ICONOMI, the digital asset management application that makes it easy to invest in or get managed blockchain asset portfolios has announced that the minimum required seed for establishing a Digital Asset Array (DAA) fund has been lowered to $50K, the previous minimum for seeding a Digital Asset Array (DAA) has been $100K. This, of course, will help widen the pool of potential managers.
In order to maintain an entrance of serious, high-quality managers at this early stage, ICONOMI will be introducing a fee of 2,000 ICN for seeds between $50K–$100K and 1,500 ICN for seeds between $100K–$250K. DAA managers who seed $250K or more will not be charged a fee. Fees payable in native toke ICN is a new development of the platform, the current price is $0.91.
Now DAA managers will have the option to create a DAA with a smaller seed amount but an additional fee or a large seed amount and no extra fees. The ICONOMI team said that in future, minimum seed amounts will continue to be lowered to allow an increasing number of people the opportunity to create their own DAAs.
Fees to be introduced for rebalancing
ICONOMI noted that DAA managers rebalance twice a month, and has executed these rebalances free of charge. Now, the company will be implementing a new system in which rebalancing up to a 10% change in AUM per month will remain free, but if a DAA manager chooses to follow a more active strategy, a 0.1% rebalancing fee on the AUM that is rebalanced over the 10% threshold will be incurred. This new system gives DAA managers the freedom to manage their DAAs more actively.
Tokenization fee
There will be a 2,000 ICN fee for tokenization.
Buyback system
Finally, ICONMI announced that its ICN buyback model will be adjusted to make the best use of these new fees. Since the platform start, ICN has been both purchased and burned at the end of each quarter. Starting July 1, 2018, DAA management fees will be collected and converted to ICN on a daily basis, then burned at the end of each quarter. This adjustment allows the effect of buybacks to be more immediately reflected in the price of the ICN token.
Fee timeline
- The DAA creation and rebalancing fees will be introduced in May, together with a series of back-end features related to those aspects of the platform.
- DAA tokenization fees will be introduced in April, and the adjusted buyback system will take effect on July 1.