In this step, define how the token generates returns for investors or holders. The yield type refers to the method and conditions under which the token delivers economic value, whether through profit sharing, interest payments, staking rewards, or other mechanisms. Choosing the appropriate yield type helps clarify the financial structure of the offering and sets expectations for both investors and regulators. The yield may be fixed, variable, or conditional, depending on the business model and token design.
A fixed yield refers to an investment where the return or income generated is predetermined and remains constant over a specified period.
A variable yield refers to an investment where the return or income generated fluctuates over time, typically based on an underlying benchmark or market conditions.
No yield signifies an investment or asset that does not generate any income, interest, or dividends.
Token Yield Value (interest) refers to the amount of interest earned or expected from holding a crypto token over a specific period, usually expressed as a percentage return.
Selecting the right yield type is essential for aligning the token structure with your business model and investor expectations. It also ensures that payout mechanisms can be legally and technically executed in accordance with the promises made during the offering.
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