How Karma is Going to Build a Company? Shareholder Relations After the Swap: 1 Year Perspective

Karma Project
KarmaRed
Published in
3 min readMar 18, 2020

The swap and the whole campaign is a complicated process no matter the form.

However, the whole point of our campaign lies in restoring the balance of interests and helping our Investors become full-fledged beneficiaries of the company. And in this regard, it is highly important to build both a compliant and convenient company-shareholders model.

In this article, we would like to give you a sneak peek at how our communication will be structured after the campaign.

Forget the ICO Era

After the swap, you will become full-fledged beneficiaries of the company, while we will be able to build a compliant “company-shareholder” relationship model.

All shareholders will be provided with a wide range of corporate rights: profit-sharing rights which include dividend payments and capital gain, voting rights and much more.

The same goes for our obligations, as they transform and become precise and understandable while the regulatory risks associated with utility tokens are eliminated.

Let’s compare how two types of assets differ for investors.

Technology

Communication with over 800 investors located all over the world is never an easy task. To build a fully compliant company-shareholder model, we needed to have compliant communication tools. With that in mind, we have to revert to our service provider — Tokenomica once more.

One of the significant reasons why we have opted to go with their solution — development of proper post-campaign management tools.

As Tokenomica aims is to help modern companies eliminate excessive paperwork and automate back office, the platform allows us to create the code for the execution of our plans and also automatically creates the necessary legal documents that will legitimize the established restrictions, as well as the execution of token holders’ decisions.

Basically, we will conduct shareholders voting, manage dividend payments, prepare corporate documentation, publish P&L statements, annual reports, news and updates directly from our account to your companies dedicated webpage on the platform.

Let’s take a quick look at most of the aforementioned features.

Voting

In the traditional system, shareholders’ voting process is conducted once or twice a year. The reason for it is that voting has to be conducted at a certain time and place. While in the digital era, each shareholder can take part in a voting process from anywhere.

In the future, we will customize which actions require the participation of shareholders and conduct as many votes as needed. These decisions can be:

  • Dividends payout;
  • Approvement of an annual report;
  • Contract a vendor to get his/her service (in specific cases).

Before the voting, you will receive an email notification indicating the new voting and instruction on how you can participate in it.

The results of these actions will be automatically reflected in the legal documents. Shareholders, on the other hand, can play a bigger role in the work of the company, along with that you will be provided with tools that give them protection from fraudulent activities.

Dividend Payouts

Dividend payouts first will be sent out manually.

In the future, in case of a steady income, payouts might be completely automated and can be previously set in the code of the smart contract. Again, all actions are automatically reflected in legal documents, saving your time.

And mostly, that’s it! We are looking to increase your role in our business and would like to see more than 800 satisfied shareholders in one year.

Cheers ˆ_ˆ

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