Revenue Participation Tokens

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Revenue Participation Tokens

What is Revenue Participation Tokens

A revenue participation token system uses two tokens: one for participation and one for reward. Companies can tokenize the ownership rights to a portion of their future profits using revenue-share tokens, and then sell those tokens to investors to raise cash right away. However, there is a drawback to this.

In the majority of jurisdictions, tokenizing the ownership of an asset (or in this example, its earnings) does not currently have the appropriate legal foundation. The rights and obligations of the token holder are further limited by the fact that they only control a portion of the asset.

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