Over the last 6 months, we have seen a positive increase in activity on the LocalCoinSwap P2P exchange as well as achieved fantastic brand awareness within the wider crypto community.
Although we have seen improvements in the vital statistics such as signups, trade advertisements posted, completed trades, trade completion rates, and average active user wallet balances, we have not yet reached a level of profitability due to ongoing development and operational expenses. As such, there will not be a dividend distribution for Q3 2019 as there is no profit to be distributed.
With that said, we have listened to the community and heard the calling for a fixed rate of return to LCS token holders regardless of profitability. We have also heard the voices from the community that LCS token holders want more of a say. So we are excited to say that we are officially going to have our 3rd official community vote!
Why Community Vote #3 Matters?
The objective of this vote is to decide whether or not we transition our LCS token model from a dividend model to a buyback and burn model.
Awareness of LocalCoinSwap and trust in the platform is building at a strong rate. As of Q3, well over $1 million of bitcoin alone has passed through users' accounts and we are trending towards a state of profitability. We want to ensure these growths of returns and future profitability are equitably passed on to LCS token holders.
This vote will determine how LCS token holders should expect returns in times of unknown profitability, as well as decide how to strike a balance between the current dividend distribution model, and the issue of numerous transaction fees taking away from dividend returns with the upcoming non-custodial implementation.
The community is hugely important given the underlying ethos of the LocalCoinSwap project. Unlike other monopolistic exchanges only looking out for their own interests, the LocalCoinSwap team does not make big decisions that may affect the long term positions of LCS holders lightly, or without consulting the community. This is why the voting system was conceived and implemented alongside the exchange. If you own LCS Cryptoshares then your vote counts!
Schedule & What’s Next?
Following up, we will shortly announce details of the “Community Vote #3 - Buyback and Burn Model” which will outline the details of the third community vote. In addition to this, we will continue to compile any questions from the community into a “Vote #3 Community FAQ” so that we continue to remain transparent and maintain open communications with the community.
We will also be holding a special Community Vote #3 Ask Me Anything (AMA) on Tuesday, September 17, 2019 whereby the LocalCoinSwap team will be available in our English Telegram channel for an hour to discuss this latest Community Vote and feedback on any pertinent topics that matter to the LCS community. We encourage you to submit your questions in advance if you are unable to attend.
The following schedule will show the expected timeframe for the voting process and the steps to determine the Community Vote #3 outcome.
- Wed 11 Sep - Community Vote #3 Announcement live
- Thu 12 Sep - Community Vote #3 FAQ live
- Mon 16 Sep - Quarterly Revenue Announcement
- Tue 17 Sep - Community Vote #3 Ask Me Anything (Live Telegram AMA)
- Wed 18 Sep - Vote #3 Snapshot
- Fri 20 Sep - LCSV3 tokens distributed & voting is opened to token holders
- Fri 20 - Mon 7 Oct - Voting open to LCS token holders
- Mon 7 Oct - Vote outcome announced
If this vote outcome determines that we are to remain with the current dividend model, we will then announce the second round of voting which will determine any further structural changes that are required to be made to the dividend process, such as payment of dividends in a single cryptocurrency.
If you have any questions about the voting process, we encourage you to head over to our Telegram channel to chat with our Community Managers. We will also be publishing a "Community Vote #3 FAQ" tomorrow which we will continue to update with your questions and will be holding a Live Telegram AMA on Tuesday September 17, 2019, so that the LCS community can chat directly with the team.
As always, we would like to thank the LCS community for their ongoing support, contributions and feedback.