Updated: Jan 13, 2020
Spencer Dinwiddie will get to tokenize his contract after all.
As reported by CoinDesk, Dinwiddie announced last year that he would tokenize his three-year, $34.5 million contract on the ethereum blockchain, looking to raise $13.5 million for the first year. Essentially, he would raise his contract’s value as an upfront lump sum, with token holders receiving payouts throughout the season.
In September, the NBA tried to say that Dinwiddie’s plan was barred under the collective bargaining agreement under which NBA players operate. However, according to Forbes, the specific point of contention was the potential for Dinwiddie to execute an option on the third year of his contract, promising “significant dividends for investors” if he indeed opted out and signed a higher-paying contract.
Again, according to CoinDesk, Dinwiddie told Forbes that removing this clause and offering a flat bond instead would allow the plan to proceed. Accredited investors will be able to purchase tokens for a minimum $150,000 buy-in, giving him his contract’s value up front.
Paxos Trust Company will provide escrow services and facilitate payouts to token holders using its dollar-pegged PAX stablecoin. Securitize CEO Carlos Domingo said on Twitter Friday that his firm would act as the transfer agent and technology partner for the project.
The Dinwiddie Bond will launch January 13th.