Spencer Dinwiddie triumphs with contract tokenization
Spencer Dinwiddie, NBA star for the Brooklyn Nets, will begin issuing tokens tied to his contract this month.
The launch comes months after the NBA pushed back on his original plan to create a tokenization platform for entertainers to issue instruments to fans based on future earnings.
We reported last September Dinwiddie's plan to tokenize his three-year, $34.5 million contract on the ethereum blockchain, intending to raise $13.5 million for the first year.
Token holders receiving payouts throughout the season.
The NBA's past objection was based on the NBA collective bargaining agreement under which NBA players operate and appeared to be (according to the New York Times) the clause in that agreement reading:
no player shall assign or otherwise transfer to any third party his right to receive compensation from the team under his uniform player contract
Mr Dinwiddie took the view that the sale of tokens was not an assignment or transfer of his right to receive compensation.
Mr Dinwiddie has since removed a clause promising "significant dividends for investors" and is now offering a flat bond instead which appears to have satisfied the NBA. Accredited investors (broadly analogous to sophisticated investors in Australia) will be able to purchase tokens for a minimum $150,000 purchase.
Paxos Trust Company is providing escrow services and processing the payouts to token holders using its dollar-pegged PAX stablecoin. Securitize CEO Carlos Domingo said on Twitter that his firm would act as the transfer agent and technology partner for the project.
the guy that almost got kicked out of the league trying to do some fun stuff with his contract