Earning Lifetime Revenue From the Coins You Created
Where a BCX primary market participant mnts coins into existence by buying precious metals and then selling them into BCX's secondary market, will be rewarded with a lifetime's stream of free income / revenue as a reward for participation.
The fee income/revenue that you, as a primary market participant will receive, is a fixed portion of the transaction fees associated with all of the specific BullionCoins that they created. These transaction fees are generated in the secondary market and you'll receive a daily update on your earnings in your account and via the BullionCoin app.
The revenue stream associated with the coins you specifically created will continue until they are removed from circulation by an investor redeeming them for the physical backing it.
Your revenue will be affected by:
- The total number of coins you create and sell into the secondary market
- The number of times your specific coins are used in transactions within the secondary market
The more of each of the above, the greater your total revenue will be. If your coins are never redeemed, then you will be earning a yield on your initial (and returned) capital investment forever. You will automatically receive this cash flow for Free into Perpetuity!
Until now, gold & silver bullion are traditionally viewed poorly from the point of being a cash flow producing asset. However, that has changed with the introduction of the BullionCoin Exchange.
Most definitely NOT!
So Where Is the Income Coming From?
Each time someone buys or transacts using BullionCoins, the buyer is charged a fee as a percentage of the value of that transaction. That fee is deducted from the buyer's BullionCoin Wallet on top of the value of his transaction.
The investor that created those specific coins used in the transaction, is entitled to a portion of that fee. The more often your specific coins are used by others, the more fee revenue is generated and credited to your BullionCoin Wallet.
The BullionCoins that make up the fee already existed in the buyer's account. There is no extra creation of coins as part of the payment and so there is no change in the quantity or ratio of vaulted physical bullion to coins in circulation.
Fees in the form of Bullioncoins credited to your account can then be either sold in exchange for cash, used in a trade or redeemed for the physical backing it.
The fee is part of BCX's way of profit sharing and incentivising the continuous creation and use of this digital currency.
Any Risks Involved With This?
Not really, but you only get paid your transaction fee income only on the coins you created and no other. This means that there is a possibility that the people who bought your coins just sit on them and never transact / trade them. Which is unlikely as they will eventually be charged a non-usage fee that is more akin to a demurrage charge..
But you may find yourself in the unfortunate case where others around you are having their specific coins traded 10 times per day and receiving fee revenue 10 times a day and you could be receiving nothing.
Whilst minimal, it's an element of risk that only founding/early investors should really consider due to the lower quantity of coins in circulation or lack of retail investors to turnover the currency enough. As time passes the potential of this happening will all but disappear. The best way to avoid this scenario is to initially sell them in batches into the secondary market over a period of a few days
That way if the next buyer in line, buys coins just to sit on them, then not all of those will be yours and his / her purchases will also include coins that someone else created (hopefully).
So if say you sold 4 batches of 100 gram BullionCoins into the secondary market, then it will decrease the chance that your entire coin supply will be bought by people with low transaction rates. However, due to the built-in anti-Gresham's Law characteristics of this digital currency, it will be rare to happen.
Coins Redeemed Back Into Physical Metal
All BullionCoin holders are allowed to redeem their digital holding back into physical metal. When that happens those redeemed digital coins cease to exist.
If any of those are your coins then the revenue associated from those specific coins stops. Those coins and accompanying revenue are effectively destroyed and permanently removed from the BullionCoin Exchange and monetary system.