Sunny
Hello,
I’m a novice and would like to better understand some of the specifics around a potential “new issuer offering”.

This is a game changing development in finance & the financial markets! However, I’m clearly missing some element around “Company” (Asset) Valuation & how the Issuer is actually directly funded through the issuance (if at all). Please advise.

The issuer creates the asset at a fixed rate of 500 RVN Coins (a rate which will never change). Including (but not limited to):
- “Company” (Asset) Name
- # of “Shares” (Tokens)
- Fractional Share Ability (Decimal Points)
- Option to Issue New “Shares” in the Future (Dilution of Existing Assests - assuming identical asset classification)

Questions.

1. How is the Total “Company” (Asset) Valution met? (Let’s use $100 as the pre-determined value). Or is there no pre-determined valuation? The shareholders will simply have a proportional claim based on the “shares outstanding”?

2. Are prospective parties (who I assume are solicited through any number of potential marketing tools) simply made aware of a Unique “Company” (Asset) Name from which the issuer will send “Shares” (Tokens) directly to parties indicating interest?

3. If so, how does the Issuer track interested parties?

4. Is there an even distribution of “Shares” or is there an initial “Cap” which can be set? (Also, I assume the Issuer has complete control on how many “Shares” are Issued and when. Is that correct?)

5. Is the funding simultaneous with the issuance of “shares”? (Is the funding completed in RVN Coins) If not, how/when is the issuer actually funded?

6. How is the performance of the business tied to the “Shares” issued (other than through intentional dividend payments initiated by the issuer)

7. If the issuer is funded with RVN (or any other digital currency), I assume the issuer will then be subject to market volatility of the respective currency. Is this correct?

8. How do share holders trade among one another?

9. Is the price of the “Company” shares traded based on supply & demand? Or is the price fixed? 

10. What role does the fluctuating price of RVN Coin play AFTER “Company” Shares are issued?

Thank You.
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nonprofitbanks

Hey Sunny,  

 

Welcome to the obsession!  I've been a miner of raven since the beginning and an avid student of the crypto space for a few years now, but i have never been active on any forums, just loidered. Lol  I want to thank you for my post, as its provoked me to get involved.

 

I owe Andreas Antonopolous a sincere intellectual debt. He got me interested in how this all came about and sent me down a wormhole of learning how to program, consuming more information on economics than i ever imagined i would, and blessed me a whole different perspective. I wanted you to know where i'm coming, and to say that i certainly don't know everything, i encourage anyone reading this to challenge my answers and teach me something i don't know!

 

Your questions are all excellent, you've clearly put some thought into it, but i think your putting the cart before horse….Answering and executing on these questions with a purpose in mind  regarding the objective of the “Company” (Asset) Name would be my recommendation.  Why? Well, more than anything: liability.

 

There's a lot of talk about regulation, and needing clarity; Asset creation, is the exact moment where it matters. Under current US Regulating bodies, Bitcoin can be considered a currency, a security, and a commodity depending on how its used.  Medium article

 

Ravencoin deploys the elegance and security of the bitcoin network, and made some enhancements, one of which is the topic of the day: Asset creation.  

 

How you create an asset, how its funded, and what's its purpose is can all change WHAT type of Asset your “Company” () Name is. I'm going to pull a few examples of  the types of assets you can make with ravencoin direct from their website, but the thing to remember, these are all considered different in the eyes of regulators, and you need to be in compliance specific to your use case



 

Quote:

“Project Shares”

Representing real world custodied physical or digital asset

  • Securities tokens: stock or shares of a company where the shares are represented by a token rather than a physical stock certificate
  • Securities or partnership interests with the built-in ability to pay dividends in RVN
  • Tokens which represent a coop, limited partnership, royalty sharing or profit sharing platform
  • A token which represents a cflexd-funded item with the ability to transfer or resell the item


 

Quote:

“Virtual Goods”

Representing virtual goods

  • Tickets to an event such as a Baltimore Ravens game with the ability to resell without worry of duplicates being made
  • A license to allow an activity
  • An access token to use a service
  • In-game currency and items, transferable to other gamers outside of the game platform


 

Quote:

“Physical and Digital Assets”

Representing a share of a project

  • Gold bar
  • Silver coins
  • Physical Euros
  • Land Deeds
  • DC Comics Presents #26
  • Energy credits (Electricity, Wood, Gas, Oil, Wind)


 

Quote:

“Credit”

Representing a credit

  • Gift cards
  • Airline miles
  • Reward points

 

Now to your questions…...

 

  1. How is the Total “Company” (Asset) Valution met? (Let’s use $100 as the pre-determined value). Or is there no pre-determined valuation? The shareholders will simply have a proportional claim based on the “shares outstanding”?

Total market Cap = circulating supply X price per coin

  1. Are prospective parties (who I assume are solicited through any number of potential marketing tools) simply made aware of a Unique “Company” (Asset) Name from which the issuer will send “Shares” (Tokens) directly to parties indicating interest?

This growth strategy would be an ICO, and is an option.  You will need to be in compliance with the SEC for a security offering, requiring a 3rd party custodian, meaning your no longer decentralized IMO. So you have to answer the question for yourself, how important is decentralization to me, and my team, when making these decisions.

I think the whole point is decentralization. And it's why i mine ravencoin, im participating in what i believe will be the most secure blockchain network.  There's a long way to go before that happens, but the bitcoin codebase and with ravens asic resistance model and the willingness of Tron black to change the algorithms if an asic is developed is a dedication to decentralization that i appreciate.

Level of decentralization is up to you, but do a deep dive into the tradeoffs of various models.  

  1. If so, how does the Issuer track interested parties?

If doing an ICO you would have to do KYC/AML to stay in compliance, which will allow you to track investors.  

Ravencoin wallet activity is trackable.  Along with most public blockchains.

  1. Is there an even distribution of “Shares” or is there an initial “Cap” which can be set? (Also, I assume the Issuer has complete control on how many “Shares” are Issued and when. Is that correct?)

Yes how many shares and what wallet addresses they go into it's up to your discretion. Just like the amount of shares and distribution available for a IPO

  1. Is the funding simultaneous with the issuance of “shares”? (Is the funding completed in RVN Coins) If not, how/when is the issuer actually funded?

If doing an ICO, you will set a date for the end of your sale.  Typically how its done is the shares are distributed when the issuer collects their funding at the end of the sale.  

Bitcoin and ravencoin have value because people believed it has value, just like any central bank backed fiat currency

  1. How is the performance of the business tied to the “Shares” issued (other than through intentional dividend payments initiated by the issuer)

How to value cryptocurrencies is a huge challenge for institutional investors, its why warren buffet hates it for example.  It's the network effect, how valuable is a network? Well depends on how many users there are and what value it brings.

  1. If the issuer is funded with RVN (or any other digital currency), I assume the issuer will then be subject to market volatility of the respective currency. Is this correct?

Yes. you could require shares to be purchased with a stable coin to avoid the volatility

  1. How do share holders trade among one another?

This is the critical component of community.  A strong community, like raven, will get you listed on exchanges, opening you up to customers who didn't know you existed.  If you raise enough money in an ico you can pay to be listed on exchanges

  1. Is the price of the “Company” shares traded based on supply & demand? Or is the price fixed?

We are all subject to the laws of supply and demand.  Fixed price crypto currencies are called stable coins and typically back their circulating shares with a physical currency or asset such as gold.  

  1. What role does the fluctuating price of RVN Coin play AFTER “Company” Shares are issued?

Depends on how well managed the network is. So when the difficulty to mine raven gets really high from a price increase, i'll do maintenance on my rig.  When the difficulty drops (price comes back to earth) i turn it back on because there are fewer miners. The problem would arise if people turned off their miners when the price drops and no one is verifying transactions.  A blockchain only needs two nodes to survive if its properly decentralized.

That's the end of my novel, I hope it helped.  It was beneficial for my own understanding to respond. Thanks again for that.  

Be Well

nonProfitBanks



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Sunny
THANK YOU VERY MUCH nonprofitBanks!!!!!

This was a WONDERFUL WELCOME to this community!

Your response was incredible - the type which restores faith in man/woman-kind! 

You showed

- understanding for my status as a newcomer to this industry

- thoughtfulness in expounding on the underlying intentions of RVNs creators & its community

- careful attention to answering the question asked

- passion and appreciation for your inductance & progression within the industry and for the potential of this one-of-a-kind undertaking, RVN Coin

You responses will certainly help to close the gaps between my backgrounds in Computer Engineering (as a Network Engineer) and Investment Banking (Diversified Industries) en route to growing more knowlagable within this RVN Community - hopefully to the point of realizing the potential of RVN through my future endeavors!

Sincerest Thanks!

Sunny
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