Quote from: fractastical on April 29, 2015, 04:11:20 PM

Quote from: Chang Hum on April 29, 2015, 04:39:39 AM

The PDF you wrote in conjunction with Jerry Britto, if I've interpreted it correctly, seems to imply that a DCO would fail the Howey test because of the power you give to "members" in voting decisions, therefore the investment isn't reliant on the sole efforts of a third party. I'm struggling to understand how this is any different to a common stockholder?

It's partially a matter of rights, partially a matter of technology. The reality is that 'common stock' in a classic context is secured via the existing legal system instead of the blockchain, which means that any sort of voting needs to be run through lawyers. This makes it extremely expensive to run a stock holder vote, etc., which ultimately leads to less involvement from stockholders. Also, as I'm sure you know you only have the possibility of having public stock holders once you are on a public market (i.e. post-IPO)

So the difference may not be so much a difference in intent, but a difference in result due to better technology. New technology allows better and more granular control from more participants.

Thanks for the reply, but you're missing my point. What I'm saying is the main thing you say legally differentiates you under a DCO, from being a security, doesn't.

Also a moot point but votings very simple for common stockholders, I received several voting forms from my brokers in the post yesterday, they're laid out with tick boxes for voting decisions, which you can submit by mail, telephone or online at www.proxypush.com/IBUS. You authorize someone to give a proxy vote on your behalf, I can't understand why you think this is run through lawyers?

I'm planning a crowdsale by the end of the year and have come up with a different conclusion on how to separate myself from a security, while still giving a solid incentive to investors. I'd be interested to hear what you think, the plan may change, and as of yet I haven't received any legal advice on the matter.

I'm looking into selling vouchers for one of my products which can be redeemed with me at anytime, however I'll propose that the money raised be used for marketing my product and a portion of the proceeds from sales go into a free prize draw. Every voucher sold will represent 1 prize draw entry. Prizes issued will be my products, as well as Bitcoins up to the value of $50 (limited by law on a free prize draw).

The voucher should hold it's value, as long as the price is a fair reflection of the underlying product, while offering a premium bonds style investment that relates to a return on future profits. With a hint of sarcasm I've coined the acronym for this profit sharing structure, "DPPV" (distributed, product and prize vouchers) Tongue

http://www.gamblingcommission.gov.uk/pdf/prize%20competitions%20and%20free%20draws%20-%20the%20requirements%20of%20the%20gambling%20act%202005%20-%20december%202009.pdf