Buybac for “security tokens” in the Defi infrastructure.
Buybac is a buyback by companies of their own shares in the open market from shareholders.
Buybac relieves companies of excess liquidity, improves the ratio of stock prices and earnings per share and provides significant support for stock prices of companies.
Buybac, like paying dividends, is a way to reward shareholders. For example, in some countries the tax rates on dividend payments are higher in comparison with taxes on capital gains, then it is more profitable for companies to buy back shares than to pay dividends. In addition, the laws of most countries prescribe a mechanism for protecting the interests of shareholders and, in certain cases, companies are simply obligated to offer their shareholders an offer to buy back shares.
Thus, Buybac BTC for crypto companies and tokenized shares of stock companies will become a new trend in the Defi infrastructure.
In 2019, US corporations will spend more than $ 1 trillion on the repurchase of their own shares from shareholders.
In 2018, Buybac made 444 companies — $ 806.4 billion.
In 2017, 424 companies $ 519.4 billion.
Buybac among US corporations is growing steadily.
For the first half of the year Microsoft — $ 9.38 billion.
Wells Fargo — in the first half of almost $ 10 billion.
JPMorgan Chase spent more than $ 10 billion on share repurchases
Cisco — in the first half, $ 11 billion for the repurchase of shares.
Bank of America in the first half, $ 13 billion
Oracle bought back $ 16.3 billion from January to June.
Apple — in the first half, $ 41.96 billion
Buybac’s ever-growing scale shows that this will also be true for the DeFi economy.
The massive emergence of blockchain stablecoin projects with software, as well as the emergence of various government stablecoins, will cause hyper inflation of fiat currencies and increase the money supply.
And there will be a situation where stablecoins will fall into the category simply for measuring the instantaneous value of a product on the market, by analogy with a scale for measuring weight, length and other parameters.
Against the backdrop of inflation, corporations will begin to actively make Buybac into bitcoins, thereby saving the company’s profit from inflation.
Thus, DCRM DEX AnySwap becomes the ideal place for Do Crypto Buybac and will link “corporate shares to BITCOINS” on AnySwap.
It is also a promising way to add value to crypto tokens such as ANY, UNI, YFI.
Many DEXs today are looking for a way to add value to their “worthless” governance tokens. And they announce, for example, that they will redeem this token from the profit received, or announce that this tokens will stimulate liquidity.
And since the financial axiom of bitcoin is to have more value in the future than it is today, the “governance token” associated with bitcoin begins to guarantee its future value and value.
The DCRM mechanism was developed by the Fusion blockchain and guarantees indefinite decentralized storage and connection of bitcoins to pegged tokens. Thus, now any holder can be sure that even if the crypto company ceases to exist altogether, the holder will simply wait one year, and if necessary, even 10 years, but there will come a time when the value of bitcoin will be high in related shares to withdraw his money. Today, investors generally have no chance of a return on investment in the event of, for example, the bankruptcy of a company or the loss of a company’s dominant position in the market. But if a company invested bitcoin in its shares as a profit, then such shares, even if inherited, will cost a fortune even if the company itself no longer exists at all.
Also DEX AnySwap can provide bitcoin pegging to any crypto tokens, for example FTN, FSN, BNB and grant a lifetime decentralized storage service.
Stocks of companies that periodically add value to their tokens in the form of bitcoins will be more popular in the market than without such collateral. This, in turn, will guarantee and continuously increase the value of such “bitcoin backed tokens” in the market.
DEX AnySwap will also be able to formally provide for the issuance of tokenized shares for existing stock companies that will have bitcoins as collateral, and this is what removes many formal problems.
For example, today each stock exchange has its own listing requirements or rules:
- NYSE needs a minimum income of the company from 2.7 million dollars, the presence of shares in the amount of at least 1.1 million dollars, the minimum number of shareholders — from 2000;
- London Stock Exchange LSE — the share capital of the company must be at least 700,000 pounds sterling, 25% of the shares must not belong to the directorate, the company must be audited by the FCA, the company must undergo an external audit;
- Frankfurt Stock Exchange FSE, the company must have capital of 1.25 million euros, have an office in Germany, issue at least 10 thousand shares for free circulation;
- Shanghai SSE Stock Exchange, the company must operate profitably on the market for at least 3 years, the capital of the company must be at least 6.5 million dollars, at least 25% of the shares must be available for sale;
- Shenzhen Stock Exchange, the company must work profitably on the market for at least 3 years, I have a profit and the cost of fixed assets — at least $ 45 million.
At the same time, securities can be traded on several exchanges, but each of these exchanges requires its own list of documents. Therefore, many medium-sized companies remain outside of big business.
And soon these mid-sized companies may start applying for listing on crypto-DEX, which do not have such bureaucratic procedures and can ensure the issuance of share tokens at the user level.
For example, a condition for listing on DEX AnySwap is the ownership of ANY and positive voting by the community.
But in order to issue corporate tokens, the company will have to provide a bitcoin collateral, which will be tied to the issued tokens, which will be stored in the DEX Anyswap decentralized storage.
Thus, it enforces the formal rule of stock exchanges that requires the provision of value assurance guarantees for the issuance of new shares.
And DeFi DEX Anyswap technology allows you to execute this rule faster with less bureaucracy and more reliable, virtually non-combustible security for new shares. Even the bankruptcy of a company cannot depreciate such shares. This fulfills the formal collateral requirement for issued shares for regular companies and makes the issuance of bitcoin-backed tokens legal for many existing private companies.
And in general, in the future, only those corporate shares will have value that are decentralized to bitcoins.
The Manufacturing Company can always add new batches of bitcoin to the address of its smart contract in the AnySwap DCRM storage, which will link new batches of bitcoins to existing stocks.
For example, this can distribute future profit in bitcoins and increase the value of shares.
And if, for example, someone suddenly wants to extract bitcoins from a token, then such a stock token burns out and bitcoin issues the AnySwap DCRM storage.
The Bitcoin associated with the share is always stored in the DEX AnySwap DCRM and can only be retrieved in exchange for the share token, which in turn is destroyed. AnySwap DCRM knows the total volume of produced shares and divides the amount of bitcoins assigned to them evenly between them.
Any production company can always add new batches of bitcoin to the address of its smart contract in the AnySwap DCRM storage, which will link new batches of bitcoins to existing shares. In this way, the company’s future profit in bitcoins can be distributed and the value of the shares can be increased.
Quoted on the market 1 share = bitcoin in shares + value of future bitcoins that the share will receive.
Based on the current Buybac growth rate of 0.5 trillion over 2 years, the volume of Buybac corporations by 2030 is estimated at $ 6 trillion per year.
In this way, the decentralized Buybac AnySwap DCRM will protect the shareholders of companies from the depreciation of their shares, because the shares contain accumulated non-combustible value in the form of bitcoins.
Manufactured using innovative Fusion blockchain technology.
About Fusion
Fusion Foundation is a non-profit organization building the next generation infrastructure for decentralized global finance. By providing innovative companies and developers with the open source technology they need to build peer-to-peer time and value-based applications, the world will enjoy financial transactions that are more accessible, efficient and transparent than previously possible. Fusion’s seasoned team of industry veterans led by Founder and CEO DJ Qian, a blockchain pioneer who previously launched two top 20 global blockchain projects (VeChain and QTUM), is working to collaborate with financial institutions, cryptocurrency companies, businesses, peer-to-peer lenders, third-party app developers, academia, and the broader blockchain community. By providing the foundation that enables different cryptocurrency tokens, digital assets, off-chain values, and data-sources to be created and exchanged between the Fusion blockchain, other blockchains and financial systems, Fusion is moving ever closer to a globally accessible system for the free exchange of values. Visit www.fusion.org to learn more about Fusion and its partnership program.
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