Brokerbot

We believe any company should have the possibility to fund itself easily and directly, on its own website, through the sale of its shares.

We believe anyone should be able to purchase shares of any company they like, directly from the company’s website, instantly through a few clicks.

That’s why we created Brokerbot:

Background

Today, only 230 out of more than 500’000 Swiss companies are publicly traded on the stock market. We believe many more could and should be traded – thanks to our Brokerbot. We have the legal, technical, and economic ideas to create liquid markets for thousands of additional Swiss companies, potentially unlocking billions in dormant economic value.

Since February 1st, 2021, Swiss DLT (Distributed Ledger Technology) Law enables the introduction of ledger-based securities that are represented on a blockchain. Aktionariat AG has been at the forefront of the new frontiers offered by this fresh legal framework since day one: we’ve been selling our own shares using Brokerbot immediately after the new legislation took effect.

Economics rationale

Our Brokerbot and the smart contract behind it are tailored towards the needs of issuers of equity and backed by scientific research.

Having a Brokerbot reduces price uncertainty and increases liquidity, which in turn makes a company’s shares increase in value. Damodaran (2005) empirically estimates this effect to be at least 25%, even more for smaller firms.

Innovative technologies

Smart Contracts on distributed networks (Blockchain Technology) make it possible to create digital representations of physical objects and the peer-to-peer exchange of them. Brokerbot runs based on an innovative smart contract (our Market Contract), on the Ethereum blockchain, with each Brokerbot installation bound to a specific Ethereum Address.

Delivered as a web-based widget, Brokerbot makes the automated market-making of tokenized equity possible on any website.

Key features

Shares are meant to be transferable. Markets work best when they are free and open. We create transferability and transparency for private equity markets by leveraging the latest legal and technical developments. By tokenizing your equity and allowing it to be freely traded you can expect the following benefits:

Straightforward price mechanism

Open source, transparent pricing model – but under your control.

Brokerbot runs on a smart contract. Both the source code and the actual contract a given Brokerbot is running on are all open source, freely and openly accessible, on the blockchain, safe from alterations. The Brokerbot that you see on this page and our Investor Relations page, for instance, is on 0x142b70be2c6cf57caf49833013408040b12ab920.

A bonding curve – under your control.

The smart contract establishes a linear relationship between the (net) number of shares sold and the current price. The price mechanism of the Brokerbot operates on simple parameters which the company running it can easily configure in our Corporate Dashboard:

  • (initial) price
  • increment per share bought (equal to decrement per share sold)
  • time based automatic price drift
  • time interval for the drift
Brokerbot parameters in the dashboard

For the Brokerbot on our own Investor Relations page, for instance, drift and interval are currently set to 0. Initial price was set to 4, increment to 0.00002. As we tokenized of our shares, and already sold of them through Brokerbot, the current price of is entirely deterministic. (The numbers in this paragraph are automatically the latest values thanks to our widgets, incidentally.)

Reduced Price Uncertainty

Founders, employees and investors benefit as their tokenized shares gain a tangible and predictable value.

Liquidity Premium

Investors are likely to pay a higher price per share when there is a reliable market price and an option to liquidate their positions. Damodaran (2005) empirically estimates this effect to be at least 25%, even more for smaller firms.

More potential investors

Less uncertainty allows to create appeal to new types of less adventurous investors. Smaller ticket sizes lower the entry level for smaller investors. Ease of use allows anyone to purchase shares, even if not familiar with stock exchanges.

How to use Brokerbot

For companies

To enable the market a company places a certain amount of tokenized treasury shares in the Brokerbot or more specifically transfers them to the Brokerbot’s Smart Contract Ethereum address. Investors can acquire security tokens as long as there are some left in the Brokerbot. Once all the tokens are sold a company can decide to not sell shares anymore or transfer more treasury shares as security tokens to their Brokerbot’s Smart Contract Ethereum Address.

Note that for every share sold the currency reserve of a company increases and on the other hand for every share sold back to the issuing company the currency reserve decreases by the same amount. The price increment as well as the share price itself can be set in our Corporate Dashboard and can be adjusted anytime. Company administrators can always withdraw the generated currency reserves to invest them into the growth of their business. It depends on the company’s strategy what part of the acquired reserves are left in the Brokerbot to be able to buy back shares from investors.

For investors (anyone with a crypto-wallet!)

Our Brokerbot currently allows to buy shares by paying either with CryptoFrancs (XCHF), which is a stablecoin, or with Ether, the official currency of the Ethereum network.

To buy tokenized shares an investor has to connect an Ethereum wallet with the Brokerbot. A detailed explanation on how to buy shares can be found on How to buy Aktionariat Shares.

Screenshots

  • screenshot of Brokerbot widget
  • Brokerbot Buy screen screenshot
  • Brokerbot Sell screen screenshot

Create a market for your shares

Brokerbot is an easy to configure web-based widget based on a smart contract for the automated market-making of tokenized equity.

Brokerbot works best in conjuction with our other services: together with its companion widgets, our tokenization services, our mobile apps, and all the other tools we offer, Brokerbot allows you to create a market for your shares easily and quickly.

See (and use!) our Brokerbot and its companion widgets in action on our Investor Relations page, or...

Contact us to get your own!