Dividends potential

tl;dr the dividends are currently used as FUD but it might be the key to keep the value growing for a long while

Ok, there's still a lot of uncertainty considering the amount of profit that will be shared with token holders, and the profit itself. But I think it's beneficial for them to actually give the best dividend possible to token holders. If anyone has more confirmed infos about that it's welcome.

I'll just make a quick exemple that could be realistic.

Let's say Modum breaks even in 2018 like they expect but makes a 10 million profit in 2019. Half of it goes into the company for further development, and one million to the team directly. That makes 4 millions left for token holders.

At the current marketcap of 40 millions, that would mean a 10% dividend. At current prices of 2.50$ a token and 300$ an ETH, you have to own 1'200 MOD for 1 "free" ETH.

If people see this, don't expect any further growth but are ok with only a 5% dividend, the marketcap will adjust to double value.

Don't forget the team has/will have 30% of the tokens, 9 millions. If the marketcap doubles because they give shareholders 40% of the 10 millions, 4 millions $, the value of their tokens goes from 22.5 millions$ to 45 millions$.

So with a 4 millions $ dividend, they "win" 22.5 millions $. That's basically why I trust them to make the right choice and satisfy investors, not to be nice and please us, but make a x5.5 on every $ they give us.

edit for a bullish perspective : the average dividend for share holders in tech companies is 3.2% (http://www.dividend.com/how-to-invest/comparing-dividend-stock-sectors-by-yield/)

that means, for a 4 million $ dividend, the market cap should be 133 millions, 300% of the current one