ZenSports is pleased to announce the most recent and final payout from our 2019 Dividend Payout Program. Our 2020 Q1 dividend payout was made yesterday, April 9, 2020 to all SPORT security token holders in the amount of 1,129,725,273.65 SPORTS utility tokens.
Despite the COVID19 crisis that shut down all of the leagues on March 12th/13th, we had the best quarter ever for SPORTS betting volume, which checked in at 1,582,396,036.44 SPORTS tokens wagered from January 1st through March 12th.
The ~1.13B in SPORTS tokens issued for this quarterly dividend is less than the ~1.58B in SPORTS tokens wagered this quarter because we’ve now reached the cap on this particular 2019 Dividend Payout Program. Per the original blog post announcing the dividend back in August 2019, after all non-ZenSports held SPORT security tokens have received an equal 1:1 amount of SPORTS utility tokens (based on percentage ownership at the time of each distribution), this particular quarterly dividend payout will end.
Heading into FY 2020 Q1, we had issued 1,627,888,701.35 SPORTS utility tokens as dividends to SPORT security token holders. As of the end of FY 2020 Q1, there were 2,757,613,975.00 SPORTS tokens not held by ZenSports in reserve. The remaining SPORTS utility tokens available for distribution in the FY 2020 Q1 dividend payout is thus calculated as follows:
2,757,613,975.00 not held in reserve by ZenSports minus 1,627,888,701.35 already paid out = 1,129,725,273.65 SPORTS tokens available for distribution in FY 2020 Q1.
This now concludes our 2019 Dividend Payout Program.
But what about future dividends?
As discussed in our original blog post last summer, as a decentralized platform, cryptocurrencies are at the heart of our philosophy of how we believe the world will eventually manage all securities and streamline utility payment functions. We saw that there could be a better way for private companies to provide returns to investors other than simply having to wait for an IPO or M&A event in 7–10 years. Security tokens offer a streamlined way for doing that. Yes, we also have a traditional stock structure for investors and employees, but the notion of a security token as a means to provide investment returns is near and dear to us, and we believe it’s the future of securities.
We have every intention of paying out future dividends, but those will be based on profits instead of just pure betting volume, and security tokens held by ZenSports in reserve will also receive future dividend distributions (something that did not happen in the FY 2019 Dividend Payout Program). It doesn’t take much math to figure out that we’d run out of SPORTS tokens to distribute if we continued distributing them based on betting volume, as the betting volume could theoretically be infinite. Basing future dividends on profits and allowing the company to retain its share of dividends based on its percentage ownership of SPORT security tokens is the correct structure under a decentralized system of profit distributions.
The ZenSports’ Board of Directors will make all determinations about future dividends to pay out to SPORT security token holders. Any such future dividends and their structures will be announced by the 15th of the month following each fiscal quarter (April 15th, July 15th, October 15th, and January 15th).
As always, investors can find out all details and analyses behind both our SPORT security token, SPORTS utility tokens, and dividend payouts on Google Drive at:
Investor inquiries can be sent to ZenSports Co-Founder & CEO, Mark Thomas, at [email protected]