Revenue Participation model

​​for Investing with Blockchain

Tokenization is a promising new method for creating investment opportunities, particularly for smaller projects that are typically priced out of common investment vehicles like stocks. 

The problem: Tokenizing the ownership of an asset currently lacks the proper legal framework necessary in most jurisdictions. Additionally, owning a fraction of an asset comes with certain obstacles to the rights and obligations of the token holder.

The solution: Offer investments only into a company’s (or asset’s) revenue, instead of selling parts of the company itself. In the investment sector, this type of investment is known as a profit participation certificate. In legal terms, this model is known as “usufruct.”

With the tools provided by CoreLedger, this solution can be applied to any business case where revenue is created over time. Companies issue a “Participation Token” which grants the holder the right to a percentage of future profit. That profit is then paid out to the investor via a “Payout Token.” Both of these tokens can be sold on exchanges. Let’s take a look at this solution in more detail.

1. DIGITALIZE REVENUE AND MINT TOKENS

  • Create, describe and document tokens​.
  • Mint, or burn, as many units as you need, whenever you need.
  • Create a whitelist, and combine it with your KYC process.
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2. SELL THE PARTICIPATION TOKENS​

  • Offer it on one of our partner's primary markets, a third party market, or even sell it under your own brand.
  • List it on an exchange and make it tradeable​.

3. DISTRIBUTE THE PROFIT VIA PAYOUT TOKENS​

  • Distribute the revenue/profit directly to the investor's wallet App.
  • Add functionality to your payout tokens, e.g. use them as payment for additional services​.

4. REDEEM OR SELL THE PAYOUT

  • Investors can exchange or redeem their tokens.
  • Tokens are sent back to the issuer, and can be burned or re-used.
  • The payout in fiat currency is done via bank transfer, Bitcoin, or your method of choice.

YOUR ADVANTAGES​

Open any investment asset to the whole world through tokenization

Fractionalization without any ownership transfer of the asset

Low cost-to-market thanks to ready-to-use white label applications

Easily administrate multiple small investments with cost effective payouts

USE CASES

Tokenize the profits from commercial buildingssupermarketsappartments, or anything else that can be rented out. 

Farms, Orchards, and Ranches, are ideal use-cases for Revenue Participation thanks to their consistency and community value. 

Industries that continuously produce things of value for a community are ideal for this investment model. Factories, power plants, windmills, and mines can all easily make use of Revenue Participation.