Defining the Token Type

The type of token issued determines investor rights, financial benefits, and regulatory treatment. The token type must align with the underlying asset’s economic model and legal structure to ensure compliance and investor clarity.

Common Token Types

Equity Tokens

  • Represent ownership in a company or asset, granting voting rights, profit participation, and capital appreciation.

  • Suitable for business equity tokenization where investors hold fractional ownership in a company or project.

Example: A real estate development company tokenizes 40% of its shares to raise funds for expansion, granting investors equity ownership and dividend rights.

Debt Tokens

  • Function as digital bonds or structured loans, where token holders receive fixed or variable interest payments over time.

  • Suitable for tokenized debt instruments, corporate bonds, or secured loans.

Example: A hotel developer issues tokenized bonds with a 7% fixed annual yield backed by property rental income.

Revenue-Sharing Tokens

  • Investors receive a share of generated revenue from an underlying asset, without direct ownership.

  • Suitable for businesses that prefer revenue participation over equity dilution.

Example: A tokenized film investment offers investors 5% of all future box office revenue as a return.

Participation Tokens

  • Provide economic exposure to an asset’s performance, without granting direct ownership rights.

  • Ideal for projects where regulatory restrictions limit tokenized equity sales.

Example: A tokenized gold mining project provides token holders with proportional profit participation from extracted resources.

Asset-Backed Tokens

  • Backed by real-world physical assets such as real estate, commodities, luxury goods, or infrastructure.

  • Provide investors with fractional ownership of tangible assets while maintaining liquidity through tokenized trading.

Example: A high-value luxury watch collection is tokenized, allowing investors to own shares in appreciating collectibles.

Commodity Tokens

  • Represent ownership, trading rights, or economic interest in a specific commodity such as gold, silver, oil, or agricultural products.

  • Can be structured as either fully-backed physical commodities or futures-based instruments.

Example: A gold refinery issues 1:1-backed gold tokens, allowing investors to redeem their tokens for physical gold or trade them on a DEX.

Data-Rich Security Tokens

  • Security tokens can be enhanced with real-time data using Stobox Oracle, enabling automated reporting of:

    • Asset performance

    • Cash flow updates

    • Valuation changes

  • Data-rich tokens improve transparency and investor confidence.

Example: A tokenized rental property automatically updates investors on occupancy rates, rental income, and maintenance costs via smart contracts.

Why This Step Matters

  • Defines legal and financial rights of token holders.

  • Determines compliance obligations based on securities classification.

  • Ensures investor transparency with data-rich token standards.

  • Optimizes liquidity and secondary market trading possibilities.

By selecting the right token type, issuers create a secure, legally compliant investment structure that meets regulatory and investor expectations while ensuring liquidity and growth potential.

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