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  • Welcome to Stobox
  • Stobox Company
    • Overview
      • Key Tokenization Trends
      • Tokenization Market Challenges in 2025
      • Stobox’s Mission and Business Objectives
      • Business Model Framework
      • Market Demand & Business Cases
      • Compliance & Security
      • Advantages
      • Values
      • Social Impact
    • Stobox Assets
      • Stobox Token (STBU)
      • Stobox Security Token (STBX)
    • Investor Relations
  • PRODUCTS
    • Stobox 4
      • Introduction
      • Stobox 4 Platform Roadmap 2025
      • Key Features
        • Wallet Management
          • Understanding MPC-CMP
          • Multi-Device Security
          • Multi-Blockchain Support
          • Full Private Key Takeover 🔥
          • Supported Assets
        • Blockchain dApps Connectivity
        • Compliance and Regulatory Framework
        • Asset Tokenization Module
        • Tokenization AI Framework
        • Roles and User Management System
        • Financial Operations, Integration, and Settlement Mechanics
        • Trust, Transparency, and Audits
      • Integrations
        • Blockchains
        • Protocols
        • Assets
    • Stobox V3
      • DS Dashboard V3
      • DS Swap
      • STV2 Stobox Protocol
        • Roles
        • Limits
        • Mint, Burn and Treasury Management
        • Lock-Ups
        • Contract Governance
    • STV3 Stobox Protocol
    • Stobox DID
    • Stobox Oracle
  • ENTERPRISE
    • Stobox API
    • Stobox 4 Whitelabel
  • TURN-KEY SERVICES
    • Stobox 3 Tokenization Suite
      • FAQ
  • CONCEPTS
    • Tokenization of Time
      • Introduction
      • Exploring the Benefits of Time Tokenization
      • Mechanism of Time Tokenization
      • Liquidity in Professional Services
      • Global Impact and Solutions to Systemic Issues
      • Time-Backed Securities and Investment Funds
    • The Power of Single Ledger Settlement
      • Chapter 1: Introduction to Single Ledger Settlement: Understanding the Basics
      • Chapter 2: Tokenization: The Digital Transformation of Assets
      • Chapter 3: How Single Ledger Settlement Works
      • Chapter 4: Revolutionizing the Auto Dealership Industry
      • Chapter 5: Supply Chain and Logistics – Enhancing Transparency and Efficiency
      • Chapter 6: Tokenization in Real Estate – Simplifying Transactions and Ownership
      • Chapter 7: Healthcare – Streamlining Patient Data and Payments
      • Chapter 8: Smart Contracts – Automating and Simplifying Business Processes
      • Chapter 9: Digital Payments – The New Era of Instant, Transparent Transactions
      • Chapter 10: Tokenization and Payroll – A New Frontier in Employee Compensation
      • Chapter 11: Reducing Costs with Single Ledger Settlement
      • Chapter 12: Legal Implications and Compliance
      • Chapter 13: Overcoming Challenges in Adopting Single Ledger Settlement
      • Chapter 14: Case Studies – Real-World Applications of Single Ledger Settlement
      • Chapter 15: The Future of Business Operations – A Unified Ledger for the Global Economy
  • DeFi
    • Staking Program
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On this page
  • Types of Yield Structures
  • Fixed Yield (Guaranteed Returns)
  • Target Yield (Performance-Based Returns)
  • Growth-Oriented (No Regular Yield, Capital Appreciation Only)
  • Hybrid Yield (Fixed + Performance-Based Returns)
  • No Immediate Yield (Future-Projections-Based Yield)
  • Dynamic Yield (DeFi-Based Returns)
  • Why This Step Matters

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  1. DeFi
  2. Deprecated
  3. Tokenization Wizard
  4. Jurisdiction & Legal Entity Formation

Defining Token Yield

The yield structure of a token defines how investors receive returns on their investment. The right yield model depends on the business model, asset type, investor expectations, and regulatory considerations. Token issuers must balance investor incentives with financial sustainability while ensuring compliance with securities laws.


Types of Yield Structures

Fixed Yield (Guaranteed Returns)

  • Token holders receive a predetermined, fixed return (e.g., 5% annual yield).

  • Provides stability and predictability, making it attractive for conservative investors.

  • Often used in debt tokens, structured financial instruments, and revenue-sharing models.

Example: A tokenized real estate project issues debt-backed tokens that guarantee a 6% annual yield paid from rental income.

Target Yield (Performance-Based Returns)

  • Returns are not guaranteed but are targeted based on the asset’s financial performance.

  • Common in profit-sharing, revenue-linked, or equity-based token models.

  • Provides flexibility while aligning investor returns with business success.

Example: A tokenized business shares 30% of its annual net profit with investors, targeting a 10-15% return, depending on company performance.

Growth-Oriented (No Regular Yield, Capital Appreciation Only)

  • Tokens do not generate periodic payouts but are structured for capital appreciation.

  • Best suited for high-growth investments, equity tokens, and appreciating assets.

  • Investors profit through increased token value over time.

Example: A startup tokenizes equity shares, with investors benefiting from the company’s increased valuation at a future exit event.

Hybrid Yield (Fixed + Performance-Based Returns)

  • Combines fixed yield (stable payouts) with target yield (performance-driven bonuses).

  • Offers a balanced approach, attracting both conservative and high-return investors.

  • Suitable for hybrid financial instruments, diversified funds, or real estate-backed tokens.

Example: A tokenized energy project provides a 5% guaranteed return, plus profit-sharing based on electricity sales.

No Immediate Yield (Future-Projections-Based Yield)

  • No current yield is paid, but projections indicate future income streams.

  • Common in early-stage projects, development-phase assets, or long-term investments.

  • Encourages speculative investors seeking high future returns.

Example: A tokenized land development project issues tokens today, but revenue will begin once construction is completed in 3 years.

Dynamic Yield (DeFi-Based Returns)

  • Yield is determined by decentralized finance (DeFi) mechanisms, such as:

    • Liquidity pools

    • Staking rewards

    • Yield farming protocols

  • Returns are variable, adjusting based on demand, supply, and platform participation.

Example: Token holders stake their security tokens in a regulated DeFi liquidity pool to earn variable APY rewards.


Why This Step Matters

  • Attracts the right investor audience by aligning return expectations with risk profiles.

  • Defines regulatory compliance—fixed yields may classify tokens as debt instruments.

  • Optimizes investor retention and liquidity, ensuring long-term engagement.

  • Aligns business and financial strategy with real-world asset performance.


By selecting the right yield structure, issuers create financially sustainable, investor-friendly tokenized offerings that comply with securities regulations and provide long-term value.


Last updated 1 month ago

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