On-chain Fund Phase-2
Tokenize the Funds
Tokenizing funds involves creating a blockchain-based representation of the pooled or managed funds. This is done by issuing tokens that represent ownership or shares of the underlying assets.
Key Features:
Ownership Representation: Tokens represent proportional ownership of the pooled funds.
Liquidity: Tokenized funds can be traded or transferred, making them more accessible.
Automation: Smart contracts manage the token issuance, transfers, and other related processes.
Steps Involved:
Fund Ready for Tokenization: Once the target amount is reached, or the fund is considered complete based on predefined conditions, it is marked as ready for tokenization.
Execute Tokenization: The Fund Manager triggers the tokenization process via the platform’s Tokenizer Module. The module executes the process by interacting with the blockchain.
Chain Selection: Depending on the blockchain selected by the Fund Manager, the tokenization process proceeds as follows:
BNB Chain: The platform uses the ERC20 Token Factory to create ERC20 tokens representing shares in the fund.
Solana: The platform uses the TOKEN Program 2022 to create Solana-compliant tokens representing shares in the fund.
Minting Tokens: The selected smart contract mints the required number of tokens. These tokens are sent to the Fund Manager Wallet and the Token Treasury for distribution.
Token Distribution: Investors receive tokens representing their share in the fund. These tokens can be:
Held as proof of ownership.
Traded on supported exchanges or platforms.
Redeemed for their share of the underlying assets, depending on the fund’s terms.
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