Sharemarket on Ethereum

in ethereum •  7 years ago  (edited)

Was thinking about general crowdfunded business on the ethereum, was thinking something like this could work.

Bob wants to open a pizza shop - puts together a business plan determines that the total cost to setup and get to breakeven would be $100K. Bob creates an ethereum token "Bobs Pizzas", with 100,000 coins and sells them for a dollar each - He might buy 20,000 himself before offering the rest to the public.

Assume a successful sale - Bob has 100K and starts his pizza shop.

Lets say at the end of year one the business makes $10,000 net profit that would normally be distributed via a dividend. Instead, the business buys $10,000 of the coins on the open market (or as they become available) and then destroys them (maybe this could be done via a smart contract).

The coin holders (shareholders) can either sell (in effect taking the dividend but maintaining the same percentage of share in the company). Or not sell (in effect reinvesting the dividend to gain a greater percentage share in the company).

Could this work?!

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