Safex Dividend Calculator — Why, What and How?

Ivana Tudor
Sep 25, 2017 · 4 min read

The Safex software is introducing crypto currencies to eCommerce using a blockchain as the basis of securing transactions and crypto currency wealth. The rationale is that traditional websites expose people and the security of their digital holdings. On the contrary, Safex is bringing eCommerce marketplace free from obstructions.

One of the main value propositions of the Safex platform are the Safex coins and the dividend yields that stem from the usage of the marketplace that it constructs. In this article I will go into the variables of the Safex Dividend Calculator and explain a scenario that projects the outcome of holding 100,000 Safex coins at today’s prices.

The walkthrough is broken down into two parts. The first part is related to the Dividend Yield of the whole marketplace, and the second is related to an individual holding of Safex coins and what their $ amount yield is projected to be for one year.

Part 1. Marketplace Total Dividend Yield

  1. Estimated Trade Volume ($) represents value of all goods and services sold in one year. Based on comprehensive market research we estimated $500 million sale in 2018.
  2. Marketplace Fee (%) are fees that marketplace charges on each product sale.
  3. Safex Market Cap $ is the current value in dollars of all circulating Safex coins (2,147,483,647).
  4. Projected Safex Dividend Yield (%) is the return on investment as a percentage. That number shows how much the whole marketplace will earn in 2018 if the trade volume is $500 million and today’s price of Safex.

For calculating the Safex dividend yield we are using this formula:

Safex dividend yield = estimated trade volume * marketplace fee / safex market cap

Part 2. 100,000 Safex Coin Holding Scenario

  1. Your Safex Holdings (SAFEX) — In this field you should write how many coins do you have right now or project yourself to have. We put 100,000 coins to show you how it works.
  2. Value of Safex Holdings ($) calculates a value of all your Safex holdings in today’s price. In our example, 100,000 safex coins are worth 1001.07 US dollars.
  3. Projected Value of Annual Yield $ represents how much you will earn in 2018 in dollars. If you have 100,000 Safex coins and if all predictions from Part 1 come into being, you will earn an additional 1,164.144 US dollars in returns for the 2018 year.

Elaboration of projections discussed above

I suppose that some of you are wondering how we get all those numbers and I would not be surprised that some individuals are finding our estimations a little bit optimistic. So, read on! Some of the explanations and results of our research are given below.

First of all, Safex marketplace is targeting the retail e-commerce industry worldwide which is a really huge addressable market. In 2018, when we plan to launch our marketplace, total e-commerce transactions will exceed $2.2 trillion. Taking this into account our resources and comparative advantages, but also marketshare and trade of our direct competitors, we believe that $500 million of volume is a realistic goal, thus feasible. Depending on the growth of cryptocurrencies (awareness and usage), industry growth rate, effectiveness of our marketing strategy and other factors we are setting out target to 1% of marketshare in medium term.

Average fees on the marketplace will probably be about 5 percent of final price. That is much lower than the total fees charged on the biggest e-commerce marketplaces, our competitors. Amazon is charging more than a 15% on average, but fees can reach 45%; Ebay is charging 10 percent flat rate plus product listing plus transaction fees through PayPal; UpWork fees can go up to 20% only to freelancers, but hiring clients are paying, too. That’s why it’s not surprising that big merchants are contacting us on a daily basis to find out when are we going to release the marketplace. We have buyers and sellers “waiting in a line“ to start trading with lower transaction costs and with the global reach of crypto currencies.

Safex, a different kind of company

Unlike the traditional company model where a single person gains the outcome of a business. Safex is like a public utility and the public holders of the Safex coin earn the outcome of the marketplace. All people involved are each sharing the yields of the development.

The Safex development model solves a major problem known as the Principal-Agent Problem and the Safex enterprise that is directly a member of the community has the same interest as each holder of the Safex coin and the marketplace’s success. So, Safex team has strong incentive to execute and bring this project to life as soon as possible. Marketplace release is expected to be in second quarter of 2018th.

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