A Not for Profit Business Model
The stated purpose for Element Zero will be to utilize cryptocurrencies and other assets acquired from the public to provide support in the form of grants and other monetary donations to worthy organizations organized for charitable purposes with federal tax exemption under Section 501(c)(3) of the Internal Revenue Code. In other words, Element Zero is an aggregator organization that takes in assets, invests those assets, and donates profits to other 501c3 organizations with oversight.
As a not-for-profit, Element Zero will assign 100% of the revenue in the company’s reserve to support the liquidity of the stablecoin. At some point in the future, it is possible the ratio between the reserve and Exposure at default (EAD) will flip, creating a favorable scenario of more funds than obligations, which creates a net profit. If this occurs, Element Zero will distribute 100% of the net profits to non-profits organizations.
