The token holders - Revision history

Moratoc at 09:53, 1 October 2023

2023-10-01T09:53:50Z

← Older revision		Revision as of 09:53, 1 October 2023
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	== ~~Some brief~~ notes on tokens ==		== Brief notes on tokens ==
	The token holders are the owners of tokens, which can briefly be described as computer files created within a Distributed Ledger Technology (DLT) network and recorded in a common database.		The token holders are the owners of tokens, which can briefly be described as computer files created within a Distributed Ledger Technology (DLT) network and recorded in a common database.

	Having posited this first, essential definition, it is believed that the substantive and legal nature of tokens is more readily understood where it is defined by moving from a number of distinctions.		Having posited this first, essential definition, it is believed that the substantive and legal nature of tokens is more readily understood where it is defined by moving from a number of distinctions.

	First, tokens are distinguished, on the basis of the function to which they are preordained, into:		First, tokens are distinguished on the basis of the function to which they are preordained, into:

	* tokens representing cryptocurrencies, with no embedded rights or liabilities;		* tokens representing cryptocurrencies, with no embedded rights or liabilities;
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	However, according to some scholars, this tripartition has a purely indicative value, because it is important to better consider the complexity realty of tokens, thus proceeding with a case-by-case analysis, in order to make a correct classification.		However, according to some scholars, this tripartition has a purely indicative value, because it is important to better consider the complexity realty of tokens, thus proceeding with a case-by-case analysis, in order to make a correct classification.

	Second, based on the issuing procedure, tokens are distinguished according to whether they are:		Second, based on the issuing procedure, tokens are distinguished according to whether they are issued in one slot or minted by a defined entity and offered through an ICO ([[Initial Coin Offerings (ICOs): legal issues according to Italian law\|Initial Coin Offering]]) or an IEO (Initial Exchange Offering).

	* issued in one slot;
	* minted by a defined entity and offered through an ICO ([[Initial Coin Offerings (ICOs): legal issues according to Italian law\|Initial Coin Offering]]) or an IEO (Initial Exchange Offering).

	== Brief notes on security tokens ==		== Brief notes on security tokens ==
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	They can obtain governance or non-governance tokens (for further details see “[[DAO Governance\|DAO governance]]”), so their rights, which derive from the tokens themselves, can vary.		They can obtain governance or non-governance tokens (for further details see “[[DAO Governance\|DAO governance]]”), so their rights, which derive from the tokens themselves, can vary.

	In general, DAO’s tokens grant:		In general, DAO’s tokens grant patrimonial rights, which imply a return on investment. In this sense, there are two possible type of benefit: (1) the token owner can receive different types of benefits, such as discounts, additional token or cash; (2) the owner can resell its token and thus obtain additional amount of cryptoassets.

	patrimonial rights:

	* return on investment ~~- in~~ this sense there are to possible type of benefit: (1) the token owner can receive different types of benefits, such as discounts, additional token or cash; (2) the owner can resell its token and thus obtain additional amount of cryptoassets;

	~~administrative rights:~~

	* right to public proposals on the shared platform, both in relation to new transactions and, for example, in order to change the DAO's organizational rules;		Moreover, they grant administrative rights, which imply a right to public proposals on the shared platform, both in relation to new transactions and, for example, in order to change the DAO's organizational rules; together with voting rights.
	* voting rights.

	== References ==		== References ==

Moratoc at 16:17, 23 August 2023

2023-08-23T16:17:30Z

Moratoc: Created page with "== Some brief notes on tokens == The token holders are the owners of tokens, which can briefly be described as computer files created within a Distributed Ledger Technology (D..."

2023-07-07T17:08:23Z

Created page with "== Some brief notes on tokens == The token holders are the owners of tokens, which can briefly be described as computer files created within a Distributed Ledger Technology (D..."

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== Some brief notes on tokens ==
The token holders are the owners of tokens, which can briefly be described as computer files created within a Distributed Ledger Technology (DLT) network and recorded in a common database.

Having posited this first, essential definition, it is believed that the substantive and legal nature of tokens is more readily understood where it is defined by moving from a number of distinctions.

First, tokens are distinguished, on the basis of the function to which they are preordained, into:

* tokens representing '''cryptocurrencies''', with no embedded rights or liabilities;
* '''payment tokens''', which are intended to replicate the functions of currency, maintaining a fixed value and representing the liabilities of the issuer. They include stablecoins, tokens issued by central banks (being tested) and non-convertible tokens;
* '''utility tokens''', which are non-tradable and incorporate only administrative rights or user licenses. These include Non Fungible Tokens (NFTs), which represent ownership rights to unique (non-fungible) physical or digital assets;
* '''asset or security tokens''' (investment tokens). These, in particular, are negotiable and transferable, representing entrepreneurial projects, or physical and financial assets that give the holder property and administrative rights.

The tripartition into payment tokens, utility tokens and security tokens has been officially proposed by FINMA (Swiss Market Supervisory Authority) in the “''[https://www.finma.ch/en/~/media/finma/dokumente/dokumentencenter/myfinma/1bewilligung/fintech/wegleitung-ico.pdf Practical Guide to Initial Coin Offerings]''” published on Feb. 16, 2018.

The same was later reiterated by the EBA ([https://www.eba.europa.eu/about-us European Banking Authority]) in “''[https://www.eba.europa.eu/sites/default/documents/files/documents/10180/2545547/67493daa-85a8-4429-aa91-e9a5ed880684/EBA%20Report%20on%20crypto%20assets.pdf?retry=1 Report with advice for the European Commission on crypto-assets]''”, published on Jan. 9, 2019.

However, according to some scholars, this tripartition has a purely indicative value, because it is important to better consider the complexity realty of tokens, thus proceeding with a case-by-case analysis, in order to make a correct classification.

Second, based on the issuing procedure, tokens are distinguished according to whether they are:

* issued in one slot;
* minted by a defined entity and offered through an ICO (Initial Coin Offering) or an IEO (Initial Exchange Offering).

== Brief notes on security tokens ==
Security tokens can, in turn, be distinguished into:

* digitally native security tokens: programmable financial instruments, created as smart contracts residing on a DLT, which can form the basis of, e.g., so-called "Distributed autonomous organizations" (DAOs);
* purely synthetic security tokens;
* security tokens originated by traditional financial entities.

== The token holders in a decentralized autonomous organization ==
Those who have conferred crypto assets to a decentralized autonomous organization (DAO), thus receiving security tokens in turn, become members of the organization.

They can obtain governance or non-governance tokens (for further details see “[[DAO governance]]”), so their rights, which derive from the tokens themselves, can vary.

In general, DAO’s tokens grant:

'''patrimonial rights''':

* return on investment - in this sense there are to possible type of benefit: (1) the token owner can receive different types of benefits, such as discounts, additional token or cash; (2) the owner can resell its token and thus obtain additional amount of cryptoassets;

'''administrative rights''':

* right to public proposals on the shared platform, both in relation to new transactions and, for example, in order to change the DAO's organizational rules;
* voting rights.

== References ==

* G. Farina, Blockchain'','' DLT'','' ''valute virtuali, cripto-attività: la disintermediazione finanziaria'', in ''Diritto dell’innovazione'', edited by A. Blandini, Cedam, Milano, 2022, p. 449.
* P. Hacker, ''Corporate Governance for Complex Cryptocurrencies ? A framework for Stability and Decision Making in Blockchain-Based Organizations'', in ''Regulating Blockchain. Techno-Social and Legal Challenges,'' edited by P. Hacker, I. Lianos, G. Dimitropoulos, and S. Eich, Oxford University Press, 2019, p. 32.
* R. Piselli, ''Quando la decentralizzazione delle DLT incontra il mercato dei capitali. Appunti sulle organizzazioni decentralizzate'', in ''AGE'', 2019, pp. 373 ss.
* C. Santana, L. Albareda, ''Blockchain and the emergence of Decentralized Autonomous Organizations (DAOs): An integrative model and research agenda'', in ''Technological Forecasting & Social Change'', 2022, p. 5.
* A. Stanescu & T. Velea, SLV Legal, ''The emergence of DAOs: From legal structuring to dispute resolution'', in ''Blockchain & Cryptocurrency Regulation 2023'', Fifth Edition, Global Legal Insight, 2023, pp. 206-207.

← Older revision		Revision as of 16:17, 23 August 2023
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	First, tokens are distinguished, on the basis of the function to which they are preordained, into:		First, tokens are distinguished, on the basis of the function to which they are preordained, into:

	* tokens representing ~~'''~~cryptocurrencies~~'''~~, with no embedded rights or liabilities;		* tokens representing cryptocurrencies, with no embedded rights or liabilities;
	* ~~'''~~payment tokens~~'''~~, which are intended to replicate the functions of currency, maintaining a fixed value and representing the liabilities of the issuer. They include stablecoins, tokens issued by central banks (being tested) and non-convertible tokens;		* payment tokens, which are intended to replicate the functions of currency, maintaining a fixed value and representing the liabilities of the issuer. They include stablecoins, tokens issued by central banks (being tested) and non-convertible tokens;
	* ~~'''~~utility tokens~~'''~~, which are non-tradable and incorporate only administrative rights or user licenses. These include Non Fungible Tokens (NFTs), which represent ownership rights to unique (non-fungible) physical or digital assets;		* utility tokens, which are non-tradable and incorporate only administrative rights or user licenses. These include Non Fungible Tokens (NFTs), which represent ownership rights to unique (non-fungible) physical or digital assets;
	* ~~'''~~asset or security tokens~~'''~~ (investment tokens). These, in particular, are negotiable and transferable, representing entrepreneurial projects, or physical and financial assets that give the holder property and administrative rights.		* asset or security tokens (investment tokens). These, in particular, are negotiable and transferable, representing entrepreneurial projects, or physical and financial assets that give the holder property and administrative rights.

	The tripartition into payment tokens, utility tokens and security tokens has been officially proposed by FINMA (Swiss Market Supervisory Authority) in the “''[https://www.finma.ch/en/~/media/finma/dokumente/dokumentencenter/myfinma/1bewilligung/fintech/wegleitung-ico.pdf Practical Guide to Initial Coin Offerings]''” published on Feb. 16, 2018.		The tripartition into payment tokens, utility tokens and security tokens has been officially proposed by FINMA (Swiss Market Supervisory Authority) in the “''[https://www.finma.ch/en/~/media/finma/dokumente/dokumentencenter/myfinma/1bewilligung/fintech/wegleitung-ico.pdf Practical Guide to Initial Coin Offerings]''” published on Feb. 16, 2018.
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	* issued in one slot;		* issued in one slot;
	* minted by a defined entity and offered through an ICO (Initial Coin Offering) or an IEO (Initial Exchange Offering).		* minted by a defined entity and offered through an ICO ([[Initial Coin Offerings (ICOs): legal issues according to Italian law\|Initial Coin Offering]]) or an IEO (Initial Exchange Offering).

	== Brief notes on security tokens ==		== Brief notes on security tokens ==
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	Those who have conferred crypto assets to a decentralized autonomous organization (DAO), thus receiving security tokens in turn, become members of the organization.		Those who have conferred crypto assets to a decentralized autonomous organization (DAO), thus receiving security tokens in turn, become members of the organization.

	They can obtain governance or non-governance tokens (for further details see “[[DAO governance]]”), so their rights, which derive from the tokens themselves, can vary.		They can obtain governance or non-governance tokens (for further details see “[[DAO Governance\|DAO governance]]”), so their rights, which derive from the tokens themselves, can vary.

	In general, DAO’s tokens grant:		In general, DAO’s tokens grant:

	~~'''~~patrimonial rights~~'''~~:		patrimonial rights:

	* return on investment - in this sense there are to possible type of benefit: (1) the token owner can receive different types of benefits, such as discounts, additional token or cash; (2) the owner can resell its token and thus obtain additional amount of cryptoassets;		* return on investment - in this sense there are to possible type of benefit: (1) the token owner can receive different types of benefits, such as discounts, additional token or cash; (2) the owner can resell its token and thus obtain additional amount of cryptoassets;

	~~'''~~administrative rights~~'''~~:		administrative rights:

	* right to public proposals on the shared platform, both in relation to new transactions and, for example, in order to change the DAO's organizational rules;		* right to public proposals on the shared platform, both in relation to new transactions and, for example, in order to change the DAO's organizational rules;
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	* C. Santana, L. Albareda, ''Blockchain and the emergence of Decentralized Autonomous Organizations (DAOs): An integrative model and research agenda'', in ''Technological Forecasting & Social Change'', 2022, p. 5.		* C. Santana, L. Albareda, ''Blockchain and the emergence of Decentralized Autonomous Organizations (DAOs): An integrative model and research agenda'', in ''Technological Forecasting & Social Change'', 2022, p. 5.
	* A. Stanescu & T. Velea, SLV Legal, ''The emergence of DAOs: From legal structuring to dispute resolution'', in ''Blockchain & Cryptocurrency Regulation 2023'', Fifth Edition, Global Legal Insight, 2023, pp. 206-207.		* A. Stanescu & T. Velea, SLV Legal, ''The emergence of DAOs: From legal structuring to dispute resolution'', in ''Blockchain & Cryptocurrency Regulation 2023'', Fifth Edition, Global Legal Insight, 2023, pp. 206-207.

			[[Category:MUSA Tech4Fin_Milestone_1]]
			[[Category:MUSA DOLaw]]