Revenue Rights


Revenue Rights

6 min read

Revenue Rights

Revenue or profit rights entitle its token holders to a specified portion of the network fees received. The concept of revenue rights is similar to stock dividends, though revenue rights doesn't necessarily imply voting rights.

Advantages: It's simpler to conceptualize the value of the token based on the revenue payouts and revenue rights. There is also a clear correlation between the growth of the network and the growth of the token's value.

Disadvantages: Such a token design may incentivize a community of investors while not necessarily furthering the engagement of the token community. In addition, implementing revenue rights require stricter regulatory guidance that comply with securities laws.

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