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.
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.
Profits come from fees from the Iconomi funds.
Quote
ICN tokens will receive weekly dividends in the form of ETH from all ICONOMI revenue streams. In stage 1 they will consist of management and/or performance fees from the funds managed by ICONOMI. While the performance fee is, as the name suggests, dependent on the actual performance of an individual fund, a management fee is paid to ICONOMI as long as there are assets in the fund, regardless of its performance. This is a key benefit of being an ICN token holder compared to investing directly into a certain investment fund.
They're not taking a cut off the top of the price of an ICN token, which seems to be what you're wondering.
The reason they're sent in ETH, specifically, is because your ICN exists on an Ethereum address, as part of an Ethereum contract. So the profits may come in various forms (BTC, fiat, etc.) but they're converted and distributed as ETH because that's where your ICN is, and where you hold your private keys.
That's how I understand it anyway
