How are equity tokens' dividends paid out?
Created by: Shani Koren
Modified on: Mon, 8 Apr, 2019 at 3:42 PM
Dividends are distributed automatically via equity token smart contracts. The payout conditions will be established up-front in the company’s term sheet. The company will transfer all proceeds to the Nominee. Through the Nominee, the platform will distribute the proceeds to the token holders. The legal framework and safety of the operation is ensured by the Token Holder Agreement and Investment and Shareholder Agreement, which are cryptographically hashed in Equity Token smart contracts.
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