In the crypto world, equity got a special place and peoples are eager to know and create it, mainly the business peeps. That is because, the equity has the characteristic to withheld and represent the share of a company or an asset.
And how is that, what all equity token does, those things are clearly explained in this blog by the best Ethereum token generator, TheTokenLauncher.
What is an Equity Token?
Equity Token is a type of token which is widely used to claim to ownership or to showcase their authority over an asset. It is just like other financial instrument and similar to the traditional way but equity tokens have documents in virtual forms like digital certificates, proof of transaction whereas the traditional way has physical book certificate.
Either form contains the same contractual information and since the equity token is decentralized its data are encrypted and stored in blocks, where the holders have rights to take action with it.
The equity token don’t alone uphold the share or authority over the asset, it also gives the voting power over it. The only difference between the equity token and the traditional way is, the usage of methodology virtual and physical as said earlier.
Types of Equity Token
Equity tokens are of two types, they are,
- Dilutable Token
- Non-Dilutable Token
Benefits of Equity Token
As said before the equity token is an aid to get authority over the asset or share via blockchain. That is the difference between the tradition and equity token is the usage of blockchain. Here is the list of benefits can be attained by the usage of equity token,
- Voting power
- Asset safety
- Profit share rights
- Buyback rights
- Automated dividends
- Cash flow
- And much more
Functionality of Equity Token
The function of the equity token is very simple, it can hold authority over the share or property in the percentage base and also can gain the authority to vote to select the solu authority person or for any other purpose.
When a person holds a 10% authority over a share and gain 1 vote alongside. It means that the out of 100 the person holds 10% and also 1 vote to decide or make any decision in the discussion over the share benefit.
As you have already known well about the equity token, now create your own equity token for your personal or professional use from the best Ethereum token builder in the global market. And TheTokenLauncher is the best result for that, because it is one of the supreme ERC20 token builder for any sort of Ethereum based token creation from wherever in the world.
And also can built other tokens like fun token, asset-backed cryptocurrency as well as Fund token, ICO, etc.