YouNow users may earn the platoforms tokens by creating content on the app. YouNow, the New York-based startup, will disperse millions of Props, an ERC-20 token that runs on the ethereum blockchain, to users of its app, allocated on their status level.
Even though the platform will not sell the tokens, the team behind the platoform, has filed a Reg-A+ offering circular for its Props token with the Securities and Exchange Commission, effectively asking for permisson.
If approved by the regulator, the qualification would clear YouNow to distribute Props to content creators, network transaction validators and others without registering the tokens as securities.
Previously, YouNow raised $25 million through the sale of Props, $20 million of that via a simple agreement for future tokens (SAFT), a legal structure devised at the height of the 2017 initial coin offering (ICO) boom.
Props is backed by Union Square Ventures, Comcast Ventures, and Venrock. YouNow plans on giving away tokens as grants to programmers on the platform and to popular users.