Russian Mining Giant Nornickel to Pay Dividends in Digital Assets
Russian metal mining company Nornickel has announced that it will pay its employees dividends in “digital financial assets” (DFAs). The company’s board of directors has approved a program that will provide employees with approximately $10.40 per share. In addition, Nornickel’s main shareholders have agreed to extend similar rewards to employees who hold its minetoken coin, which is backed by real-world metal assets.
Nornickel’s Pioneering Efforts in DFAs
Nornickel has been at the forefront of developing DFAs for several years, aiming to commercialize Russia’s first blockchain-powered digital commodities. The company received government permission and Central Bank approval to launch its offering in 2020. Last year, Nornickel created the Digital Investor program, which rewards employees who have worked for the company for over a year with two to ten tokens based on their tenure.
Expansion of DFA Dividend Payments
Nornickel began piloting DFA dividend payments in various offices last year, and over 51,000 staff members have already received minetoken payments. Employees in the Murmansk region, Transbaikal, and Krasnoyarsk territories are set to receive coins by the end of January.
Vladimir Potanin’s Vision for People’s Capitalism
Vladimir Potanin, President of Nornickel, sees the DFA program as a form of “people’s capitalism.” He aims to rectify historical injustices by returning 25% of Nornickel’s shares to the people, including employees. Potanin believes that providing dividends in DFAs is a way to empower employees and give them a stake in the company’s success.
Legislation to Encourage DFA Adoption
While few Russian firms have ventured into the DFA space, lawmakers are preparing legislation to enable others to follow Nornickel’s lead. In October 2023, a top lawmaker proposed scrapping foreign buying caps for the digital ruble and future Russian DFAs. This move indicates the government’s willingness to support and encourage the use of digital assets in various sectors of the economy.
Hot Take: Nornickel’s DFA Dividends Signal Growing Acceptance of Digital Assets
Nornickel’s decision to pay dividends in digital assets reflects a growing acceptance of blockchain-powered tokens in traditional industries. By incentivizing employees with DFAs, Nornickel is not only embracing innovation but also giving its workforce a direct stake in the company’s performance. This move could inspire other companies to explore similar initiatives, fostering greater adoption of digital assets in various sectors. As Russia prepares legislation to facilitate DFA usage, we can expect more businesses to follow suit, further integrating cryptocurrencies into mainstream financial systems.
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