Enterprises

Entrepreneurs that wish to offer their products and services to the Kingsilver community will be able to create tokenised Kingsilver Enterprises and sell a percentage of those tokens to the community, which can then be freely traded on the Kingsilver Exchange. Kingsilver Enterprises will be able to design utility into their token as well as NFTs, all within a simple, easy to use web interface.

Notes

Enterprise NFT holders are able to raise money for their Enterprise in two ways: first, by offering a share of revenue to $ASLN stakers, who unlock capital from the Unmanaged Reserve, or by directly minting and selling Aslan NFTs, which grant owners a percentage of revenue for an agreed period of time, and upon their expiry are offered to the Enterprise to buy back, and are extended if the Enterprise can't buy them back. Enterprises can essentially use Aslan NFTs to borrow funds from retail investors, using their business success as collateral, and revenue as interest.

Academy Enterprises

The first Enterprises in the Kingsilver ecosystem will be within the Academy (academy.kingsilver.com). Every Academy partner will have their own tokenised KS business, which is a recognised corporate entity, like an LTD, within the Kingsilver Republic DAO. The ownership of their enterprise is represented by an Enterprise NFT.

Any time an Enterprise wishes to raise money it can open the doors to users to stake $ASLN on their Enterprise which grants stakers an Aslan NFT, and in so doing, unlocks capital from the Unmanaged Reserve which they can then use to help grow their business.

Exhausted Unmanaged Reserve

If there are currently no funds in the Unmanaged Reserve, users can invest their stablecoin directly, but where ASLN stakes are 100% redeemable, direct stablecoin investments are not, and so offer different staking dynamics. For example, the Aslan NFT could represent a staking period of six months, upon which time the Enterprise could choose to 'buy back' the NFT for the amount that was originally staked. If the Enterprise chooses not to, or can't afford it, the NFT could extend its life for a set period of time, continuing to yield revenue shares, until the next buy-back opportunity comes around. This means that if the Enterprise succeeds, it is incentivised to buy back their Aslan NFTs as that would mean keeping more of their revenue long term… and so ASLN stakers can get their original stake back if they stake in the right Enterprises.

Wavecounters

The first Academy Enterprise will be Wavecounters, a crypto trading education community centred around Elliott Wave Theory and other complimentary Technical Analysis methodologies.

Wavecounters is selling a catalogue of courses/memberships on the Kingsilver Academy, and sales will be from crypto payments in the form of a stablecoin.

Any time Wavecounters wishes to raise money, it can open the doors to users to stake $ASLN on their Enterprise, which grants them an Aslan NFT, and in so doing, unlocks capital from the Unmanaged Reserve which they can then use to help grow their business.

If there are currently no funds in the Unmanaged Reserve, users can invest their stablecoin directly, but where ASLN stakes are 100% redeemable, direct stablecoin investments are not, and so offer different staking dynamics. For example, the Aslan NFT could represent a staking period of six months, upon which time the Enterprise could choose to 'buy back' the NFT for the amount that was originally staked. If the Enterprise chooses not to, or can't afford it, the NFT could extend its life for a set period of time, continuing to yield revenue shares, until the next buy-back opportunity comes around. This means that if the Enterprise succeeds, it is incentivised to buy back their Aslan NFTs as that would mean keeping more of their revenue long term… and so ASLN stakers can get their original stake back if they stake in the right Enterprises.

Enterprise Valuation

Enterprises are valued by Valuators.

Enterprise Tokens

Enterprises are tokenised, and so upon creation, branded Enterprise Tokens are minted. Enterprise Tokens represent the rights to the revenue generated by that Enterprise, and so Enterprise Tokens are held by those Enterprises (they're not held by any individuals).

So for example, Wavecounters will have Wavecounters ETs (Enterprise Tokens).

The USD value of an Enterprise Token is determined by Valuators. This means new Enterprise Tokens can be minted and "sold", at that valuation.

One million Enterprise Tokens are minted when Enterprises are created.

If an Enterprise is valued at $1,000,000, then one of its Enterprise Tokens will be worth $1. If that Enterprise then sold $1,000,000 of new Enterprise Tokens, the valuation of the Enterprise will double to $2,000,000, but the value of their Enterprise Token will remain the same, as there are now 2 million of their Enterprise Tokens in existence. The only thing that increases the value of Enterprise Tokens, then, is the increasing valuation of the Enterprise.

What happens when Aslan is staked?

When Aslan is staked in an Enterprise's staking pool, an equal value amount of stablecoins from the Unmanaged Reserve is used to purchase newly minted Enterprise Tokens, according to the present valuation of the Enterprise and the value of the Aslan staked, and the Enterprise Tokens are stored in that Enterprise's Staking Pool, much like Management Tokens would be minted by Hedge Funds and used to track the value of the managed crypto assets. Aslan stakers receive an Aslan NFT.

So staking $1 million worth of Aslan on an Enterprise Staking Pool will increase the valuation of that Enterprise by $1 million, and will dilute the prior investors 'shares.

How are dividends worked out?

If we go the dividend route… the problem we run into is how to ensure Enterprise owners are being honest with their Dividend payouts… they could be incentives to just keep pocketing profit via 'expenses', and never actually pay out any Dividends.

If this happened though, the value of the Enterprise Token would collapse, as Valuators would see that, historically, dividends are rarely, or never paid out. Enterprise owners would then be incentivised to ensure that regular, and fair dividends were paid out, relative to the growth and success of the Enterprise, which would ensure the price of their Enterprise Token continued to rise. Owners of the Enterprise will have a huge percentage of the total Enterprise Tokens, and so want the value of their Enterprise Tokens to go up so that one day they could sell a percentage of them for a huge sum of money.

We would have to have an accounting system that tracks business expenses, so it was clear and transparent what the profit of the Enterprise is… and a way to validate/prove the expenses (so Valuators could easily determine if the Enterprise was acting honestly).

What happens when the Staking period expires, and Aslan Stakers want to redeem their Aslan?

The original investment value needs to be paid back to the Unmanaged Reserve, and the growth in valuation the Enterprise has experienced since the Aslan stake, divided by the percentage of Enterprise Tokens the stake represents, needs to paid out to the Aslan staker, with a small capital gains tax being paid to the Unmanaged Reserve.

Since Enterprises might not have the cash available in their treasury, unstaking Aslan from Enterprises will require a 30-90 day time to complete.

Either that, or the money is automatically shaved off the Enterprises revenue, and so the debt is paid off over a number of week or months.