ZenSports is a decentralized peer-to-peer sports betting application headquartered in San Francisco, California. In mid-August 2019, the company announced its dividend payout structure for its security token dubbed ‘SPORT’.
ZenSports’ Security Token SPORT Explained
Shortly after the launch of its beta product, ZenSports launched a Security Token Offering (STO) in September 2018.
The offering was available to U.S.-based accredited investors through the SEC’s Regulation D exemption. It was also available to non-U.S. investors through a Regulation S exemption.
ZenSports chose the security token as a viable method to provide investment returns without forcing investors to wait for a formal exit.
Now, the company has just revealed its quarterly dividend payouts which are set to be received by all SPORT security token holders.
To clarify, the company’s ecosystem is comprised of both SPORT security tokens and SPORTS utility tokens.
The structure is as follows:
· All SPORT security token holders (not including ZenSport’s supply) will receive a dividend for each $1 worth of the SPORTS utility tokens in betting volume that transpire within the ZenSports app.
· Dividends will be payable in SPORTS (at a ZenSports internal exchange rate of $1 for every SPORTS), other cryptocurrencies, or a combination of the two.
· The first quarterly dividend will be issued in early October 2019, with the anticipation of continued quarterly payouts.
Mark Thomas, ZenSports Co-Founder and CEO, says,
“As a decentralized platform, cryptocurrencies are at the heart of our philosophy of how we believe the world will eventually manage all securities and streamline utility payment functions. We saw that there could be a better way for private companies to provide returns to investors other than simply having to wait for an IPO or M&A event in 7-10 years. Security tokens offer a streamlined way for doing that. Yes, we also have a traditional stock structure for investors and employees, but the notion of a security token as a means to provide investment returns is near and dear to us, and we believe it’s the future of securities. That’s why we’re super excited for today’s announcement.”
Security tokens have also been implemented in regulated real-world assets to include equity, real estate, investment funds, and even fine art.
What do you think about ZenSports incorporating quarterly dividend payouts to its security token holders? Let us know what you think in the comments section below.
Image courtesy of ZenSports.