Quote from: ccs5t on June 14, 2017, 12:50:10 AM

Quote from: LightSamuel on June 13, 2017, 03:03:21 PM

Quote from: RAGEmond on June 13, 2017, 02:08:06 PM

Yes but my question was: how does TAAS generate profit which they will be able to share during quarterly "profit-sharing" if 1/7 of the capital has been invested in a longterm partnership which will be a HODL. Imo there is no net profit in july so nothing to share?

Hey RAGEmond,

Well, to be clear about the situation; long-term partnerships does not mean that they don't generate capital gains.

In practice, a portfolio reshuffling (not necessary but is an option if some of the positions are really hot and profitable) can happen on the last day of the quarter if needed. At any given point, we understand the FIAT value of ETH that we need to allocate for the payout and may gradually accumulate it OR liquidate some of the positions.

Thank you!

Quote from: anahata on June 13, 2017, 02:14:05 PM

Yeah I have the same question. But I think profit sharing will start from next quarter.

Hi anahata,

You can refer to the answer I provided to RAGEmond.

Also; profits sharing are to start this quarter and the current date is scheduled to be in August.

Thanks!

You know that doesn't make sense and is making me concerned to be an investor in TAAS. There are zero capital gains if a position is held. IE if TAAS invested $1mil into BANCOR they would have to sell that position to have liquid gains to pay investors. So it seems what actually is going to happen is that TAAS is going to look at their paper returns from the 3 ICO investments and then pick an arbitrary number to return to TAAS token holders. That really isn't terrible, but it could go very wrong if the positions reverse ending up with a paper loss. This sort of model could quickly turn into a ponzi scheme...

it depends on if they don't hold any liquid assets to make payouts on their profits from the beginning (i.e. not over-leverage their ETH/BTC holdings). Also, technically TAAS could never be a ponzi scheme, since they wouldn't be taking in any new capital investment. The premise of a ponzi is to pay out dividends to investors from new money that flows into the fund. They could do something similar, but I think the premise of the cryptographic audit they will be providing should allow for transparency and allow for confidence in the funds.