Polish law struggles to keep pace with technology for selling future income

Polish law is lagging behind technological advancements, creating hurdles for innovative financial models, according to legal expert Jacek Joniak. He uses the example of a tennis player aiming to sell future sponsorship income to fans as a way to fund their career and enhance fan engagement.

Joniak explains that while traditional companies can issue stock on the stock market, which is heavily regulated, individuals face a legal vacuum when attempting similar transactions. The concept involves selling tokens representing a share of future earnings, allowing fans to invest in an athlete's success and potentially profit from it. This model, he argues, could be creatively adapted by various businesses.

The article delves into the mechanics of tokens and smart contracts, explaining how they function within a distributed ledger technology. A token is defined as a digital representation of value or rights, transferable and stored electronically. Smart contracts, embedded in the ledger, can automate agreements and the distribution of assets, such as automatically converting future earnings into digital currency for token holders.

This technological framework offers a way to manage future income streams with greater transparency and automation. However, Joniak points out that Polish legislation, including the new MiCA regulation for crypto-assets, is still catching up to these innovations. The current legal landscape is not adequately equipped to handle the complexities and potential of these new financial instruments, leaving a gap that needs to be addressed.