LCS Cryptoshare Dividends Explained

. 5 min read

One of the best ways to generate an income in the cryptocurrency market is through the receivership of cryptocurrency dividend tokens. Cryptocurrency dividend tokens can provide their owners 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 (LCS) is a community-owned, decentralized, peer-to-peer (P2P) cryptocurrency exchange that gives 100% of its profit to its shareholders (token holders) in the form of a cryptocurrency dividend token called ‘LCS Cryptoshares’. This article explains how LCS Cryptoshare dividends work and how you can make a passive income by becoming an LCS token holder on the LocalCoinSwap P2P exchange.

What are LCS Cryptoshare Dividends?

LCS Cryptoshares are an ERC20 cryptocurrency token. Each LCS Cryptoshare entitles the token holder to receive a dividend token that is sent out to each person at the end of every financial quarter. Dividend tokens are distributed to all LCS Cryptoshare holders on a 1 to 1 basis. This means that if you have 10 LCS Cryptoshares you will receive 10 LCS dividend tokens. If you have 100,000 LCS Cryptoshares you will get 100,000 LCS dividend tokens. The dividend token contains any cryptocurrency that was used to trade on the exchange during the payment period. Each dividend token that you receive entitles you to a portion of the profits accrued over that quarter on the LocalCoinSwap platform.

Advantages of LCS Cryptoshare Dividends?

There are a range of advantages to holding LCS Cryptoshare tokens, including:

  • A Passive Income Dividend Stream:
    Dividend tokens give you the opportunity to receive a passive income, as a steady flow of cash, via trading occuring on the exchange. As a Cryptoshare holder, you can earn an ongoing stream of cryptocurrency paid to you in the form of a redeemable dividend token 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 excahnge during that quarter, you can gain exposure to a wide range of different cryptocurrencies which you can then trade or hodl.
  • Freedom to Redeem your Cryptocurrency at Anytime:
    Unlike other dividends tokens that can lock you into an undefined waiting period, once you have been sent your LCS dividend tokens there is no time limit to redeem them. You are free to do this at any stage once they are paid to you.
  • 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 Cryptoshare Dividends Calculated?

LCS Cryptoshare dividends are calculated as follows:

Revenue - Expenses = Profits

PLEASE NOTE: The first dividend payment on February 26th, 2019 will be calculated using revenue only. We will not be taking expenses out of the dividend payment. Please see "Dividend News: 2019 Payment Schedule & Bonus Update" for more information.

  • Revenue:  LocalCoinSwap generates revenue by placing a 1% fee on a successfully traded buy or sell advertisement. This is referred to as a “market maker” fee. There is no fee to simply post a buy or sell trade advertisement on the LocalCoinSwap P2P exchange, the 1% fee is only ever taken once you complete a successful trade.
  • Expenses: Expenses are estimated to be 20% of revenue each 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 quarter 1 is $1000 and expenses are 20%, that leaves a total profit of $800 for quarter 1. (1000 - 20% = 800).

How are Dividends Paid?

The LocalCoinSwap dividend token will be a uniquely created token for each specific quarter. Currently, the name of this token will be LCSdiv1, LCSdiv2 etc with a number representing the quarter that it is paid into. To get the cryptocurrency profits out of the unique ERC20 dividend token, all you need to do is send it to the LocalCoinSwap platform smart contract where it will be verified automatically and unlocked. By default, all of the cryptocurrency inside these dividend tokens will be unlocked and sent to your LocalCoinSwap wallet addresses or, if you prefer, a specific wallet address outside of the platform.

Where Should I Keep my LCS Cryptoshares to Receive Dividends?

LCS Cryptoshare holders are free to keep their LCS Cryptoshare tokens in their LocalCoinSwap wallet or in any personal ERC20 wallet that they own. Your LCS dividend tokens will be sent automatically to that address on the specified dates we have listed in this article.

How Do You Know Where to Send my Dividend Tokens?

We take a snapshot of all the addresses holding LCS Cryptoshares. This is possible because all tokens are held on the Ethereum blockchain. Every wallet address on the blockchain is visible for all to see - this is a feature of decentralized blockchains. 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.

What are the Dividend Payment Dates in 2019?

The dividend payment dates for 2019 are as follows:

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

The first dividend payment is on February 26, 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.

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 you need to buy LCS Cryptoshares. You can purchase your own LCS Cryptoshares 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!