Revenue Share Tokens

Disrupting Dividends - The Case For Revenue Share Tokens (RSTs)

Bitcoin Dividends - The Best Of Both Worlds

Revenue Participation model by CoreLedger

Direct revenue from media products

Summary RVT

Revenue-sharing tokens confer their owners a right to a portion of revenues or fees generated on or by the host platform. This could refer to on-chain transactions-whenever the network performs an action, a small fee is extracted and ultimately distributed to token holders. It could also refer to off-chain transactions, related to a specific initiative or specific product. Such revenues can be distributed on-chain periodically, akin to on-chain dividends, or through a mechanism called buy-and-burn in which the proceeds are used to remove tokens from circulating supply to increase the perceived value of remaining tokens. While some tokens with revenue-sharing functions are thought by legal experts to be classified as securities via regulators, the term revenue-sharing token, unlike security token, is neutral on the legal question of whether the described token will be so classified.

Direct

Token Holders receive a share of the revenue from the tokenised asset, or receive revenue share directly from the company.

Revenue Share can be paid to the token holders in another crypto currency, or in another native token

Indirect

Burn - Using the Revenue Guides buys back Tokens from the market at market price and burns them, thus limiting supply driving up the price.

Buy form members & Burn - With the Revenue Share sum Guides buys back Tokens only from Token holders registered on Guides and burnt, thus preferring the community while limiting supply driving up the price.

Bid & Burn - Token holders have the option to cash in their Token via the open market, or exchange them through guides to a stable coin against a set price (based on available rev.share sum/total tokens?) (but not sure how this add up to any meaningful amount, probably a better way to set the price to 'buy' revenue (~ exchange it for USD stable coin or so).

  • A variant on the above is to allow Token Holders to bid for the Revenue Share. For example, say the market price of G$ is 1 usd; rev.share fund is 100.000, and during a set time window a Token holder wants to bid with 10.000 tokens, then each token would be worth 10$ (10x market prcie), but let's say another bidder enters with 90.000. Now the token is only worth 1USD, the same as on the market price.
  • A variant on the above is a model where a registered community member is only allowed to bid with an max % of his tokens, allowing more people to bid for the revenue.
  • Another variant is as above, but now the your highest exchange value you can get from the buyback price of the revenue share fund is capped at XX% of the market price. So say market price of G$ is 1 usd; rev.share fund is 100.000, Token holder has 100.000 tokens, and the capped buyback price is 150% of the market price, than if he is the only one he can bid with max 10.000 tokens for 1,5$= 15.000 leaving 85.000 in the fund which automatically moves to next year. If however more people bid with 10% of their tokens up to 66.666 tokens (equaling 100.000usd at $1,5) after which the % goes down to min equaling the market price). (Note: registered is important here to prevent people spreading tokens across different wallets).