LCS Cryptoshare Dividends Explained

. 7 min read

One of the best ways to generate an income in the world of cryptocurrency is through the receivership of cryptocurrency dividend tokens. Cryptocurrency dividend tokens can provide you with an ongoing passive, financial return -  or a ‘dividend’. Cryptocurrency projects that create dividend tokens are making a promise to their token holders that, if they make a profit, a percentage of that profit will be shared with the owners of the tokens.

LocalCoinSwap is a community-owned, decentralized, peer-to-peer (P2P) cryptocurrency exchange that gives 100% of its profit back to its token holders in the form of a cryptocurrency dividend token called ‘LCS Cryptoshares’. This article explains how LCS Dividends work and how you can make a passive income by becoming an LCS Cryptoshares token holder on the LocalCoinSwap P2P exchange.

What are LCS Cryptoshare tokens?

LCS Cryptoshares are an ERC20 cryptocurrency token that give holders the right to earn profits from the LocalCoinSwap P2P exchange.

Every LCS Cryptoshare token entitles the holder to receive an 'LCS Dividend' token that is sent out to each person at the end of every 3 months on a 1-to-1 basis. Each LCS Dividend token entitles the holder to receive an equal portion of the profits from the LocalCoinSwap exchange from the previous quarter.  

If you own 10 LCS Cryptoshare tokens you will receive 10 LCS Dividend tokens or if you have 100,000 LCS Cryptoshare tokens you will get 100,000 LCS Dividend tokens.

Profits from the exchange are distributed via these LCS Dividend tokens which can then be unlocked on the LCS platform to reveal underlying cryptocurrencies.

So, for example, if Bitcoin, Dash and Litecoin were traded on the exchange that quarter, then if you hold LCS Cryptoshare tokens, you will receive an equal percentage of Bitcoin, Dash and Litecoin in an LCS Dividends token.


What are the Advantages of Dividends?

There are a range of advantages to receiving dividends, including:

  • A Passive Income Stream:
    LCS Cryptoshare give you the opportunity to receive a passive income via the trading that occurs on the LocalCoinSwap P2P exchange. This means that, as an LCS Cryptoshare holder, each person will automatically earn a perentage of the profits in cryptocurrency every 3 months.
  • Exposure to a Wide Cryptocurrency Portfolio:
    Due to the fact that the dividends are paid out in all of the cryptocurrencies that were traded on the exchange during that quarter, you can gain exposure to a wide range of different cryptocurrencies which you can then decide to trade or hodl.
  • LocalCoinSwap Voting Rights:
    By holding LCS Cryptoshare tokens, you gain instant voting rights to decide on important operational decisions related to the LocalCoinSwap P2P exchange. All voting is done via the Ethereum blockchain making LocalCoinSwap a cryptographic democracy.

How are LCS Dividends Calculated?

The value of an LCS Dividend token is determined by the profit generated on the LocalCoinSwap P2P exchange every quarter.

The calculation is as follows:

Revenue - Expenses = Profits

  • Revenue:  LocalCoinSwap generates revenue by placing a 1% fee on all successfully completed buy or sell trade advertisements on the platform. The key is the words "successsfully traded".

    Whilst there is no fee to simply create and post a buy or sell trade advertisement on the LCS P2P exchange, there is a 1% fee taken from the buyer or seller who placed the advertisement once they complete a successful trade. This is also often referred to as a “market maker” fee.
  • Expenses: Expenses are estimated to be 20% of revenue every quarter.
  • Profit: Profit is calculated as “revenue - expenses”. Profits are paid to token holders in the form of all the cryptocurrencies traded on the platform that particular quarter.

For example, if the total revenue for Q1 2019 is $1000 USD and expenses are 20%, that leaves a total profit of $800 USD for Q1. (1000 - 20% = 800).

PLEASE NOTE: As we are still in soft launch mode, the first LCS Dividend payment on February 26th, 2019 will be calculated using revenue only. LocalCoinSwap will not be taking any expenses out of the dividend payment as per the usual dividend calculation. Please see "Dividend News: 2019 Payment Schedule & Bonus Update" for more information.

How are Dividends Paid?

Every quarter, a NEW LCS Dividend token will be uniquely created by the LocalCoinSwap development team and sent to LCS Cryptoshare token holders. Each LCS Dividend token holds an equal portion of the profit from the LocalCoinSwap exchange.

The naming protocol of the dividend tokens will be LCSD2019Q1, LCSD2019Q2, LCSD2019Q3 etc with the format representing the year and quarter that the dividend is paid in.

To get the cryptocurrency profits out of the LCS Dividend Token, you must send the LCS Dividend Token to the LocalCoinSwap platform where it can be redeemed or traded. By default, if you redeem your dividends, all of the cryptocurrency inside will then be sent to your LocalCoinSwap wallet address or, if you prefer, a specific wallet address outside of the platform.

What are the Dividend Payment Dates in 2019?

The dividend payments dates in 2019 are:

  • February 26, 2019
  • June 20, 2019
  • September 20, 2019 and
  • December 20, 2019

The only variation in the quarterly date fixture is that the second dividend payment will be extended to just under 4 months in order to align the dividend payment process with traditional business quarters.

How Do You Know Where to Send my Dividend Tokens?

We take a snapshot of all the addresses holding LCS Cryptoshares at the end of every quarter. This is possible because all LCS Cryptoshare tokens are held on the Ethereum blockchain and a feature of decentralized blockchains is that all wallet addresses are visible for all to see. We have no way of knowing which wallet is owned by whom, no one does. We can only see a wallet address is holding 1000 LCS Cryptoshares, for example, so we send 1000 LCS Dividend tokens there. Only you control your private keys and can unlock the dividend tokens held in your preferred wallet.

Where Must I Keep My LCS Cryptoshares to Receive Dividends?

In order to receive LCS Dividend tokens, LCS Cryptoshares tokens must be kept in either the LCS wallet on the LocalCoinSwap P2P exchange or in any personal ERC20 wallet that you own.

LCS Dividends may not be redeemed if they are held in an exchange such as Hotbit, so please ensure that you move your LCS Cryptoshares to the LocalCoinSwap platform or to an ERC20 wallet in time for the snapshot and dividend distribution.

Your LCS Dividend tokens will be sent automatically to that address on the specified dates we have listed in this article.

It is important to note that LCS Dividend Tokens can expire if they are kept in an external wallet so, for peace of mind, we suggest that you either keep your LCS Dividend tokens on the LocalCoinSwap platform wallet, or always remember to transfer them to the LocalCoinSwap platform wallet before the next quarters dividend distribution occurs in order to ensure that they do not expire.

Can Dividend Tokens Expire?

Yes, LCS Dividend Tokens have an expiration date, however it depends where they are stored at the time of this expiration date as to whether they will automatically redeem or if they will expire.

From Dividend 2, and onwards, every LCS Dividend Token that has not been redeemed (you may hear this being referred to as 'unlocked') will expire immediately before the next quarter's dividend token is released. At this expiry time, all past LCS Dividend Tokens that have not been redeemed will be frozen and you will no longer be able to transfer or redeem the underlying crytpocurrency from those LCS Dividend tokens.

For example...

  • If your LCS Dividend Tokens are stored in the LocalCoinSwap exchange wallet at the moment of expiry:
    Your LCS Dividend Tokens will be automatically redeemed and the underlying cryptocurrencies (your dividends) will be sent to your LocalCoinSwap wallet.
  • If your LCS Dividend Tokens are stored off the exchange in a personal ERC20 wallet at the moment of expiry:
    Your LCS Dividend tokens will expire if they have not been redeemed on the LocalCoinSwap platform by the end of the following quarter.

What do you do with expired LCS Dividend tokens?

Any cryptocurrency profits from LCS Dividend Tokens that have not been redeemed before the expiry date will be added to the revenue for the following period and distributed to all LCS Cryptoshare token holders equally.

Frequency of LCS Cryptoshare Dividend Payments?

LCS Cryptoshare dividends will be distributed to token holders every 3 months aligned with traditional business quarters.

How Can I Buy LCS Cryptoshare Dividend Tokens?

To become an LCS Cryptoshare holder and start earning cryptocurrency you need to buy LCS Cryptoshare Tokens.

You can purchase your own LCS Cryptoshare Tokens in one of three simple ways:

  1. Post a Trade Advertisement on LocalCoinSwap to Buy LCS Cryptoshares:
    Register an account on LocalCoinSwap and then log in and post a buy trade advertisement on the platform. You can set the price and amount of LCS that you want to buy and then when a seller sees an agreeable price to sell they will enter a trade with you and sell you LCS Cryptoshares based on your conditions of trade -
  2. Buy LCS Cryptoshares from LocalCoinSwap Traders:
    Whilst logged in with your new LocalCoinSwap account, search the sellers currently listing trades for LCS Cryptoshares and buy directly from them on the platform under their conditions -
  3. Buy LCS Cryptoshares on a Centralized Exchange:
    If you want to purchase LCS Cryptoshares with another cryptocurrency, as opposed to direct for fiat cash, you can go to the exchange Hotbit and purchase LCS Cryptoshares with Bitcoin.

LCS Cryptoshare dividends are a dynamic way to earn cryptocurrency, giving token holders the possibility of a simple, no hassle stream of passive income and ongoing financial rewards.  By becoming an LCS Cryptoshare holder, not only do you own a part of the exchange that you trade on, but you also gain the opportunity to receive a varied cryptocurrency portfolio and a passive income every 3 months which is a great way to generate money and diversify your earnings in the cryptocurrency market.

Want more info on LCS Cryptoshare Dividends?

Don’t forget that you can join our LocalCoinSwap Telegram or Discord channels to learn more about our LocalCoinSwap Dividend process and our LCS Cryptoshare token. We love to hear from our readers and encourage you to come and chat with our team.

Join LocalCoinSwap and start trading Bitcoin, Ethereum & more on our P2P exchange!