opinions please what is the better dividend: Pay out in ASSET or pay out in NHZ?

Discussion in 'Assets And Asset Exchange' started by AndreasKae, Sep 11, 2014.

  1. I want to hear your opionions to a question I am pondering:
    what is the better dividend: Pay out in ASSET or pay out in NHZ?

    E.g. this asset USDbitfnx has decided to pay out dividends in the form of more USDbitfnx, translated by market prices: "How will the dividends be paid? Every 11200 blocks or 2 weeks the dividends will be paid. Every asset holder of USDbitfnx will receive his dividends paid in USDbitfnx. Example ..."

    Quite as well one could choose to pay out dividends in the underlying currency.

    Or probably even pay out dividends in the form of a second asset.

    What are your opinions on this?

    I cite from my original post https://www.facebook.com/groups/NxtHorizonCrypto/permalink/771583006239457/ which actually included a technical question (1) which I have already posted into a separate thread: http://forum.nhzcrypto.org/index.php/topic,375.0.html - but here now my question (2):

    Thanks for your attention!
    And: Thanks for NHZ !

    If you want to support me & my work:?
    NHZ-PZTY-4YZN-AW86-B6DVZ? -Thanks​
     
  2. Jerical13 Moderator

    What about the possibility of offering a choice between the two, or a combination of both? The AE functionality gives you a lot of flexibility, and the more options you could provide to your potential share holders, the more your shares would be desired.
     
  3. yes, flexibility seems good at a first glance - but it is also a perhaps unnecessary complication. And most people do not like choice as much, as you might think.

    Eventually, however the dividend is paid, as long as it is convertible, it doesn't matter so much, anyways - so the recipient can always choose to sell his asset dividend for underlying currency - or vice versa.

    And personally, I'd much prefer a semi-automatic system, which can be run with a one-liner, once it is fully set up, and configured.

    The easier the system, the more frequent the dividends could be paid out. The easier the solution, the more people will use it.
     
  4. Pharesim Administrator

    I think I'd prefer NHZ
    Makes it easier for you too, as you don't have to buy assets to pay out dividends.
     
  5. oly

    As a general rule, I would prefer NHZ, but when an asset is climbing, getting paid in the asset is pretty sweet too.

    Ideally I'd like to see the ability for issuers to choose either method of payout.
     
  6. Jerical13 Moderator

    I guess it really depends on certain specifications. If You are looking for the fastest, easiest method to operate, or what your purpose or business model is. the easiest would be in NHZ. You could leave room to change this possibly.
     
  7. Personally, I think HZ payouts makes the most sense. The HZ payouts will always have far more intrinsic value than the paired asset, regardlesss of what asset it is, since HZ can be asset-swapped at any time.

    One profit model that would actually work with an asset-payout is that of an extended loan. EX: raise initial funding, issue shareholders more shares over time as the asset gains value (gains capital, equipment, etc) then determine a time period at the end of which all shares get bought back by the management. Of course for this model, I would make the trade-in HZ value the same as the buy-back, thus. meaning inveator profits will come from newly issued shares.

    A big issue with this buyback model as opposed to something that pays out weekly, is there is far greater risk. For weekly payouts, legitimacy is verified each week; if investors get paid, then that means the asset still has some kind of worth. For a time delayed buyback, you have no guarantees and no views into the futute; anything can happen and make the buyback impossible.
     

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