Changes to FYN Reward Structure Draft

Katalyse.io
2 min readMay 29, 2017

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Dear Supporters,

To make our ICO more attractive to investors, we are revamping the investors rewards structure.

The original rewards were 20% of the transactions fees collected, dropping to 5% after year 6.

Under the new scheme, 75% of the profits made from FYN platform will be distributed to investors, via a token buyback program. The tokens bought back will be burned to reduce the overall FYN token supply. This program will be executed every 6 months.

The remaining 25% profits will be re-invested to grow the company.

The reasons for the buyback approach instead of a pure dividend/profit sharing approach is multifold

  1. Buyback approach will allow our token to be more easily listed on major US cypto-currency exchanges. This increases the liquidity of the token and thus investors have an easier time trading it.
  2. The buyback value approach puts FYN in a more favorable position legally. Having a dividend pay out almost guarantees that it will be considered a security according to regulators in most countries, which could mean much heavier government regulation and interference down the road.
  3. Dividends are likely to be subject to taxation depending on where you live in. Buybacks are normally not until you sell your tokens.
  4. Less distribution cost as we eliminate transaction and admin fees from sending profits to many accounts.

This approach is currently being used by other ICOs such as ICONOMI.

Due to the change in the rewards structure, there will also be a increase in the number of tokens issued. We are also increasing the coin tokens held by the founders so there is a stronger vested interest. We are also creating a reserve fund in the event we need to raise more money in the future from more investors. Tokens that are not sold in the initial ICO will be put into this reserve fund.

The token distribution will be as follows:

Coin Total supply: 12.5 million

Crowdsale total: 7.5 million (60%)

Founders and Employees Token Pool: 2.5 million (20%)

Current & Future Advisors, Bounty & Early Supporters: 1.5 Million (12%)

Reserve Fund for Future Fundraise: 1 million (8%)

With this change, we believe investors will be able to gain more benefits from our FYN platform. We look forward to hearing your thoughts on this.

Unlisted

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