New investment and technology company Republic plans to issue a blockchain-based security token that will pay dividends to retail investors from profits from its broad portfolio.
Republic Note is a profit-sharing digital asset that will be launched on the Avalanche blockchain and generates profits from Republic’s extensive portfolio and services. Republic has attracted more than 3 million investors and invested more than $2.6 billion in various businesses, including Web3 companies Avalanche, DappRadar and Dapper Labs.
Republic has conducted a pre-sale round for Republic Note, attracting more than $30 million from individual and institutional investors. Dividends from the notes will be paid out to retail investors in U.S. Dollar Coin (USDC) when the dividend pool reaches the $2 million threshold.
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Republic has also developed a proprietary Web3 self-hosted cross-chain wallet for dividend distribution to Republic Note holders. The notes will not become a tradable digital asset like other cryptocurrency tokens and will be listed on selected stock exchanges within the next two to three months.
Republic President Andrew Durgee emphasized that the choice of Avalanche as its blockchain platform was mainly due to the company’s desire to reach and expand a broad audience of Web3 native investors:
“The selection of Avalanche goes well beyond the strength, scale and speed of the network and solidifies our long-standing relationship with Ava Labs, which is built on a shared vision of more inclusive financial markets.”
Republic Note has been a work in progress since the first white paper was released in 2016 publish. Quantstamp has since conducted an audit of digital securities offerings.
The upcoming digitally secure website lists the price of a single Republic note at $0.36. At the time of issuance, there will be between 330 million and 350 million Republic banknotes in circulation, with the total supply of Republic banknotes capped at 800 million.
As Cointelegraph recently reported, other cryptocurrency ecosystem players have also launched tokenized securities products to potential investors.
Blockchain technology company Blockstream announced the launch of Blockstream ASIC Note in August 2023, which allows investors to obtain digital securities paid in Bitcoin (BTC), which will be used to purchase ASIC mining hardware on a large scale.
As demand for ASIC mining machines picks up in 2024, Blockstream plans to stockpile the hardware and sell it back to the market.
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