Token Investment Pool Proposal
This is the proposed structure of the Token Investment Pool which is being voted upon during the Feburary 2018 AICoin Ballot. This will be added to the token term sheet if passed by The Collective.
Where does the capital come from for the pool?
The Token Investment Pool will be seeded with capital from the Start-up Investment Pool. (Currently the Start-up Investment Pool holds – $1.4m) This will be a one-time event that will take place at the inception of the Token Investment Pool. If the pool prospers, the profits will finance investment in other ICOs. If the pool loses the original seed capital, it will trade until all seed capital has been dissipated or until The Collective vote to dissolve the Token Investment Pool.
How are decisions made for investment?
Investments are made at the discretion of the Token Investment Committee. At least 2 members of the 3 person committee must approve an investment before it can proceed. (Due to the speed required for investment decisions, it is not practicable to put investments to The Collective for voting.)
Are there limitations in the amount that can be invested?
Up to 25% of the value of the Token Investment Pool (at the time of the investment) can be invested in any one ICO.
Can an investment be added to?
Not in a current round. If the token adds another funding event, the committee can approve an additional investment. Providing the token investment does not exceed 25% of the total value of the Token Investment Pool at the time of the additional investment.
Who is on the Token Investment Committee?
The Token Committee shall be formed of three members. One member is provided by the service provider team and two members of The Collective. If approved, the first vote for members will be held on March 8 – 11.
What is the term?
During the first election, the Collective Member with the most votes will have a two-year term and the Collective Member with the second highest number of votes will have a one-year term. In future, each member will serve a two-year term.
Can a Collective Member serve more than one consecutive term?
Yes, there is no limit to the number of terms a committee member can serve. The committee member must be a member of The Collective at the time they apply.
Can an investment be made in a Token if a committee member is a member of the ICO team?
The pool can invest in a token where a member of the pool is a member of the team. However, that member will be excluded from the vote. The other two members must decide unanimously to invest in the token. That member will not participate in the profits from that token sale.
What if a committee member stands down or is unable to complete their term?
If a Collective Committee Member cannot complete their term a new election is held to fill the empty committee position within 30 days of the formal leaving. If the remaining term is greater than 6 months it will be for the residual term. If it is for less than 6 months, then it will be for the remaining term plus 2 years.
The Service Provider can select an outside professional to represent their position on the Token Committee. Any cost will be the responsibility of the Service Provider. The Collective Member cannot pass their post onto another individual.
Is this a compensated position?
Yes. The position carries a commission of 1% of the profit gained from any investment initiated during the committee member’s tenure on the Token Investment Committee. Where they are no longer a member of the Collective or the Committee at the time of the sale, the Service Provider will attempt to pay this commission on a best endeavours basis. Any distribution that the service provider is unable to complete within 2 years of the sale, will be returned to the Token Investment Pool.
Under what framework are Token investments made?
Investments can be made during the pre-ICO period or under any scheme that compensates the Investment Pool with a preferred number of tokens over the basic investment. Investments can also be made in ICOs before the completion of the subscription at no discount providing that no other investors have received a bonus token distribution.
Are there any stipulation mandated in the ICO covenant before an investment can be considered?
There can be no investment in a token that performs an activity that would be deemed illegal in any of the System Provider’s jurisdictions. This list is currently the United Kingdom, EU, USA, Singapore or Hong Kong. The System Provider may change the list of jurisdictions at any time at its sole discretion with reasonable cause.
It also must be demonstrated that it will be possible to sell tokens. This can be through an exchange or token dashboard.
What are the goals of the Token Investment Pool?
Are there legal considerations?
In the event of a token falling subject to legal action, the System Provider reserves the right to hand the matter to a legal representative to protect the collective’s interests. Costs for this are the responsibility of the Collective.
When and how are profits taken from a token investment?
Any decision can be proposed at any time by two out of three members agreeing to a total or partial sale of the stake in an ICO.
Where will trading take place?
Tessier-Ashpool Holding or one of its subsidiaries will establish the accounts needed to purchase the tokens for the Token Investment Pool.
Are we limited to investing in ERC20 tokens?
No. However, there must be a viable and secure way to hold tokens The Collective has taken as investments.
What happens to the profits from an Token investment?
Profits, minus the Service Provider Fee and Committee Member Commissions shall be returned to the Token Investment Pool.
Please note that because this is a compensated position you will need to submit proof of identity and a current proof of address, not more than 3 months old if you are elected to the board.