setting this new initiative (the burning) to one side just for a moment, is the fundamental proposition of Iconomi actually working well, and is it likely to work well in the future? this new news seems a bit of a distraction from the core offering.
The dividends were part of the core offering, so it is not a distraction to debate its implications. Hopefully the rest of the core offerings remain intact, like the index/hedge fund like tokens, and also the fund management platform.
No.
Profits distribution was the core offering ( as long as they have ICO money to use).
Dividends is just one possible way of that profit distribution
Are you sure about that? Here's quoting from their whitepaper:
"ICN will be an Ethereum-based token of value. Tokens are a digital asset, bearing value by themselves based on their underlying assets, properties and/or rights. ICN tokens represent ownership of the ICONOMI platform, allowing their holders to receive dividends and vote on ICONOMI related issues."
And of course numerous other posts here and on Medium.