Select Type of Tokens
Define the type of token to be issued, as it sets the legal status, investor rights, and regulatory duties. Choosing the right type ensures compliance, clear communication, and proper offering structure. The token can represent ownership, revenue rights, usage rights, or a mix of these.
Select the General Token Category
Security Tokens A regulated financial instrument representing an investment contract. This token type gives investors rights such as ownership, dividends, or repayment and is subject to securities laws in most jurisdictions.
Direct Ownership Rights Tokens [disabled] Represents legal ownership of the asset itself (e.g., real estate, fine art), not just a claim to value. This model may require special legal structuring to ensure that on-chain rights are enforceable off-chain.
Utility Tokens [disabled] Grants access to a product or service within a specific ecosystem but does not represent ownership or investment. Often used in early-stage or platform-based projects.
Hybrid Tokens [disabled] Combines elements of multiple token types (e.g., utility + profit-sharing). Requires careful legal structuring to define how rights are split and which regulations apply.
Select the Type of Security Token
Equity (Common Stock) Token Represents ownership in a company’s common equity with voting rights and growth potential.
Preferred Stock Token Non-voting equity with priority on dividends and liquidation; may offer fixed returns.
Convertible Equity Token Starts as a contract and converts into equity upon a future event, like a funding round.
Debt Token Represents a loan; investors are repaid with interest according to agreed terms.
Bond Token A structured debt instrument with fixed payments (coupons) and a maturity date.
Convertible Debt Token Begins as debt and may convert into equity or other securities based on conditions.
Asset-Backed Token Linked to real-world assets like real estate or loans, returns come from asset performance.
Commodity-Backed Token Backed by physical commodities (e.g., gold, oil); holders have claim to the commodity’s value.
Profit-Participation Token Gives investors a share of profits without requiring equity ownership.
Revenue-Sharing Token Provides investors with a percentage of the company's or project's revenue, regardless of profit.
Fund Unit Token Represents a share in an investment fund or portfolio; offers exposure to multiple assets.
Hybrid Token Combines features of equity, debt, and/or revenue-sharing; requires a clear definition of rights.
Sustainability-Linked Token Returns are tied to environmental, social, or governance (ESG) performance or specific sustainability goals.
Participation Certificate Token Offers rights to profit or revenue without voting rights or direct ownership; often used in civil law jurisdictions.
Was this helpful?