RevenueCoin
I’ve been looking more closely at RevenueCoin today after taking a quick peek a couple of weeks ago. It’s an interesting proposition. The project will back promising early-stage businesses in return for these committing to handing over up to 10% of their revenues each year, which are then used to buy back and burn RVC tokens, which is expected to push up the price.
In theory, I’ve no issue with this business model but there are some questions I’d want answered before committing any funds:
The approach relies on the project team and their advisers making good choices when it comes to the businesses they propose to back (subject to a token holder vote). I know from having been an investor myself for several decades (as well as what the industry stats show) that this is no easy task, even for skilled and experienced people. How well-positioned are they to make these choices?
Some of the businesses that get backed will go under. How might this impact on the value and price of the token, especially if they are an established business making large contributions to the pool each year?
Will these businesses really continue to hand over 10% each year, forever? That’s a heck of a drain on their financial resources.
What happens if one of these businesses is bought out? Does the new owner have to take on the commitment? If not, that’s a potential loss of revenue to the project. Also, who gets the cash from the buyer, does it go to the token pool?
It seems to me that RevenueCoin is, at heart, a fund manager, selecting and supporting companies to back, although there are plans to bring additional use cases to the table for the token. Overall, I’m unsure about this one right now so I’m going to mull it over for a while until I make a decision.
Polkadot Parachain Auctions - Acala
As I mentioned yesterday, things are building rapidly to some sort of crescendo here as the start date for the parachain auctions approaches on Nov 11th. Acala have now issued details of their incentives, rewards and bonus info and I’ve been looking at the different options for taking part in their crowdloan (affiliate link here).
They are one of the projects to offer an option that, whilst seeing your underlying DOT tied up for 96 weeks, provides you with liquidity by issuing a matched token (LCDOT) as well as their own core token (ACA). I need to check out the use cases for the LCDOT but I like this option, because of the ongoing liquidity it provides, so plan to take this route to supporting the project.
Until tomorrow…
Renaissance Man
Why this Diary?
I thought it might be an interesting exercise, as much for myself as anyone else, to keep a diary of my interests and activities in the land of the blockchain and all things crypto, so I’m going to give it a go at writing a short diary entry each day for the current month, November 2021. It will give me something to look back on and assess and it might offer up some entertainment and topics of interest to anyone who happens to read it.
The Usual Disclaimer
Please don’t take any of the above as financial or investment advice. It is intended to be nothing other than a little entertainment and information sharing. Always, but always, do your own research before committing your money to anything.
