A wave of tokens is arriving and they’ve been already disrupting the financial and trading world. BnkToTheFuture, a Global Online Investment Platform, has raised over $300 million over 3 years, invested in over 100 notable blockchain organizations, including Kraken, ShapeShift, and BitFinex; and has launched a blockchain exchange for security tokens. STO exchange is a new market, emerged in the first quarter of 2019 but it seems to be clear that soon, the tokenization will greatly impact the fundraising and securities exchange markets. domino.vote takes part in the revolution by providing Security Token Issuers with its remote voting technology that helps enterprises, associations, and NGOs to securely & legitimately cast their votes online. But what exactly are security tokens and tokenization?
What are security tokens?
Security tokens are issued as Security Token Offerings (STOs). They allow real-world assets, such as votes, stocks or cryptocurrencies, to be transformed into digital tokens and this process is called tokenization. In contrast to utility tokens that are not allowed to include financial rewards, security tokens are asset-backed and allow holders to directly participate in the financial development of the company value. For example, a token issuer can make crypto payments to the token holder. What makes security tokens innovative is a crypto sphere’s way of making financial claims on the blockchain. STOs have an advantage over Initial Public Offerings (IPOs) as they have a digital form which significantly reduces the costs — there is no need for middlemen like banks that manage the IPO process. The same advantage is clear in shareholder registry management and voting. For example, 90% of Swiss companies are SMEs in need of managing their shareholder registry at lower costs. According to the research done by domino.vote, a typical direct cost of an SME shareholder assembly of 40 people may stand at CHF 5’000 and even 20’000 if counting all the economic costs.
What if 1 billion people held tokens?
We believe that tokens not only have the potential to disrupt the financial world, but also fundraising, securities exchange markets, and simpler processes, such as memberships, properties, rights, and many others.
In the world where 1 billion people hold tokens, they can become a tool for identity proof or give the right to membership in an association.
- said Zurab Sanikidze, domino.vote’s Founding Partner and Business Developer. International organizations, such as NGOs or IGOs, can use tokens to achieve undeniable and undisputed trust among their stakeholders as voting is one of their means towards broader inclusion. Blockchain online voting helps them to significantly reduce operational costs. With domino.vote, the governance of tokenized assets can be held remotely, anytime, from any place, using a mobile app. Votes are chained together like a game of dominoes and voters can browse the whole immutable ballot box with the exception of making it impossible to link a voter to a vote. Tokens also give a proof that only authorized voters took part in the poll. All the processes are cryptographically secured and placed under voters’ remote supervision, which makes domino.vote a user-centric governance technology. domino.vote is getting ready to be the voice of token democracy.
Written by Monika Ambrozowicz