Technology blockchain is gaining more and more popularity, and it has often been heard recently that it is also used in sport. Spencer Dinwiddie, basketball player Brooklyn Nets, but he came up with a completely new solution - he decided stokenizować your own contract. However, this idea did not appeal National Basketball Association (NBA).
The concept of tokenization of Dinwiddie contracts
The source of financing would be STO Security Token Offering. The website would provide fans with the opportunity to participate in the athlete's career, that is to say - a kind of investment in his talent.
Blockchain tokenization Ethereum he would be subject to a basketball player's contract with Brooklyn Nets, thanks to which he would gain better financial opportunities.
Token SD8 represents the participation in the 3 year-long athlete contract for the amount of 34,5 million dollars. dividends for athletes they would come from Dinwiddie's salary, which is a certain solution because the contract guarantees him income for a year.
Whole idea tokenization of sports contracts proposed by Dinwiddie boils down to the purchase of a token and payment of the top fee for it.
After the contract has expired, the investor receives a return on his investment plus interest.
Paxos Trust Company is the operator of Dinwiddie's idea
To implement its plan, Dinwiddie has partnered with a trust company Paxos Trust Companywho recently turned to blockchain technology.
It offers comprehensive service in the area of deposits and dividend payments to investors.
Also check: The Binance Exchange - a beginner's guide
NBA does not agree to tokenization of Dinwiddie's contract
Although the idea of the basketball player caused a great stir, the NBA did not finally give permission to stokenize the athlete's contract.
In an official announcement, the League's board recognized Dinwiddie's plan as a violation of the collective labor agreement.
According to it, players are not entitled to transfer earnings resulting from being a team member to third parties.
In addition, the basketball player would also need to obtain permission to be able to implement his tokenization plan National Basketball Players' Union (NBPA).