Quote from: mvillar on December 20, 2017, 07:05:36 PM

Quote from: ypsi on December 20, 2017, 10:51:50 AM

Quote from: mvillar on December 20, 2017, 10:28:25 AM

As an investor I like this BUT this won't pass the Howey test so it will make this token to be out of the major exchanges forever. I'm fine with that, what I'm not fine with is with companies changing everything after ICO to try to comply with the rules to be listed in exchanges (TrueFlip I'm looking at you).

TLDR: Dividends means this token will be stuck in etherdelta forever. I'm fine with that.

Can you please elaborate on the "Howey test"? From reading the dev comments in this thread it is implied that it will be featured in "normal" exchanges as well as the usual ED token exchange.

--ypsi

Quote from: ganeshramk on December 20, 2017, 01:45:39 PM

Quote from: mvillar on December 20, 2017, 10:28:25 AM

Quote from: cryptossi on December 20, 2017, 09:36:09 AM

Quote from: ganeshramk on December 20, 2017, 09:15:14 AM

Quote from: faulerwilli on December 20, 2017, 09:06:30 AM

Just read something in the whitepaper, a lot of information, especially technical information where I would rather wait for a translation.
But what I noticed is this:

At the end of every SOLIDUS period and every
financial year is a percentage of the company's profit
transferred to ETH wallet. The ETH is then
redistributed to all token holders according to the
percentage of PCL Tokens owned.

Another incentive to invest, I like this

This is a very nice initiative. Eventhough Peculium is not the first one to do that. If I were Peculium, I would have initiated litecoin or bitcoincash or dash as rewarding currency than ETH. It has become too much for ETH now. ETH cannot handle the load and is visible clearly. When possible, projects should go out of ETH and look for more stable options.

I really like that part of the white paper, its good for investors to know what that there is a potential dividend pay out/profit sharing initiative which is paid in ETH. It will make more people want to invest in the project and its a really exciting concept.

As an investor I like this BUT this won't pass the Howey test so it will make this token to be out of the major exchanges forever. I'm fine with that, what I'm not fine with is with companies changing everything after ICO to try to comply with the rules to be listed in exchanges (TrueFlip I'm looking at you).

TLDR: Dividends means this token will be stuck in etherdelta forever. I'm fine with that.

I am not sure what exactly means with HOWEY test. could you please explain it further? Why only ED supports such dividends and not other exchanges? It would be nice to understand this further.

The "Howey Test" is a test created by the US Supreme Court for determining whether certain transactions qualify as "investment contracts." If so, then under the Securities Act of 1933 and the Securities Exchange Act of 1934, those transactions are considered securities and therefore subject to certain disclosure and registration requirements.

Under the Howey Test, a transaction is an investment contract if:

It is an investment of money
There is an expectation of profits from the investment
The investment of money is in a common enterprise
Any profit comes from the efforts of a promoter or third party

Although the Howey Test uses the term "money," later cases have expanded this to include investments of assets other than money. The term "common enterprise" isn't precisely defined, and courts have used different interpretations. Most federal courts define a common enterprise as one that is horizontal, meaning that investors pool their money or assets together to invest in a project. However, other courts use different definitions.

The final factor of the Howey Test concerns whether any profit that comes from the investment is largely or wholly outside of the investor's control. If so, then the investment might be a security. If, however, the investor's own actions largely dictate whether an investment will be profitable, then that investment is probably not a security.

All the major exchanges are avoiding any token that might be a security like the plague.

For further reading https://blog.coinbase.com/2016-12-07-blockchain-token-securities-law-a66ef03c383f and https://www.manhattanstreetcapital.com/faq/for-fundraisers/how-determine-if-token-security-howey-test

In my eyes, the Howey Test is a tool for the US tax authority to declare any business U.S tax liable. It is a joke what the US has admitted to the financial market for rights. I hope that projects based on ETH such as Peculium never come under this regimentation, the anonymity in the crypto world is an important building block there.