** Rating Has Been Edited **
I will not edit my review content below as I want anyone to see my initial concerns and how the project addressed them. --See Comment Section.
One of my concerns was addressed and answered, allowing me to move this from a 3 to a 4 rating.
The other concern (the bigger issue) is still open, but they have stated that they will be circling back to update me on how this is being addressed in v1 of the staking.
-------- The Original Review --------
As something progresses and becomes more advanced, it is likely to encounter a corresponding increase in complications and difficulties.
Common Wealth has positioned itself at the cutting edge by introducing NFTs representing an investor's contribution to the fund so they can exit the position anytime.
They are also allowing NFT owners to fractionalize their NFTs. For instance, one can split (fractionalize) their NFT into two NFTs, each NFT representing 50% of the contribution. Selling one NFT could allow them to recoup their initial investment while retaining the other NFT as a free money bonus. This fractionalization practice is likely to become common among investors.
That covers advancement; now, let's discuss the increased complications.
Another crucial aspect of the program is staking WLTH tokens for up to four years to reduce the carry fee from 50% to 10%. The duration of the staking aligns well with the concerns I addressed in my other reviews about the incubation time of the funds.
However, what happens if I stake the required amount for four years to minimize my carry fee to 10% and then fractionalize and sell 50% of my NFT on the open marketplace?
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Does 50% of my staked WLTH tokens transfer with the NFT? Should I factor this into the sale price?
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Will I be "over staked” for that fund since I only own 50%? Will I need to wait up to four years to retrieve my excess tokens?
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What if I sell the entire NFT? The same questions apply. What happens to my staked tokens?
I'm certain they will devise a solution, but as an investor, I want all my available funds to be actively working for me rather than being needlessly locked away, so a clear answer is needed here. Show Less
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