Another Security Token Offering (STO) On Stellar (XLM) Make Its Debut In The Netherlands (VMC)
Another Security Token Offering (STO) On Stellar (XLM) make Its Debut In The Netherlands
Recently, Security tokens had reached a new milestone when the Federal Financial Supervisory Authority (BaFin) approved a prospectus by Bitbond to issue it's very first digital bonds. These bonds are launched on the Stellar blockchain and will represent the first fully regulated security token offering (STO) in Europe.
After Germany, now, another STO is coming that too on the Stellar Network in the Netherlands. VMC, a mass mobility solution has announced its security token offering. Back in 2018, they demonstrated their blockchain mobility solution with the “world’s first blockchain powered bus.”
The software company is working on solving the challenges present in urban mobility as the mobility of cities evolves rapidly. Now, they are coming with this new form of investment that is STO on the Stellar network which they believe is incredible because, they are “affordable, transparent and easily tradeable.”
Due to the fact that unlike utility tokens or coins, security tokens actually represent ownership of an asset and in VMC, it will represent a “revenue share of the transaction” in its platform, the company is going with STOs.
“The issuance of a security token gives our supporters the opportunity to be part of all this, to invest in the future of human mobility and to share in the financial benefits.”
The First Stellar Security Token In The Netherlands
The company will be sharing its revenues instead of profits that they believe fits better with the principles of blockchain technology and their own mission to better connect the mobility.
“This makes VMC the first security token in the Netherlands that will run on the Stellar blockchain. Investors can use Bitcoin (BTC), Ether (ETH), Stellar Lumens (XLM) or euros to participate in this security token offering”, reads the official announcement.
As for the reason behind going with Stellar blockchain, the company evaluated different platform as it states,
“After carefully evaluating different blockchain platforms we decided that the Stellar blockchain is the best fit for VMC, to leverage its fast and scalable blockchain.”
“VMC is the first Stellar security token in the Netherlands. Stellar is a decentralized payment transfer protocol. Its unique technology leads Stellar blockchain to be lightning-fast, instantly scalable and energy-efficient.”
This VMCST token has its starting price set at €0.20 and will follow a dual token structure. This is to provide stability it the network as while its utility token VAI will be used for transaction in the blockchain, security token will give the token holders up to 40 percent of revenue share that will be the transaction fees paid by corporate users.
“The VMC-ST token contains smart contracts on a Stellar-based protocol enabling automatic revenue sharing in a way that is fully compliant with regulatory standards.”
Instead of using the fee to further build on its platform, VMC will be distributing it to the security token holders as the VMC mobility platform is open and free for everybody to build applications on. This means the more transaction VMC processes, the more fee it collects and the more investor will receive. Hodl will play an important role here as the longer period of time, one hodls their token, the high the percentage of rewards, states VMC.