Tokenizing assets is a reality in the economy and the benefits of tokenization leave no doubt how strategic it is for all industries and business models. Therefore, understanding token distribution is critical.
But what does it mean to distribute tokens?
It is about making tokens available to the market, via the blockchain where the tokenization was developed and is hosted.
Once distributed, investors around the world can buy assets in tokens to receive future remuneration or invest in an asset with the potential to appreciate in value and realize a gain on resale.
The way to distribute tokenized assets will make all the difference in communicating with the target audience and in adhering to the market and governance strategies of the company that holds the assets.
For this reason, despite the high level of security, agility and transparency of the distributions that are made on the platforms of the tokenizing companies – the most common ones – many companies prefer to have more control over the process.
Does such an alternative exist?
Yes, and BLOCKBR, a web 3.0 native company, will show you the ways to offer tokens. One of them will certainly meet your company’s objectives.
WHAT ARE THE TYPES OF MARKETS FOR TOKEN OFFERINGS
PRIMARY TOKEN OFFERING MARKET
This is the commonly used token offering market, where the company offers the tokens to the general public, who must access the token sales platform (defined by the chosen distribution model), register, and purchase the tokens.
This method is also known as ICO – initial coin offering, as it is similar to the process used in traditional stock offerings through IPOs.
So here investors will be buying directly from asset holders and projects that have been tokenized directly or indirectly, as we will see below.
TaaS: Everything you need to know about token-as-a-service!
SECONDARY TOKEN OFFERING MARKET
This is the market between initial acquirers and the people to whom they can resell their tokens and takes place within the token exchanges’ platforms. It arises from demand from people who did not take advantage of the initial offering or from increased interest in the asset value associated with the token.
This business ecosystem is highly dynamic and beneficial to the visibility of the asset-holding company’s current and future projects, as it acts as a disseminator of the token’s profit potential and consequently the health of the business.
WHAT ARE THE STEPS IN THE TOKENIZATION PROCESS
The distribution of tokens is a key step and belongs to a process that starts much earlier, which may seem complex to many, but becomes simple if conducted by an experienced tokenizer.
Let’s talk about the step-by-step process for tokenizing assets from the marketplace distribution model.
1 – FEASIBILITY STUDY ON TOKENIZATION
After contacting the client to discuss the possibility of tokenizing their assets, rights or projects, BLOCKBR schedules a meeting to know all the details, such as:
- Items to be tokenized and their market, accounting and legal characteristics;
- Expected revenue from tokenization;
- Deadline for fundraising;
- Form of remuneration;
- Legal feasibility (for assets subject to regulation by CVM and other agencies).
Canall assets be tokenized?
It is possible to tokenize all kinds of assets and rights, but not everything is interesting to be tokenized. This is why the feasibility study is so important.
2 – TOKENIZATION STRUCTURING
This is the step where the main legal instruments of tokenization are built.
- Legal contract between customer and tokenizer;
- Financial contract.
3 – ISSUANCE OF TOKENS
Here the smart contracts are created to be used in the blockchain, which will be responsible for the:
- Approval of each trade with tokens by all computers in the network;
- Registration of transactions in encrypted data blocks, with absolute security and transparency;
- Managing the distribution of tokens, the payment of expected remunerations and settlement.
Everything is 100% electronic, with no human intervention after the distribution of the tokens.
4 – DISTRIBUTION OF TOKENS
In this step, tokens are made available in practice on a blockchain-enabled platform for investors to evaluate the conditions and invest. The distribution can be done in different ways.
Let’s talk about the tokenization methods that BLOCKBR makes available to its clients.
DISTRIBUTION OF TOKENS BY THE MARKETPLACE – RECEIVABLES
This is the best known and most used token distribution method in the market, where the whole process is conducted by the tokenization company, in this case BLOCKBR, from the feasibility study to making the tokenized assets available.
This is the model used in receivables tokens – those in which people invest knowing what the payoff will be – when and how much they will receive.
Marketplace distribution is widely used by businesses that:
- They want to become familiar with the token concept without a large internal investment to do so;
- They have no internal structure to support the distribution steps;
- There are no market issues that justify the residency of the process.
After distribution, the tokens will be available on the token exchange’s marketplace and can be purchased through the digital wallets of interested parties.
DISTRIBUTION OF TOKENS BY WHITELABEL
This method of distributing tokenized assets is ideal for companies that want a branded offering environment with no visual connection to the tokenizing company, even though the tokenizing company is the developer of the whole process.
In this way, the brand can exploit the image of greater synergy with innovation, conveying the idea that tokenization is a resident activity of the company and therefore entrenched in its market strategies.
The client can opt for the site itself or a customizable platform to make the distribution, and the process is developed by BLOCKBR.
DISTRIBUTION OF TOKENS BY TAAS – TOKEN-AS-A-SERVICE
The token-as-a-service (TaaS) is the latest innovation for the token market: BLOCKBR provides the technical services via API and the entire distribution task, including the vehicle, is left to the client.
Optionally, the customer can become a tokenizer, through a partnership with BLOCKBR for the transfer of know-how. In this way, it will be 100% independent and will transform tokenization into an internal operation, under its management.
It is an ideal model for large companies and corporations like Banco Itaú, which recently created its platform to issue, distribute, and trade tokens.
Which token distribution is best for your company?
This is a question that depends on a number of variables, which makes this decision absolutely unique. BLOCKBR operates with all and puts its expertise at the service of the best choice!
BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital assets, in the process of tokenizing assets.
The supply of physical assets and tokenized financial assets, both current and new, is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?