Revenue Participation Tokens: Earning from Business Profits

The Revenue Participation Token is a two-token system that uses one participation token and two payouts.

What is a revenue participation token?

It was found that the idea of investing is to productively preserve or increased your own personal and economic assets over time. Almost always, investing is done in cash, with the help of a small part of one’s money, either in the stock market or in precious metals such as gold. 

Holding cash today is not only holding cash, but also constantly lose money due to inflation, which has now risen as it is in every country in the world. Along with the fact that cash cannot rise in value quickly, investing in stocks or riskier assets is one of the most effective options for long-term growth. 

However, the stock market is not a predictable game, it cannot be predicted, and it is easy to make mistakes. Because of this, blockchain technology has been providing savvy investor with options for several years. This is also a new option for hedging in the form of tokenization. 

One way to use tokenization for investing could be a revenue-sharing token, where companies can tokenize ownership of a percentage of their future earnings and sell those tokens to investors for immediate liquidity.

In the current moment, there is no legal framework for tokenization of asset ownership (or in this case, income from it). In most jurisdictions, this is true in most countries. Additionally, the ownership of a share of an asset comes with certain limitations on the right and obligations of the token-holder.

An alternative to direct income taxation and all the possible problems that it can bring about, as an alternative to directly paying money through payments, the Revenue Share model is made up of the well-established Usufruct legal Usufruct model, with one participate token and two different payment methods.  

The percentage of future profits of companies with strong income (or at least in the same industry) is recommended to be exchanged by tokenizing. In order to purchase this product, investors buy this product and then can decide to keep the token and later redeem it for that percent of income, or sell it further. In the company, it is like a gift certificate that entitles the owner to some kind of value in that company. 

When you pay out that percentage of income, it will be distributed as a second token that can be exchanged for fiat or cryptocurrency or sold on an exchange. This gives companies and investors much more flexibility than the traditional use of stocks or dividends.

You can buy a participation token in the revenue of a stable and reliable industry, such as agribusiness. And you can be absolutely certain about the expected return on your investment. It’s not gold, but it’s a non-speculative and safe investment. It can act as a hedge against inflation or negative interest rates, with multiple exit options while supporting meaningful companies.

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