Quote from: Pacificbit on December 06, 2017, 11:26:00 AM

Hi,

I like your idea but I'm still a little fuzzy about how the profits from the community investment will be returned to the investors.

I understand that you are looking for people who are committed to the community and have developed a Karma System which will provide value added opportunities.

For the token itself, my understanding is as follows. Please let me know if this is correct.

By way of example, I invest one Ether and receive 500 BullTokens in the pre-sale. Let's assume the community invests my one Ether and earns 10 Ether. How is that investment returned back to me? My understanding is that your advisory board will petition the community to learn how to best distribute that 10 Ether. Some of it will be used to buy back BullTokens and "burn" them, or permanently remove them from circulation. As a result, the supply of BullTokens will become more limited and the market value will increase. In that way my BullToken value will reflect profits received from the diversified investment in community chosen ICOs and altcoins. It's not a direct return, but an indirect return by limiting the supply of BullTokens.

I hope I understand this correctly. I'm also wondering if this is a long-term sustainable practice.

Thank you for your help.

Hi Pacificbit!

Thanks for the question! You're definitely on the right track. So instead of using your example as a single investor, I'm gonna use the whole community so it's easier to understand in relation to how things are going to function. But I will say that you are understanding the gist of it.
So your question is "How will the profits from the community investments be returned to the investors?". For legal reasons, we need to be very careful about how we explain things, but as a "hypothetical example", do you understand the basics of an ETF fund? This is not much different, but at the same time it is very different, because we are officially NOT an ETF fund Wink

The BullToken token represents each members share of all assets we as a community invest in. Since we dont pay out dividends, an owner can sell BullTokens on major exchanges, as its exchange value goes up and down, if they so desire. As the value of our Community Investments increases, the value of BullToken will also increase.

As far as the BullToken buy/burn strategy, it's only a mechanism to ensure its liquidity on exchanges. This is something we may never need, but its in place and ready to be voted on by the community if needed.

And then there are a couple of other investment strategies to mention here as a supplement to what's already been stated by you and myself.

In order to distribute risk, we have 2 main investment strategies. The first investment strategy states that we will invest a maximum of 1% of our total Assets Under Management (AUM) in new blockchain projects, and not hold more than 5% in any one investment. Whenever an underlying asset increases to more than 5%, BullToken will partially sell itself down to 5%, and repurpose 80% of those gains into investing in new projects. The second strategy is also investing in established cryptocurrency assets. Our current guidelines state that a maximum of 20% of the total BullToken Investment Portfolio can be established cryptocurrency assets.

The last important strategy to mention is flexibility. Every day is an exciting day in the world of cryptocurrencies, but nobody really knows what will happen tomorrow. In order to be able to adapt to this fast moving industry, BullToken has set guidelines, not set-in-stone rules, and is willing to adapt by including our community in future strategy planning. Although this wasnt part of your question, this is a very important reason for why BullToken is not a 100% blockchain project, but a hybrid. All transactions that need to be stored on the blockchain will be there for all to see.

As far as we can see, as long as there are innovative projects to invest in, then this is definitely a long-term sustainable practice

I hope I've answered your question well enough. Anything else you'd like to discuss, we welcome it with open arms!

Will I be seeing you on the Community Platform? I hope so!

Best Regards,
Louie