Jul 01, 2020
Algorand has been selected as the blockchain infrastructure layer for the Republic Note, an innovative profit-sharing token that will be offered to both accredited and retail investors starting July 16. Algorand was chosen for its innovative proof-of-stake design, which allows Republic to fulfill the demands of a regulated security token that trades freely among potentially millions of investors.
A first of its kind innovation as a profit-sharing token, the Republic Note pays holders when startups and private equities that are funded through certain Republic investment platforms are acquired or go public. Payment will be made in the form of a stablecoin, and is proportional to the amount held by the investor. The Republic Note also offers investor perks, including investment vouchers, waitlist priorities, and other platform benefits.
For its profit-sharing token, Republic needed a blockchain layer that allowed for large volumes of small distributions to many people. Algorand’s low transaction cost and high throughput made it the best option for this new asset class. In addition, Algorand allows for permissions as well as the tracking of ownership, crucial for the issuance and management of digital securities. With over a thousand transactions per second, immediate transaction finality, and minuscule transaction fees, Algorand is seeing continued adoption as the platform of choice for DeFi applications and those looking to bridge from the traditional financial world to DeFi.
Beyond technical ability, Republic’s goal of using technology to bring the best investment opportunities to everyone, regardless of their wealth and access, aligns with Algorand’s mission of inclusivity where anyone can participate in the new economy. As a next-generation proof-of-stake blockchain, Algorand is honored to have been chosen as a partner for Republic and excited to help power this new frontier in investing.
Global private equity net asset value has grown 7.5X since 2002, more than double the public markets in that time. But more than 92% of US households are locked out of these private investments, which are essential vehicles for wealth creation, due to archaic and elitist rules. Now, the Republic Note offers everyone access to these private markets.
The Republic Note is backed by some of the most prominent investors such as Binance, Passport Capital, the Algorand Foundation, Blockchain Ventures, ZhenFund and FBG Capital. Republic Core has pre-sold over $12 million in token purchases from strategic institutional investors.
Republic has over 700,000 members and has funded projects ranging from early-stage startups like Delee and Teooh to established brands like Robinhood and Carta. Its investors have deployed over $120,000,000 into 200 companies, sometimes who are backed by leading VCs like Andreessen Horowitz, Union Square Ventures, Sequoia Capital, and many others. Republic conducts intense due diligence before investing and has launched crowdfunding campaigns for fewer than 1% of companies seeking to use its crowdfunding platform.