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NEST-Protocol / NEST-Improvement-Proposals

NEST Improvement Proposals
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Discussion on dividends and repurchase #12

Open lemmaxs opened 3 years ago

lemmaxs commented 3 years ago

Does anyone understand the difference between dividends and repurchase? Their pros and cons, as well as their scope of application, and their impact on system balance?

mattory029 commented 3 years ago

The main difference between dividends and repurchase is that a dividend payment represents a definite return in the current timeframe , whereas repurchae represents an uncertain future return until the nest are sold.The cash dividend provides a regular stream of cash for investors. It allows the nest holder to remain invested in nest and still receive regular cash flows. Cash dividend can be a big incentive for investors who rely heavily on their investments to meet their living expenses,especially investors who may not have another source of income.repurchase prevents a decline in the value of a nest by reducing the supply of nest. This is a good indication of the nest’s profitability and may boost its price in the long run. but under certain assumptions Nest’s market value is not affected， dividend or repurchase is not effect on the nest value.

lemmaxs commented 3 years ago

Why don’t more people discuss such an important issue?