Republic to Launch Profit-Sharing Digital Token on Avalanche Blockchain
Summary:
Republic, an investment and technology firm, plans to launch a profit-sharing digital token, the Republic Note, on the Avalanche blockchain. The token allows retail investors to share in profits from Republic's diverse investment portfolio. The firm has completed a presale round, raising over $30 million. Dividends from the Republic Note will be paid out in USD Coin (USDC) when the dividend pool reaches a $2 million threshold. The Republic Note is due to be listed on selected securities exchanges in the coming months.
Republic, a pioneering firm in investment and technology, has announced its intention to release a profit-sharing digital token, running on the Avalanche blockchain. This blockchain-based security token, known as the Republic Note, will allow retail investors to benefit from profits made on its extensive range of investments. Republic boasts of a vast audience of over three million investors and has invested over $2.6 billion in a variety of ventures such as Avalanche, DappRadar, and Dapper Labs, among others.
Before the official release of the Republic Note, the company has already completed a presale period that raised over $30 million from both individual and institutional participants. The dividends from these assets will be paid out in USD Coin (USDC) to retail investors, once the dividend pool reaches the $2 million mark.
In addition, Republic has developed a proprietary self-custodial wallet, compatible across all chains, that will facilitate the distribution of dividends to holders of the Republic Note. Unlike cryptocurrency tokens, the Republic Note is not tradeable and is anticipated to be listed on selected securities exchanges within the next two to three months.
Republic's decision to use the Avalanche platform for its blockchain is influenced largely by the company's goal to engage and scale a large base of Web3 savvy investors. Andrew Durgee, the President of Republic, stressed the selection of Avalanche as being much more than its scalability and speed, but also due to the strong pre-existing partnership with Ava Labs.
Incorporation of the Republic Note has been in progress since 2016 when the first white paper was published. Since then, the digital securities offer has been vetted by Quantstamp. The upcoming digital security's website states that a single Republic Note will cost $0.36. Upon its launching, between 330 to 350 million Republic Notes will be brought into circulation, with the total supply capped at 800 million.
As reported by Cointelegraph, there have been similar moves by other players in the crypto industry to offer tokenized securities to potential investors. For instance, blockchain technology firm Blockstream announced the launch of Blockstream ASIC Note in August 2023. This initiative offers exposure to digital securities paid for in Bitcoin (BTC) used to purchase ASIC mining hardware on a large scale. As demand for ASIC miners rises into 2024, Blockstream's plan involves storing and reselling the hardware back to the market.
Published At
11/17/2023 4:00:00 PM
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