Is it 20% of $1 Mill = $200k
Then ICN shares cap is 87 mill (correct?) so..
$200k / 87 million (shares) = 0.00229
so 1 ICN = $0.00229 if Iconomi generates $1 mill in profits?
Making 10,000 ICN $22.99 in realized returns per year?
Also, is profit actually profit. What I mean is: Does Iconomi consider profit the amount after paying for employees, renting the office, expenses, etc.? I asking because if Iconomi generates $1million in revenue, after expenses the true profit is much less.
Again, just hoping to make sure expectations or in the right place and seeing how much to invest. Love the team, love the idea, hope to love the returns.
-AJ
They will use the money raised in ico to pay all expenses for first ~5 years
ICN gets these fees:
1) 20% performance fee from ICNP taken from realized profits
2) 3% management fee from ICNX taken regardless of profit/loss
3) 0.3% to 3% management fee from user-created arrays depending on if user sets the total fee at 1% to 10%
4) any fees generated by fiat gateway
The fees generated by 2), 3), and 4) are not based on performance, but rather the amount of assets deposited into the arrays and the trade volume of the fiat gateway
A conservative example:
1) ICNP generates $1 million profit in a year = $200k to ICN
2) ICNX holds on average $10 million in assets for a year = $300k to ICN
3) user-created arrays hold on average $5 million in assets for a year = $15k to $150k to ICN
4) fiat gateway does $5 million volume in a year = maybe 1% fee so $50k to ICN (maybe they will set this at 0% fee to begin with in order to build volume)
I'm not sure if the fees on user-created arrays were fully explained yet. I assumed it's a management fee like ICNX, but maybe there is a possibility for user-created performance arrays that take a performance fee.
ICN lives on the same exchanges and in the same wallets as altcoins, most of which have 0 earnings. ICN price will largely be based on speculation. Dividends is just the icing on the cake.
Thanks for the input. So using those numbers now: $200k + $300k + $50k (conservative) + $50k = $600k. And 100mil not 87 mil. We arrive at $0.006 per ICN. Making a 10,000 ICN investment $60. This would mean dividends would yield a 2% return, which is good imo compared to traditional investments. The real money is the value of ICN it would seem.
I believe the user created arrays will take some time to generate a sizable load. On the flip side, I can see ICNX generating >$100mill under management once it passes the tipping point. Passive investments are where everybody seems to be putting their money.
Will be very fun to watch Iconomi develop in the next few years.