Can anyone explain how dividends are made exactly?
Icojaka already wrote this few post back... i will coppy his post for you once mmre:
Regarding dividends... dividends are distribution of profits. In order to have profits, ICONOMI must first launch its products and generate revenue. By the end of this year we will launch two investment funds (ICONOMI.index and ICONOMI.performance)... This is where first fees will come from, but we expect profits to seriously ramp up later in 2017 when full OFM platform launches with many fund managers running their respective funds...
Okay so I mean the fees that are collected, do they market sell ICN then market buy ETH to distribute? Are the coins exchanges into ETH like DAO could therefore the coins are burned? The first option would be awful for ICN traders.
best thing is to just read the FAQ and whitepaper, then ask some specific questions on the sub reddit
I did both of that but I didn't get a clear answer from the paper or reddit (https://www.reddit.com/r/ICONOMI/comments/5gyhkk/dividends_question/)
I'm not trying to spread FUD but that answer kind of needs to be clear for traders/investors.
I have tried to get specific details on this aspect of ICNP dividends over a month ago:
https://www.reddit.com/r/ICONOMI/comments/5bfdtw/icnp_questions/
"Finally, at some time in 1Q 2017 you will make your first dividend payment to the original ICO participants who funded the ICNP original $4.6M. Say for example you invested $500K of ICNP money in the ICO of a new coin. In the week after launch, that coin doubles in price so your $500K investment is now worth $1M, giving an ICNP profit of $500K total. 20% of that $500K or $100K is the amount of profit to be distributed among the original ICO participants.
WHERE DO YOU GET THIS $100K TO DISTRIBUTE AS ETH DIVIDENDS?
Specifically, do you sell 10% of your holdings in the new coin at the end of the first week and hold on to the other 90%? Or do you get the money for dividend distribution from some other source? And if this, WHAT other source?"
You can read Jani's answers at the above link. I thought his answers were a little vague. I still think this question needs to be addressed in more detail.