Day 2-7: Polvos sells his 5000 BKC in small increments for BTC. At the end of the 7th day he has 20.000 BTC. He announces that he will send a dividend to anyone who was holding BlockShares at the end of Day 7.
Here, I suppose Polvos can sell the BKC in any exchange that accepts BKC.
After selling, he or she would have to transfer the BTC proceeds to his or her wallet (B&C client) and then distribute the dividends.
So the only ways to lose the BTCs are the followings:
- the exchange is hacked (in case the exchange is B&C, the likelihood of being stolen is very low since that would imply collusion between several trusted signers)
- his or her client is hacked.
I am correct?