the answers are clear in the FAQ and WhitePaper
So what does the FAQ and whitepaper say is the answer to my scenario I outlined to Jani below? I never found a clear answer there.
"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?"Mal,
this answer is simple, I apologize if it was not addressed before.
But first, let me again say that the fees for ICNX or ICNP have not yet been confirmed, so this is just hypothetical ...
If ICNP would have 20/2 fee structure, then 20% of all REALISED PROFITS would go from ICNP to ICONOMI as fees.
But "realised profits" means that ICNP has to CLOSE its position in that "new coin" first. Only if ICNP liquidates whole $1M investment, then $100k (20% of 500k profit) go as fees to ICONOMI. And this can later be distributed as dividends to ICN token holders.
And since vast majority of ICNP's investments will be done in digital currency, so will be later liquidations... For example ICNP recently invested 5000 ETH in Golem, and I expect when this position will close, ICNP will do sell it for ETH...
Clear?
best,
Jaka
Since dividends won't be paid regularly and not before q1-q2 2017, I guess the real deal are the funds, not ICN in itself.
.
Also why Golem? BOINC does the same and are already well established. Beside Golem are not going to deliver before 2018 (if they ever deliver...) so liquidation/return will not take place in a near future...