The Token tab displays all the important information associated with the blockchain-based token representing the Asset as well as a respective transaction history. This is the case when the Asset tokenization is done on Stellar.
Custody Asset Attributes:
- Protocol states the blockchain protocol used for the Asset.
- Network states the network the protocol is assigned to and can be testnet or mainnet.
- Asset is the Asset code and Stellar address of the Token.
- Funding Account is the account from which Stellar network and account setup fees are paid.
- Issuing Account is the account from which Tokens are minted.
- Distribution Account is the account where Tokens are initially sent to at the minting step.
Transaction History shows all events associated with the token.
Tokens on a blockchain are created through a process that is call minting. Tokens can represent physical objects or financial assets. As all Token transactions are recorded on the blockchain, there is an immutable transaction history of Token ownership.
There are two basic minting approaches. Firstly, Tokens can be pre-minted independently of the Offering progress, i.e. a fixed amount of tokens is created.
Secondly, Tokens can be minted based on incoming orders throughout the offering progresses. This can be done multiple times during the Offering or once at the end of an Offering. In the case of Stellar, the minting process is initiated via the Token tab of the Offering Manager, for EVM chains this is done via Create Token in the Token Tool.
Corporate actions can affect shares or bonds outstanding, denomination of bonds and shares as well as ownership structure. Many, but not all corporate actions impact security tokens. The most important ones are
- Capital increase or decrease: results in a higher or smaller number of total token supply
- Stock split or reverse split: results in a higher or smaller number of total token supply
- Share buyback: results in a smaller number of total token supply
- Dividends: if paid on-chain this results in stable coins (or other digital assets such as cryptocurrencies) being sent on chain to token holders
- Rights issues: results in a higher number of total token supply
- Mergers and acquisitions: depending on the terms of the transaction shareholders might (have to) swap shares for shares of another company or vice versa, this could result in token clawbacks
- Spin-offs: results in a higher or smaller number of total token supply and potentially newly created tokens that are offered to shareholders for sale
Most corporate actions require either minting or burning of tokens.
Additional tokens on Stellar can be minted directly from within the Offering Manager. Simply edit the Total Number of Tokens field in the Asset tab and then clock MINT again on the Token tab. When you want to burn tokens on Stellar, you can simply send them back to the issuer account.
In Token Tool go to Manage Token from where you can mint additional and burn tokens.
After minting, Tokens can be transferred to Investor wallets based on the Investor's individual Order volume. The flow of this process is based on the selected Custody setup and blockchain for the Offering.
Token Distribution on Stellar
In the case of Tokens on Stellar, the distribution process is initiated via the Token tab of the Offering Manager.
Investor wallet addresses are assigned via an integration with the third-party custodian mandated for the Offering. When clicking "Distribute", Tokens are transferred to the assigned wallet addresses based on the respective Order volumes of the investors.
Alternatively, the issuer may want a setup that does not involve a custodian and will ask investors to do self-custody. While this setup is technically possible and has been implemented in combination with the Offering Manager before, it is not recommended. Usually this creates many technical customer support requests and creates a higher risk of loss for token holders.
Token Distribution on EVM chains