market and assure that envion gets the best deals, continues to innovate our product, and becomes and indispensable service provider to blockchain-dependent industries.
So this is a positive development for token holders. More investment in the company means a healthier envion and a larger TPO operation which will increase dividends. That was always part of the plan and now it's just happening faster than we could have imagined.
Tl:dr Token holders profit's are fixed for PO. TPO growth is unlimited and token holders get 35% of TPO mining operations—that's the part that will scale much faster via these new deals. There is no competition between the two.