Security tokens exist on blockchains such as Cardarno, Ethereum or Tezos. Crypto-graphically secured, they are used to represent shares of an existing or future asset. Elements Energy will use them:
1. To divide the ownership of existing renewable energy assets
2. To raise funds to install new renewable energy assets
The general public, investors or institutions who wish to invest in the asset, have to prove who they are before they deposit their funds into a secure holding account. During registration for the investment they are given a wallet address on the blockchain which will host the tokens.
Once sufficient funds have been collected to buy the existing asset or finance the future one the funding round closes. The collected funds become available to Elements Energy who invest them in the asset and generate the security tokens on the blockchain.
Elements Energy then send the security tokens to the blockchain wallet addresses which were collected during registration for the investment. Their distribution being in proportion to the investors’ funds deposited Vs the total sum collected.
As the renewable energy asset produces energy it is sold to the client who is contracted to use it. Elements Energy issue a monthly or Quarterly bill to the client to collect this money.
The bills paid by the client are converted into «global stablecoins» by Elements Energy and sent on to the token holders’ wallet addresses, in proportion to their holding, in the same way that a dividend is paid to shareholders.