Change over Time
CryptoArena distributes incremental proportions of revenue over time, all the way to 100%
Fixed Governance & Allocations
As previously explained, CryptoArena is a hybrid legal entity, and Self-Decentralization is the automated process by which CryptoArena distributes incremental proportions of its platform-generated revenue back to the Users. This is achieved by moving portions of the outstanding supply, into the possession of CryptoArena Foundation, an entity that can't keep revenue, and must redistribute it to Users instead.
The Role of Security Tokens
The Security Tokens are at the same time:
the ownership shares of CryptoArena (which include pro rata claims on profits & assets)
the "beacon" that indicates to our distribution blockchain where and how much to send
the enforcers of the terms that guarantee the outcome of the process
The Beginning
Will begin concurrently with Launch of our main platform.
Things to be noticed
1. BV / Stichting
CryptoArena BV is the Holding Entity representing the collective of Holders of our security tokens.
CryptoArena Stichting is an operating non-profit entity with predetermined, fixed governance: Its purpose is to operate the business "as a business", but it also must redistribute all net revenue it generates to the platform's Users, through the glory system.
By predetermined and fixed, we mean that the rules and processes ensuring this are enforced both legally and practically through the use of smart contracts.
2. CryptoArena's ownership is split in half between 2 entities from day 1.
This serves the specific purpose of guaranteeing the delivery of our mission. The Stichting can't sell shares/tokens, or mint any, thus it is impossible to form a consensus large enough to have the authority to change the fixed terms. Once deployed, the self-decentralization process can't be stopped.
3. The Allocations
Of tokens represented in these charts determines the percentage of net revenue from all sources, that is directly allocated to each fund, from each primary distribution.
The End
Self-Decentralization is achieved when Green has finished taking over the rest.
How Change Happens
Visualizing it helps a lot - Check out this crappy little video
The BBB is the Pivot
That causes change to happen progressively.
Whenever a Holder triggers this mechanism by "exiting", tokens are transferred from outstanding circulating supply, to the non-profit Stichting, whom in turn, automatically allocates them to increasing the weight of Revenue Sharing.
Holders can only claim their share of the BBB fund upon “Exit”, and is on top of the actual face value at the time of sale. "Exit" refers to special transaction that happens by clicking a dedicated button in the UI.
This will execute a market order, by which the Holder sells his/her ARENA Security Tokens to CryptoArena Foundation at the current market price. When this transaction is confirmed, automatically, you also "unlock" your share.
Holders may, alternatively, also sell their Tokens to other qualifying Users through a dedicated OTC market, however, in such case, the claim on the BBB does not trigger, and transfers to the new Holder – thus, if you do intend to, you’d better ask for a premium !
Last updated
Was this helpful?