4 ms·

But if it's an entitlement to a % of profits, then it is much more like equity.

• pryelluw 9y ago
  It's a contract to get dividends on a loan that is based on speculation of profit (not tied to any assets). So, yes, a worse version of equity in a startup.
  • JumpCrisscross 9y ago
    > a worse version of equity in a startup Minus the enforceability or equity and bond claims. So a combination of the worst elements of equity and debt plus additional negatives. Financial innovation at its finest...
    • pryelluw 9y ago
      It being blockchain based makes it innovative. I mean, it's linked lists 2.0: electro bugaloo
• charlesdm 9y ago
  It's a profit participating loan (PPL)