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Goal: To create a insurance against the concentration of tokens.
Function: The assumption of risk of failure of the newly formed capital, represented by the various tokens in the portfolio, to produce the wealth expected of it at the time the financed-tokenholder loan is made, would be the function of the insurance contract.
The Insurance contract is funded by the a insurance fee paid by the loanee.
A loan is offered to qualified token holder by a bank to buy a portfolio of newly issued EOS-based tokens, against the risk that the yield on the portfolio will not, within the loan term, defray its costs of acquisition.
Implementation: The entire portfolio acquired through one or more financed loans would be held in escrow until the purchase loan had been paid off.
What it does not do: It does not insure management or token holders against the risks of project failure.
Consider a simple portfolio of just eosDAC tokens. A new token holder applies for a loan through a bank. This portfolio of eosDAC tokens will be held in a escrow until the loan is paid off.
The loan is repaid through a combination of EOS tokens issued to eosDAC token holders and monthly payments by the loanee.
Once the loan is fully paid off, the portfolio of tokens is released to the loanee.
Those who hold large amount of EOS tokens will likely be able to concentrate their wealth by investing in EOS-based tokens early on and in significant amounts. This insurance contract gives those who are unable to put forth a significant amount of tokens early on a chance to participate in the process of acquiring tokens.
The main goal is not to generate profit, but rather to create a class of token holders that won't not exist otherwise.
References: The New Capitalist, A proposal to free economic growth from the slavery of savings. By Louis O. Kelso and Mortimer J. Alder. Pg 67