BANKEX ERC-888 Token Protocol Being Tested For Dividend Distribution
BANKEX, a protocol that focuses on Proof-of-Asset to ease the exchange of assets, has recently announced that it has tested the latest ERC token, namely ERC-888, which according to the BANKEX blog, “was developed out of ERC-721”. As for classification purposes, any tokens that are distributed through ERC-888 will be recognized as a security token.
The ERC-888 token was created out of necessity, as it uses a calculation to determine how much payment token holders will receive in dividends. The computation involved is done by determining the “sum of funds on the smart contract and dividing it proportionately to the number of tokens held by system participants”.
— BANKEX (@BANKEX) June 2, 2018
The entirety of this calculation is believed to vary according to two different scenarios:
- Token holder has tokens, but does not have the right to receive dividends
- Token holder has the right to receive dividends, but does not have tokens
To precisely calculate dividends payout in the two aforesaid scenarios, BANKEX has supposedly introduced a “variable”, which varies according to one’s situation. In particular, if one does not have the right to receive dividends, then the “variable” will take on a negative value.
Here is the formula used to compute the number of dividends:
Benefits of Using the formula above and ERC-888:
- Dividends stay unchanged during token transfer
- Users get their dividends instantaneously along with essential details
- ERC-888 utilizes less gas, resulting in cheaper production costs for miners
- ERC-888 is multi-dimensional, therefore it can tokenize real assets