Token Value
Where does the money come from?
Brief
ARENA Security Tokens are a very unique financial instruments designed to deliver massive rewards for a limited period of time, in exchange for the agreement of all Holders to sell back no later than at a specific point in time in the future.
One could call it a next gen "evolution" of formerly popular financial instruments, combining the best of Securities & Bonds with the advantages of cutting edge blockchain technology.
These Security Tokens are key to our plans, as they allows us to combine both a mighty attractive investment opportunity, and a genuine for good long-term mission focused on consumer surplus, that'll provide us with lasting competitive advantages and viral growth.
Asset Value
Where value comes from
Book Value
This includes the full value of Company assets, including everything except for direct Dividends, BBB and Intangible Assets such as intellectual property.
Includes multiple products & revenue streams, as well as any profit from ownership shares in other separate organizations such as the CATs DAO.
All revenue from all sources contributes to growing the size distributions to all allocations in varying proportions, as determined by the proportion of Security Tokens held by each of the three primary distribution allocations, at the moment in time in which distribution happens.
This means both your direct profit as a Holder, and the cumulative collective benefit through platform revenue distributions. And of course, the more the public revenue distributions grow, the more it will become attractive to participate to get a piece, for both existing and new Users, leading to further growth.
Direct Dividends
Are paid out continuously and automatically through our systems to ARENA Security Token Holders' on-platform wallets. You can customize frequency and assets to be received in payouts. Default option is a quarterly payout featuring a mix of currencies among those supported by CryptoArena, but can be customized at will. (for example: everything paid in BTC monthly. Conversion fees apply for customizations.)
BBB
Is a totally unique and novel mechanism meant to appropriately reward investors for the value of their agreement to our unique terms and long-term mission, and the reason why you really want some ARENA Security Tokens. Find out more in the dedicated section.
Fee Discount
A semi-permanent small discount (-0.01%) on all applicable trading fees of Holder accounts.
A marginal benefit mostly meant for differentiation. Discount is lost when you sell your Security Tokens.
Real Securities, Real Rights.
ARENA Tokens are Securities, and as such, bestow their Holders with all standard Shareholder's Rights:
proportional ownership
liquidity
dividends
voting
information
wrongful acts
Right to proportional ownership means that owning 1% of token supply equates to owning 1% of the whole Company including all assets. As such, the price value of the tokens is derived from CryptoArena's book value, including the relative value of any type of property that the Company owns or will own in the future, including buildings, machinery, and more.
Right to transfer ownership refers to the ability to sell your tokens on a market. This might seem mundane, but the liquidity provided by exchanges is in fact a big deal. The speed with which you can convert assets into liquid currency is one of the major advantages of Securities over other investment options such as real estate, which can take months or more in some cases, to be able to be converted into something you can spend.
Right to dividends means that whenever the Company registers a net profit, you have the right to receive your proportional share of it. If you own 1% and the Company makes $ 100, you get $ 1 paid out to your account.
As a Token Holder, you are a part owner of CryptoArena, and as such you also may elect to participate in major company decisions through pro rata democratic voting.
Public Companies are compelled by law to disclose their financial documentation on a periodic basis. CryptoArena will publish a yearly Prospectus containing all performance information and strategic decisions, as well as all Auditing results and documentation, and quarterly financial statements.
Further, CryptoArena believes in the "don't trust, verify!" philosophy of the blockchain world. Chain data correctness and integrity are publicly verifiable 24/7.
The right to sue for wrongful acts means that if the Company or its duly appointed representatives act maliciously or negligently, the Company may be held liable for damages to its investors.
Bonus Rights
Additionally to the above, ARENA Security Tokens will also grant their bearers with:
Right to BuyBack Bonus
This is an added revenue streams meant to compensate investors for the value of their agreement to the terms and processes governing self-decentralization. Meaning this compensation is on top of face value, not in lieu of it.
Incremental basis Rewards
The value of the BBB is shared pro rata only by the proportion of outstanding token holders. CryptoArena Foundation, whom also keeps tokens, has no claim on these funds. This means that whenever a ARENA Holder "exits" and thus claims its BBB, the amount of outstanding tokens decreases, rendering all the ones remaining more valuable, as their claims on all future accruals in the BBB will become proportionally larger. Find more info & examples here.
How much is this BBB worth?
For every 1 $ you make in Dividends, you accrue 0.50 $ in BBB. To start with. Increases over time.
In practical terms, this means shares are worth more than their weight, thus, if you own 4% of total supply, your share will actually earn 6% of net profits, but you won’t be able to access the BBB portion (that extra 2%) unless / until you Exit.
Escalating scarcity & Price support
Even better, the extra weight portion increases permanently whenever another Holder exits.
Tokens repurchased through the BBB mechanism are automatically and permanently allocated to revenue distributions, which also means all future accruals within the fund will belong to a numerically smaller number of tokens, leading to greater and greater shares the more others exit.
ARENA Tokens are designed to reward endurance - those who hodl the longest will benefit most.
Simplifying, it works somewhat like the children’s game “musical chairs” - Whenever a “chair” is taken out of the game (tokens bought back), the remaining others become more valuable.
Also, increases to allocations other than your own individual share, also benefit you, both directly and indirectly. Unsold Tokens contribute to ongoing cash position, as long as they remain unsold.
Basic Examples
1) Justifying the extra weight
Company has 100 shares makes 100€ in net revenue in previous period and distributes it.
There are 50 Holders with equal shares. Bob is one of them
Only ARENA Security Holders claim the buybacks, thus, in this example, there are 50 people with have an equal claim on the 25 € of the BuyBack.
This means that Bob earned € 1.50 in total from his 1% share, rather than € 1.
2) Growth Over Time
Now let's dive into the how the weight of your shares grows over time, while holding the same numerical amount of tokens. ARENA Security Tokens are designed to reward endurance. Those who hodl the longest, get most.
Token Holders may, at any time, decide to sell off their tokens through the BuyBack mechanism, this is an automated process that repurchases Tokens and allocates them to general public revenue distributions.
Setting aside the public distributions themselves, this means that the amount of outstanding tokens with a claim on the funds in the BuyBack decreases over time. There are now 45 people with an equal claim on the 25 € that was accrued by the buyback fund in this hypothetical period:
This means that now Bob earns € 1.55 from holding the same numerical amount of tokens, on all future accruals of funds in the BuyBack. The more others exit, the more this will increase.
Engineered for Hodlers
Our Security Tokens are specifically designed to reward the endurance of investors. The Dividend component allows you to obtain a running passive income to either live on or reinvest, while the BBB's unique rewards accumulate incrementally in secure storage.
Our advise is simple: HODL it until you can.
p.s. founders tokens are locked all the way to the end to demonstrate commitment to our promises.
Last modified 1yr ago