I followed along as the GameStop, Robinhood and clearing house problems happened and realised the financial system isn't very transparent. I was incredibly surprised when Robinhood blocked purchasing of GameStop because their clearing houses required them to post more collateral. So when this happened I thought, would it be possible to have stocks for companies on a Decentralized Exchange? I looked around and it seems a few companies have products that claim to track the price of an equity on an exchange. I'm pretty suspicious about that though.
What if instead of issuing shares on an exchange, a company issued tokens, and those tokens represented ownership in the company. So far this sounds like an ICO, but I promise it's different.
Revenue Sharing ICO
When you buy into an ICO, the issuers generally have no obligation to do anything for you. The people buying it mostly seem to buy it just because they expect it to go up in value. I'm proposing you do an ICO for a company that is already generating revenues, and the company issuing the ICO deploys a smart contract that sends revenues to the owners of the token.
Example - Angus' Crypto Clothing Store
Let's say you're running an online store called "Angus's Crypto Clothing Store" that allows people to purchase clothes using USD-T. Let's also say this store generates profits of 10,000 USD-T per month.
You decide you want to sell some of your company's equity so you issue 1,000,000 ACCS tokens that represent ownership in your store. Then you deploy a smart contract that apportions profits to all the holders of the ACCS tokens at the end of the month. At this point you are holding all the tokens, so at the end of the month you will receive all the profits.
Then you can list these tokens for sale somewhere. Let's say a dude called Warren comes along and buys 500,000 tokens from you on March 2nd 2021. At this point you own 50% of the company and Warren owns 50% of the company.
Then at March 31st 23:59 UTC the smart contract triggers to share profits. Let's say that month 10,000 USD-T in profit was acquired. Then 5000 USD-T will be sent to Warren and 5000 USD-T will be sent to you.
- Is it even possible to write a smart contract that keeps track of who owns what tokens?
- Can you trigger a smart contract at the end of every month?
- Is anyone interested in buying a token that gives a stable return? Isn't everyone who buys crypto chasing 100x gains?