Nexo, a leader in the digital finance space, announced on July 1, 2020, that they would make their third dividend payout on August 15, 2020. The payouts will be made to all eligible NEXO Token holders. Nexo will release the details of how much each holder will receive on August 15. It is expected that the third payout will reflect the growing profitability of the company.
What the Team Had to Say
According to the Managing Partner of Nexo, Antoni Trenchev, the company has been doing well. It has experienced constant growth even in the face of the economic downturn during COVID19. He noted that the company has continued to roll out products for its user base such as the Earn on Crypto product that was launched towards the end of June 2020. Such launches show the team’s confidence in the Nexo business model, according to Trenchev.
The Managing Partner of Nexo said that the third scheduled dividend payout is the icing on the cake after a few turbulent and exciting months. He said it was a reflection of the company’s commitment to reward NEXO token holders, who are the companies biggest supporters.
The Dividend Payout
Nexo Finance periodically distributes 30% of their profits to NEXO token holders. In the previous payout on August 15, 2019, the company distributed $2,409,575. Their first payout was on December 15, 2018. During that time, NEXO Token holders received a total of $912,071 in dividend payouts.
The dividend distribution model used by Nexo is quite innovative. The company rewards long-term investor confidence while reducing market volatility close to the ex-dividend dates. Payouts are split into two:
Base Dividend
These are paid out to all eligible holders of NEXO tokens proportional to their holdings.
Loyalty Dividend
Loyalty dividends are paid out to token holders based on how long they have held NEXO in their account from one ex-dividend date to the next. In terms of the loyalty dividend structure, the total amounts paid out are no less than 1/3rd of the total dividends that are granted to NEXO token holders.
The Utility of NEXO Tokens
Besides earning dividends for holding onto the, NEXO investors have utility within the Nexo ecosystem. One of the utility features is that when users pay their interest in NEXO, they get a discount on the interest applied to their loans.
Another benefit is increased loan limits. Users can use their NEXO to obtain an instant loan from the platform. When they do this, they can get increased loan limits. This is extremely beneficial to the users, especially during times right now when traditional banks are scaling back their lending divisions.
About the Nexo Platform
Nexo is a leader in the regulated digital finance space. Their mission has always been to maximize the value of crypto for crypto holders. They offer tax-efficient instant lines of credit to crypto owners without having to sell their holdings. All the assets held by Nexo are covered by custodial insurance up to $100 million. Besides that, the Nexo Wallet uses military-grade security to keep assets safe. Thus far, the platform has processed over $3 billion in over 40 fiat currencies. They have over 800,000 users in over 200 jurisdictions.
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