Statement to Zappl dex coin holders
This share sale is not to be confused with Dex coins, the Dex coins that are currently being held are considered a loan. So they do not pay out dividends and are not considered shares in the company. Zappl will continue with the plan we laid out for the Dex coins and gradually the buy back will still go forward.
How the definition came to be a loan, when seeking legal council we gave the post for our links and how it was set up. We origanally thought this was more of an iou token but turns out its not.
Dex coins agreement:
49% of the earnings from the site would be used to gradually buy back the token.
Gradual Buy back would occur with in the the first 3-4 month from sites profits.
Perks would be included for those holding them till 7 days after the launch.
Buy backs would occur every 3 months or sooner depending on the profits.
What was not said at any point:
That these dex coins permanent.
That these dex coins would pay out dividends.
That these dex coins proved ownership in the company its self.
We do plan to do right by the people who helped with the creation of the site. Some people are claiming things that were never said and i think we worded some things in a way that could have confused people. But there is a difference in what we have said and have been saying in our videos, live streams, interviews and chat we have hours a day with holders.
Shares were meant as we would pay back with at least 49% sites profits would be used to buy those tokens back. Some people understood that and from what i seems some people didn't, which is in part our fault as well.
We felt it was best to clarify this. We have been explaining since the launch of these tokens they would be bought back.But on a side note there is a chance of a share drop which were currently figuring out the legal side of things. We think when we go public C corp company we should be able to do a share trade for the Dex coins that are being held. Currently under review we will provide future updates on this topic.
Please feel free to ask any questions, we have since we started have been very open about the project and have been very open about the going on with zappl Inc. So if you would every like to chat with us please come and chat with us on discord we would love to talk to everyone in the community and hear ideas.
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ZAPPL was issued at 2 USD, what price will you be buying back ?
It was issued between 1 bitusd and 1sbd that was at 1.80 per coin at most i believe. And at reasonable mark up and prob market price or around market price.
I believe bitusd no one has sold for a while for less then 4 bitusd.
so you consider it a free loan without time gap ?
Thank you for this post @thedegensloth please could you clarify something, if the buybacks are not permanent, when will they stop?
What will happen to ZAPPL that is not bought back?
At the beginning of the post you mention 40% of site earnings and then further down it is 49%, could you clarify which it is? (It would be very helpful to get these details consistent.)
Your legal counsel after the ZAPPL.IO crowdfunding has understandably shown concern for your use of the phrase "shares in ZAPPL.IO" and naturally has advised you to manage perception towards the idea that it was a loan. I can say with certainty, I purchase ZAPPL based on my understanding that I was buying a part of a share in the profits of ZAPPL.IO, the decentralised version of Twitter, that would be launched on the Steem blockchain.
For me, the most important question now is when the buybacks will end and what will happen to ZAPPL after they do. The difference in the perception of value of ZAPPL if convertible to ZAPPL.INC shares is potentially huge and given that ZAPPL is trading on the DEX in a free market, could have a massive impact on the price of ZAPPL and the cost of buying back the asset.
Just to clarify, my questions are;
How long are the buybacks going on for?
What happens to ZAPPL not bought once the buybacks end?
Approximately when will you know if ZAPPL DEX asset will be convertible to ZAPPL.INC shares?
Thank you.
It supposed to be 49% it was an error in the post.
It was stated that profit would come from the open market trade that is allowed for the tokens. We never once mentioned dividends and permanent stake in any post or conversation.
So we meant non-permanent in the fact that those coins will all be bought back there were never meant to be a permanent coin . All coins will be bought back.
Just to clarify, my questions are;
How long are the buybacks going on for?
A: Back buys will occur until all the coins are back into our possession.
What happens to ZAPPL not bought once the buybacks end?
A: They will be all bought back we can force return coins to our self and send users who refuse to sale the coins worth.
Approximately when will you know if ZAPPL DEX asset will be convertible to ZAPPL.INC shares?
A: Around the first of the year, legal counsel for crypto currency is very limited in the united states. So we do have to wait our turn sadly in most cases for lawyers who have yet to be snatched up by other start ups.
Thank you for answering these questions. Just a couple of additional points...
If it is a free market....as in free to find its value based on supply and demand, what do you mean by force holders to sell?
who determines the price at which you force a sale?
The price is a function of demand based on perceived value of the asset. That perceived value, at least for some was based on the idea that there would be regular buybacks of the token from ZAPPL.io profits leading to a decrease in supply and presumably an increase in percentage share of profits which would presumably grow. If you can force sale at a price you decide, that is an untenable risk to any holder. If you don't force holders to sell the asset, based on your own crowdfund description and your own statements about profit coming from the free market exchange of the asset, you would have to continue buybacks until you were able to buy back all the tokens naturally. The 2nd path is the only one that makes any sense and is the closest to the perception your own crowdfunding post created....certainly for me.
What is the issue with continuing the buyback naturally?
Look I appreciate that these are hard questions. I hope you understand why they need to be asked. You've had a great deal of support from the Steem community and you are asking for more. When I hear the words forced sale....no mention of that in the crowdfunding post....it increases my sense that something is very wrong here.
There is no problem you just asked what could we do if someone refused to sale back the final remaining coins. That's a choice that can be used, we would prefer it be natural.
If we had to force a sale, it would likely be at last market sale price.
We will likely go off the market price for purchases like we planned to. But some of the value comes from the perks. 7 days after the site launches though anyone who buys them after that point won't be getting perks. At that point there are a freely traded coin that we are buying back.
I want to sincerely thank you for making the effort to answer these difficult questions. I don't think the way this has been done is perfect, but I know that it is very hard when you are launching a project and how difficult it can be to get everything right. I feel and hope that that you are doing your best and for myself am happy to conclude that if you follow what you've said for the dex ZAPPL holders, that's ok.
I wish you all the best for your ZAPPL.INC funding campaign and for the development of your new products. I hope ZAPPL.IO is a success for Steemians in general and that it adds utility to the Steem blockchain and economy.
All the best.
I like toast 🍞
I was under the same impression that the Zappl tokens were shares and could be potentially profitable. Are there any benefits of holding the old tokens now that the new ones are out?
They would potentially be profitable do to the free market trade of the coins on bitshares.
Good to see this updated explanation for better transparency and understanding.
Well I'm glad it was explained in a way that could be understood.
Thanks for the information!
No problem.
No need to be apologetic here, I think the terms were quite clear from the beginning.
Just keep on working on the product!
Microblogging but with the following 3 innovations:
One of these 3 would be interesting to see how this could change social media as we know it. ZAPPL has all 3 covered!
Keep on truckin'
Thanks for understanding.
The transparency and your response towards people is very appreciating
No problem
That was very educative 👏👏👏👏
I just hope it explained a tad bit.
This post has received a 47.27 % upvote from @booster thanks to: @thedegensloth.
@zappl,
I am a new fan of yours. Yeah I meant fan, coz I like what you have written here. This is great! Yeah thanks for you I could get a clear image about DEX!
Cheers and awaiting read the next one!
No problem and thanks.
Is there an update regarding the 'diamond' reward tier? There was a 'soon to be announced' filler for it, any news?
Do to some of our features not being public we will likely address this after launch.