Quote from: RuhannS on December 01, 2017, 01:26:52 PM

Quote from: envion on December 01, 2017, 07:47:29 AM

Quote from: mrelich on December 01, 2017, 12:29:18 AM

Hi team, good news that the project has attracted some large investors. But please explain one thing to me, a potential small investor - I thought that the only way you plan to collect the money to start the project is via ICO, and that you are planning to distribute 100% of the profit to token holders. However, if you get other large investments outside the ICO, how would you distribute the profits then? Then it wouldn't be 100% of profits to token holders, as the large investors outside the ICO would also want their part of profit? Please explain.

Hi there.

The ICO is essential to the success of envion, but the envion machine has more moving parts to it. Envion distributes 100% of profits from Proprietary Operations (PO)where envion owns and operates Mobile Mining Unitswith our token holders.

If that were the only line of business, there would be no money to run the company.

The other part of the business is Third-Party Operations (TPO)where a customer purchases MMUs and envion operates and maintains the mining units. Envion distributes 35% of profits from TPO mining operations. This has always been where envion's operating revenue comes from.

There are some important things to note about the difference between these two revenue streams:

First, the growth rate for PO is more or less fixed because there is a one-time investment, the ICO, and a 25% reinvestment policy that written into the smart contract. Once the production run of PO MMUs financed by the ICO are deployed, growth will be steady at 25% forever.

Second, the growth rate for TPO is not fixed. The more customers that want to purchase MMUs, the greater the growth of profits for envion AND for token holders who earn 35% of the TPO mining operations revenue. This growth rate is infinite and PO is isolated from it. That means if it grows, token holders earn more money. If it shrinks, PO will never be threatenedthey are two separate business arms and, as indicated in the whitepaper, a separate business entitya subsidiary of envion AGwill even be created to manage PO.

Lastly and most importantly, these are not two competing business divisions. The PO MMUs will be the first to roll of the production line and the first to be deployed and installed. The TPO units will only help to further corner the market and assure that envion gets the best deals, continues to innovate our product, and becomes and indispensable service provider to blockchain-dependent industries.

So this is a positive development for token holders. More investment in the company means a healthier envion and a larger TPO operation which will increase dividends. That was always part of the plan and now it's just happening faster than we could have imagined.

Tl:dr Token holders profit's are fixed for PO. TPO growth is unlimited and token holders get 35% of TPO mining operationsthat's the part that will scale much faster via these new deals. There is no competition between the two.

Thanx for this answer Envion. We were discussing this very exact issue yesterday and wanted to post/ask it - but now we have the answer.

I do have one other question if you don't mind answering: As we have more MMUs running, the difficulty level of mining will probably increase. If we sell more MMUs to third parties, the mining difficulty will increase more and more. Is there some "sweet spot" where you will level off with the selling and production of more MMUs in order for your existing MMUs to remain effective and profitable? I know its difficult to answer as we know difficulty will increase anyway - whether Envion is there or not, but obviously we don't want to hang ourself with our own rope.
If this questions has already been asked, I apologise for the repetition, just show me the link and I will read the answer there.
Thanx

Hi. I think the issue is less of a sweet spot in terms of planning for difficulty than the eventual growth in other blockchain infrastructure needs. As mining becomes less profitable, other uses for our computational infrastructure will be more cost effective. Whatever service the PO MMU's provide will bring profits to token holders. Billions of dollars are being invested into blockchain technologies and they will all need reliable, enterprise-grade hardware infrastructure.

However, that's still far in the future. We have already calculated difficulty into our model and you can see the Mining Excellence section of the whitepaper for more details. Since we are capable of mining many different coins, we can also just mine what is profitable with the equipment we have. All of these decisions are made dynamically based on the config of an individual unit and current market data.