The way it works right now - if you own stock "A" the stock sits in your brokerage account.
Now if another person wants to short stock "A" your brokerage will lend the stock to them for 5-8% a year in interest payments.
Your brokerage makes 5-8% per year by lending out YOUR stock. You receive NOTHING!
Tzero has implemented something called DLR on the FLO blockchain.
What DLR's do is allow YOU to control who you lend your stock to and at what rate. OR you can give permission to a brokerage to allow them to lend it out to short sellers while splitting the profits with you.
This is HUGE. For the first time ever, stock owners will actually be able to earn 5-8% passive income by lending out their own stock to shortsellers. This is disrupting billions of dollars in profit that banks and brokerages make every year.
Can you imagine. Pension funds strive to preserve money. 2-4% gain per year is excellent for their standards.
Imagine how they will get giant FLOners and FLOrections if they could get 5-8% a year in risk free profit! They can lend their billions in stocks to short sellers and make free profit!
This will kill brokerages, banks, and firms like Robinhood who prey on stock buyers and rob their own customers of their rightfully deserved interest payments.
All of this is on the FLO blockchain!
Patrick Byrne (CEO of Overstock/Tzero) has said that pension funds are lining up to sign up for FLO DLR usage.
A quick google search shows that pension funds worldwide have over $40trillion usd. What better way to get passive and risk free profit than to lend out your stocks. These DLR on FLO blockchain are a perfect way for pension funds to increase their returns.
Byrne stated that the funds are in the process of being on boarded. Ready to lend by March.
FLO is valued at under $3million marketcap.
This thing will soar like EMERALD COBRA
beyond $100million when people find out. Straight to mars.
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