As you know, the YUP token has a utility cycle. Businesses buy YUPs to place tasks which get rewarded to the users. Thus, why a cycle comes into play. Users can liquidate tokens as disposable income with businesses purchasing YUPs to create tasks. In order for this to show significant results we have to keep increasing clientele and the amount of active businesses on our app. This is continuously growing on our application, so we are on our way, but it takes time. However, this may not result in an increase in price but more of a stable price as the system more reflects buyers matching sellers in it's perfect form.
It's common knowledge to understand if there are more buyers than sellers, price goes up. CH is committed to the utility type system as it creates natural volume. But how can we spark more buyers than sellers? This could be through a hybrid solution by combining both a utility and a security.
Lets look at the concept of royalties. This represents a share of revenue being paid out as dividends. In a traditional way of handing out royalties, a lawyer would create a royalty document where we place the name and address of the person receiving the royalties. They would also showcase us a bill with their name and that shows their proof of address. They then sign the document and then voila! You have a royalty agreement promising we payout a % of revenue. This doc can be used for every person we want to give royalties and they sign it, and our lawyer takes it with two copies, one going to us and the other going to the royalty holder. Now, when an investment happens for royalties, they need to send the money from their bank to the business bank account. The bank is required to do aml/kyc thus the transaction is verified and it's a real person. This is already organized on some exchanges (in a way replacing the bank process). However, when you look at IDEX where YUP is traded this is not happening. You just connect your wallet and that's it. So this is less of a viable option legally. So here is the idea we are contemplating for 2019.
Our goal for the end of the year is to make December the first month we make profit. Right now we are close to break even with expenses and revenue each month. With a company goal to increase revenue by 20% this month and every month following. It's important to begin making profit before initiating revenue royalties to all token holders (if the idea is suitable and legal), so as a company we sustain our operational costs.
Our lawyer would create a royalty agreement or better yet we call it a "revenue sharing reward agreement" allowing any person in the world to sign it digitally placing their name, address and uploading a proof of address such as a bill. For users like yourself earning YUPs this is easy, as you are not giving us money or buying from someone else to be a YUP holder. Thus, name and address we would assume is sufficient as you invested "time" not "cash." However, if a YUP holder buys from IDEX and wants to receive our "revenue sharing reward" this becomes more of a grey area. So your input on this matter will be valuable.
We want YUP holders to be able to stake their tokens in our app and receive a share of our companies revenue. If you are a YUP earner on our app, you're ready to go. But if you bought from IDEX or our ICO, you would need to sign up and stake your tokens on our app. Dividends would be paid in ETH. This could be even paid out every month, quarterly or a half year (we would have to decide). The ETH dividends would show up in your profile to withdraw. Right now % of revenue we would give out is not yet determined. First, we are looking into how we can legally do this or legally bend the rules by inventing a new system. I see no reason, why we can not digitalize a traditional royalty agreement with an e-signature on our app, that would be the same thing as signing in person (if a YUP holder stake gives their name address and proof of residence (a bill uploaded).
This is when you guys come in:
- What do you think of this idea?
- Would people hold because they want to earn dividends while businesses buy our token to place tasks, thus creating more buyers than sellers?
- How can we legally do this? I understand we could just use an aml/kyc plug in tool, but costs become associated with this towards our operations.
- Can we do it ourselves from what we proposed? Or do you have a better idea?
- Do you know other companies doing a hybrid security/utility solution?
Please take your time, ask a friend who is a lawyer, even do some research. Keep in mind this would be planned and executed for 2019 by finding the best solution.
We look forward to your feedback!