Not everyone is lucky enough to have access to the stock market and the ability to buy shares in successful corporations like Apple or Coca-Cola. Many impoverished and politically restricted areas make such participation impossible for those who live there. However, thanks to the ability to tokenize virtually anything via SLPs (Simple Ledger Protocol tokens) and also to pay dividends on these same assets, myriad new possibilities have emerged. One of which being tokenization of traditional stocks, so people with nothing more than a $20-dollar smartphone and an internet connection can participate.
Also Read: SLP Token Market Cap Surpasses $50 Million
How SLP Tokens Work
SLP tokens are built on the Bitcoin Cash blockchain and function similar to Ethereum’s ERC-20 protocol. Anyone can have fun making their own SLP for just a few cents in BCH, and through the new dividends tool, issue payments to holders of these tokens at any time, in whatever amount they would like. This creates an opportunity for a business to become its own mint on the BCH chain, without going through all kinds of hassle or paying high fees. Once a new SLP token is minted, it can be held, used for special offers and unique functions, or as stated, issued to shareholders for the payment of dividends. For those interested in creating their own SLP token, it can be done easily via memo.cash or the Electron Cash SLP wallet.
Once an SLP is created it can be sent to effective shareholders who will receive payouts via the token when the issuer decides to send them. Each SLP has a unique token ID. Using Bitcoin.com’s SLP Dividend Calculator, a token creator can enter this ID and then enter the customizable payment settings such as amount and block height at which the payment should be broadcast. The tool will automatically calculate how much BCH each SLP token holder should receive proportionate to their token holdings. The calculator tool also allows tokens to be airdropped to users.
Back in August, news.Bitcoin.com’s Jamie Redman posted a detailed tutorial for issuing SLP dividends using the calculator tool. A video tutorial posted by Bitcoin.com Executive Chairman Roger Ver is also available, and goes into some potentially revolutionary uses for SLP dividends like making the traditional stock market accessible even to residents of third world countries. Describing a scenario where a traditional company stock like Coca-Cola is held by a financial custodian and then tokenized and sold, Ver states:
Right now the only people that can buy Coca-Cola stock are whatever institutions or somebody in a first world country … But if you tokenize the Coca-Cola stock now anybody, anywhere in the world with a $20-dollar cell phone can now own tokenized Coca-Cola shares.
Of course, it’s not just impoverished or geopolitically embattled parties that could make use of this opportunity. Anyone could. Further, if such SLP tokenized stock is sold at a premium due to the convenient service being provided, issuers might be incentivized to buy even more tokens — whatever crypto or token they are using — and then issue even more tokenized stock. This could theoretically lead to a largely tokenized, parallel stock system.
Darknet Markets, Bonds, and IPOs
Other possible applications for dividend tokens could be found in darknet marketplaces, bonds, and IPOs. With correct privacy protocols in place, darknet marketplaces might offer shares and rewards to their clients. Businesses can issue the tokens as bonds and pay interest on chain via the dividend. IPOs could be facilitated for anyone and everyone with the will to start a business, not just big corporations. Thanks to technology, striving for financial freedom and the ability to work for one’s own sustenance and happiness isn’t just limited to those with a Charles Schwab account anymore. Crypto and SLP dividends pave the way for true financial inclusion — not just more Wall Street special interests.
What are your thoughts on SLPs and tokenizing the stock market? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Images courtesy of Shutterstock, fongleon356, fair use.
Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.
comments powered by Disqus.