Can you mix dividend and utility tokens?

I’m working on a project with a dividend-paying token. You hold the token and you get some of the company’s profits.

But, what happens when we also introduce elements to make the coin more scarce? So a token would have the following properties:

• Token pays a percent of profits
• Token also has a utility value (i.e., stake for discounts)

The questions I’d like to answer are:

• How can we model the likely market value of such a token?
• Will this result in two groups who value the token differently?

The value based on the dividend

The first value of the token is the fact that it pays dividends. The yield is the annual dividend over the price, which gets you a percentage return on investment based on the current price of the token. So if a token costs 1 ETH, and pays .4 ETH per year, the yield is 40%.

If the price rises much faster than the dividend, the yield will fall. Even if your dividend amount remains at .1 ETH per quarter, the value of the token itself has grown so the percentage return falls.

As price increases, yield decreases

This yield percentage will drive investors toward or away a token, probably to their nearest competitor. Other factors that would affect the price would include:

• Expected dividend growth rate
• Perception of risk / chance of failure

Estimated valuation for dividend paying token

Assuming a competitor had the same risk profile, income investors would drive the price of our token to where the yield would equal that of our nearest competitor. We could reasonably expect income investors price equilibrium to be where these two lines cross.

The price of our token would be a function of yield and the yield of competition

Value based on scarcity and utility

The utility token works like this:

There is a fixed or falling number of tokens and the number of people who want to use the tokens for a purpose is expected to rise over time.

So what will happen if this pressure exists in the graph above? As the price increases due to token use, it will drive the income-investors to our competitor. But if the utility pressures outweighed the dividend pressures, the price level would find an equilibrium elsewhere

Conclusion

The market equilibrium price for a dividend-paying token would settle somewhere based on a competitor’s yield. Use of the token could only have temporary and small effects on the price.

Alternatively, if the scarcity and use of the token drive the price very high, the dividend value will no longer have much of an effect on the value, as it is driven by use and price speculation.

It is based on this analysis that I do not believe there is any purpose to combining these two forces, and in fact the company underlying will be wasting profits to do so. Thoughts?