Another point - are they saying that as long as there are ICO funds remaining, that fees will INITIALLY be split only among the original 85M ICO tokens bought by non devs, AND ONLY LATER split among all 100M ICN tokens (and thus, the devs) only when ICO funds run out?
$6M of ICO funds for ICONOMI ops will last a long time, but if they leave lots of ICNP profit locked up for long periods of time before cashout, they could possible have a real cash flow problem once they depend only on the OPM fee dividends from 15M ICN for ICONOMI operating expenses.
I would hate to see a need for cash flow become a consideration for when ICONOMI does an ICNP profit cashout....
Indeed. A few things are unclear. I'm sure they will explain in time, though.
Remember 2 million ICN went to bounties though. The split is 87/13, not 85/15, so they have 13M for devs, not 15M.
My post with reply to Mal got messed up, I will try again.
From how I understand it:
Dividends will always be paid to all share holders, menaing to all 100M ICN tokens.
from FAQ:
ICN tokens will receive weekly dividends in the form of ETH from all ICONOMI revenue streams
I am not sure (no big corp-fin expert), isn't it always like that? I mean, if there are only "Series A" stocks, the company has to pay equally to all shareholders.
The ICO deal was 15% "penalty" to all investments, not including early stage bonus (1st week no penalty, 2nd week 5% penalty, 3th week 10% penalty).
As for cash management. Iconomi have ~6M usd to burn on operational cost for now and ~80% of ICNP fund profits. Assuming the ICO funds will be enough for 2 years, and assuming that ICNP fund will be managed adequate or better - I don't see much of a cash flow issue in the near future.
Even for 50% annual profits for ICNP fund, it means 1.8M usd profit back to Iconomi, which should be enough for operational cost (assuming the big legal cost chunk was already paid from ICO money)
