Distributing returns to investors.

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  • Thread starter Thread starter saransh
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SUMMARY

The discussion focuses on the complexities of distributing returns to investors in a crowdfunding exercise, particularly when differentiating between early membership stakeholders and non-members. The proposed solution involves a formula that calculates each investor's stake based on their coins owned and money invested, represented as $Total\ Stakes(S_{i}) = \frac{c_{i}}{t} + \frac{m_{i}}{y}$. The platform aims to facilitate funding for developers, allowing startups to create tokens and distribute a fixed percentage of royalties to investors. Clarity is emphasized as essential for effective crowdfunding operations.

PREREQUISITES
  • Understanding of crowdfunding mechanisms and investor returns
  • Familiarity with tokenomics and cryptocurrency terminology
  • Basic knowledge of financial formulas and equity distribution
  • Experience with blockchain technology and its applications
NEXT STEPS
  • Research "Tokenomics in crowdfunding" to understand how tokens can represent equity.
  • Explore "Ethereum smart contracts" for automating return distributions.
  • Learn about "Crowdfunding regulations" to ensure compliance with legal standards.
  • Investigate "Equity crowdfunding models" to compare different approaches to investor returns.
USEFUL FOR

This discussion is beneficial for crowdfunding platform developers, financial analysts involved in equity distribution, and entrepreneurs seeking to understand investor relations in blockchain-based projects.

saransh
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I have a problem let's say where I am organising a crowdfunding exercise I have distributed early membership to people say as some Stakes S. Now there are two groups one who holds membership and non-member.

When one raises fund through crowdfunding exercise one promises a return of fixed 10 % return on the net profit they make or sales they make to all of the investors.

Now I am not able to justify the division of the above 10 % to every individual investor because I have some group of investor who has early membership stakes S where they can demand some extra cut from the return.

how do I differentiate between both of them.

One way of solving this as I see is in the given latex.Let c be the coinsOwned by the user, m be the money invested by the user \ where totalSupply of coins is t, \ y is the totalAmountRaised so far.

$Total\ Stakes$(S$_{i}$) = $\frac{c_{i}}{t}$ + $\ \frac{m_{i}}{y}$ $ $
Above equation yields the total percentage of the stakes S in the crowdFunding where one can use S as.
$Tokens\ ( T_{i}) =\frac{S_{i} \ \times \ y}{100}$

Let y be the amount to be raised in the crowdfunding , let R be the returns every month to the investor.

$R=\ T\ \ $

I am pretty much confused (maybe I can use some weight also to assign to every investor)
 
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I think you have a right to be confused!

"Crowd funding" for what objective? What are you selling? Where do the profits you want to distribute come from? What are these "coins" you refer to?
 
Country Boy said:
I think you have a right to be confused!

Yeah , you think so. After every confusion there needs to have clarity and if confusion arises then clarity is waiting just after confusion.

"Crowd funding" for what objective? What are you selling? Where do the profits you want to distribute come from? What are these "coins" you refer to?

Crowdfunding platform for developers to raise funds.(For development Purposes.) I am not selling anything . People will sell on my platforms. So basically startups will create their tokens and then they would distribute a fixed percent say 10% of Royalty every year per month to investors who has invested in the project.

Coins are basically tokens in the language of ETH.

I hope this answers your questions. Think KickStarter on Blockchain . I hope now we can proceed ahead towards clarity.

Thanks
 

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