NEXO, the world’s first platform to provide instant crypto-backed loans has just announced the date of their second dividend distribution.
The date of distribution is set to be August 15, 2019 whereas on August 1, 2019, Nexo will announce the amount of the dividend which will reflect the increased profitability of the Nexo enterprise. Notably, 70% from the company’s Net Profit is reinvested back into the company, and a fixed 30% from the Net Profit is paid out as dividend to the eligible NEXO Token holders.
How the Dividend Will be Distributed
Nexo has taken into account an innovative dividend-distribution methodology that rewards long-term investor confidence in Nexo and also decreases market volatility around ex-dividend dates. This approach results in the dividend profit-sharing to be split into two parts:
- Base Dividend — paid out to all eligible token holders proportionally to their NEXO Token holdings.
- Loyalty Dividend — paid out individually for each NEXO Token based on how long it has been in the Nexo Wallet from one ex-dividend date to the next. The share of the Loyalty Dividend will be no less than 1/3 of the total dividend amount to be distributed in any given period.
The idea behind this approach is to ensure fairness in the dividend distribution, to prevent fraud, market and price manipulation which are sometimes witnessed with dividend-yielding common stocks around the world.
A few days back it was announced that Nexo will now offer investors the ability to earn a whooping interest of 8% per year on your assets. Also, the power of compounding ensures that every day a larger interest amount is credited into your account, letting you enjoy secure high-yield passive income without any fees or commissions.
For a detailed explanation about the NEXO dividends, visit the medium article here