A New Chapter for ICONOMI: Transformation of Corporate Governance and Issuance of Equity Tokens
Please note: Due to changes in the ICN exchange process, the information below issubject to change. The last change occurred on November 23, 2018. Please also consider finding updated information regarding eICN in our Help Center and recent blog posts:
- Everything You Need to Know about eICN
- eICN Frequently Asked Questions, Part I
- eICN Frequently Asked Questions, Part II
We are presenting a new structure for ICONOMI that will answer all questions related to ownership and governance.
In the summer of 2016, just two years ago, the blockchain space looked very different than it does today. There was a total legal vacuum, without even a hint as to the direction in which the legal framework might move.
Yet even in such turbulent times, we have witnessed best practices, with non-profit foundations and offshore corporations being the most common options. ICONOMI has also followed that path, but we are now taking an important step toward addressing the issues these setups have brought.
Merging the service operator and the platform
In the process of acquiring a license in the EU to become a fully regulated virtual financial asset service provider, we have grown into a professional organization. With the transformation of our business and the landscape in which we operate, we also need to add clarity to our ownership structure. We also have to acknowledge that our team and compliance are the two most important keys to our success. This is why we are introducing a solution that combines these two aspects under a unified corporate structure: merging the service operator and the platform.
We run ICONOMI with a professional corporate structure, and transparent governance is paramount to our success. We have therefore invested the utmost effort into proposing a revised corporate structure and governance system for the ICONOMI ecosystem with the aim of achieving greater transparency, accountability, and, ultimately, trust for our token holders.
We firmly believe that transparency should be a top-down process, which is why we want to start by enabling our token holders to actively participate in the governance of the ICONOMI platform as its legal owners. Identifying the owners and determining corporate governance procedures with the aim of enabling the ability to influence and participate in decision-making is the stepping stone from which we intend to rewrite the rules to the benefit of our token holders — the future legal owners of ICONOMI.
What will change?
ICN token holders will be able to exchange their ICN tokens for tokenized shares in a joint-stock company presented as eICN tokens. This new structure brings legal clarity for all stakeholders.
To get from words to action, we would like to present our plan:
- Starting on November 1, 2018, eligible ICN token holders can choose either to opt into becoming shareholders of a new joint-stock company that will be tokenized with eICN tokens, or to exchange their ICN tokens for ETH;
- The first phase of the transformation will end on December 31, 2018, with the tokenization process starting in Q1 2019;
- ETH will take the place of the ICN token’s utility on the ICONOMI platform (e.g. fees paid by DAA managers).
With the realization of these steps, ICONOMI is once again leading the industry and preparing itself for the next big trend and opportunity: tokenization of assets. Tokens will transform modern finance, and we predict that security tokens will play a leading role in the coming transformation.
More information about the technical aspects of these changes can be found here.