Investing in Personal Tokens

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Overview

You can invest in personal tokens through your personal token. This creates an interconnected network where everyone can invest in each other’s success, building diversified portfolios of human capital and potential.

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Investment Requirements

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Capital Requirements

To invest in another personal token, you must have:

• Sufficient USDC in your personal token wallet
• Enough capital to cover the full investment amount
• Active personal token (you must have created your own token first)

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Investment Process

All investments are made through your personal token, not as an individual. This means:

• Your personal token becomes a shareholder in the target token
• Any returns benefit your personal token (and thus your shareholders)
• Investment decisions become part of your token’s track record

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How to Profit from Investing

There are two main ways to generate returns from personal token investments:

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1. Dividends

Receive proportional capital gains when the token owner sells equity in assets.

Example:

• You own 5% of Jane’s personal token
• Jane sells company shares for $100,000 profit
• You receive $5,000 (5% of the capital gain)
• This dividend is distributed to your shareholders proportionally

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2. Capital Appreciation

Sell your shares to another investor at a higher price than you paid.

Example:

• You bought 10,000 shares at $2 each ($20,000 total)
• Token owner’s success increases demand for their shares
• You sell 5,000 shares at $4 each ($20,000 total)
• Your profit: $20,000 -$10,000 = $10,000 capital gain

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Investment Strategy

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Early vs. Proven Investments

Early-stage investments:

• Higher risk, higher potential return
• Bet on potential and future success
• Lower entry prices
• Greater upside if the person succeeds

Proven investments:

• Lower risk, steady returns
• Established track record
• Higher entry prices
• More predictable dividend flow

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Diversification Strategies

Portfolio approach:

• Invest in multiple personal tokens
• Different industries and backgrounds
• Various stages of career development
• Mix of high-risk and stable investments

Sector focus:

• Concentrate on specific industries
• Leverage your expertise and network
• Develop deep understanding of the space
• Benefit from sector trends

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Due Diligence

Before investing, consider:

• Track record - Past performance and achievements
• Network - Professional relationships and influence
• Portfolio - Current assets and investments
• Strategy - Future plans and vision
• Reputation - Network standing and reporting history

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Investment Mechanics

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Accepting Investment Invitations

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Investment Limits

• Minimum investments - Set by the token owner
• Maximum investments - May be capped per investor
• Round limits - Total round size may restrict individual investments
• Wallet balance - Must have sufficient capital available

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Managing Your Investment Portfolio

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Tracking Performance

The Network provides tools to monitor:

• Total portfolio value - Current worth of all investments
• Individual token performance - Track each investment separately
• Dividend history - Record of all dividend payments received
• Capital gains - Profits from token sales

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Rebalancing Strategy

Consider periodic rebalancing to:

• Take profits from successful investments
• Double down on promising tokens
• Exit underperforming positions
• Maintain diversification across your portfolio

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Pro Rata Rights as an Investor

When you invest in a personal token, you receive pro rata rights for future rounds:

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Your Rights

• Right to participate in future fundraising rounds
• Maintain ownership percentage by investing proportionally
• 7-day advance notice of upcoming rounds
• Access to round information including terms and timeline

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Exercising Pro Rata

• Calculate your allocation - Percentage ownership × new shares available
• Decide participation level - Full, partial, or no participation
• Submit investment - Confirm your additional investment amount
• Automatic processing - Shares allocated proportionally

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Secondary Market Opportunities

Beyond initial investments, you can also:

• Buy shares from existing shareholders wanting to exit
• Sell shares to other investors at market prices
• Participate in secondary offerings when available
• Trade on Network marketplace (when implemented)

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Risk Management

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Understanding Risks

• Individual performance risk - Token owner may underperform
• Market risk - Overall Network conditions may decline
• Liquidity risk - May be difficult to sell shares quickly
• Concentration risk - Over-investment in single tokens

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Mitigation Strategies

• Diversify across multiple tokens - Don’t put all capital in one investment
• Invest amounts you can afford to lose - High-risk, high-reward nature
• Monitor performance regularly - Stay informed about your investments
• Set clear exit strategies - Know when to sell or hold

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Investment Psychology

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Long-term Perspective

• Career-spanning investments - People’s success unfolds over decades
• Compound growth - Early investments can yield exponential returns
• Relationship building - Investments create lasting business relationships
• Network effects - Your investment network becomes mutually supportive

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Emotional Considerations

• Avoid FOMO - Don’t chase hot tokens without due diligence
• Stay disciplined - Stick to your investment strategy
• Manage expectations - Success takes time to materialize
• Learn from failures - Use losses as learning opportunities

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Example Investment Scenario

Let’s walk through a complete investment example: