Revenue Share Tokens

Revenue Share Tokens: A Hybrid Debt-Ownership Instrument

The world of asset investment is undergoing a groundbreaking evolution, and Equiteez is at the forefront with our innovative Revenue Share Tokens (RSTs)—a clever hybrid of bonds and partnership investments. A RST operates similarly to a bond but with characteristics of a General Partner / Limited Partner (GP/LP) structure. This token provides the cash flow and underlying principle value rights while alleviating the regulatory complexity of equity securities.

Designed as compliant RWA bond securities, where the underlying asset owes money to token holders, RSTs open up economic opportunities to a broader audience, not just accredited investors. They help redefine how asset ownership and wealth creation are accessed, making these opportunities available to many previously excluded.

How Do Revenue Share Tokens (RSTs) Work?

RSTs combine the structural elements of bonds and characteristics of the General Partner/Limited Partner (GP/LP) and are designed to provide investors with the rights to the underlying asset’s cash flows, capital appreciation, and a portion of profits, but without equity ownership or claims that would trigger equity law concerns. Thus, they are available for all retail and institutional investors. This means every investor can participate in premium investment opportunities that were traditionally reserved for the ultra-wealthy or large institutional investors.

What Makes Revenue Share Tokens Special?

Let's break down the key features that make RSTs such a powerful investment tool:

• Regular Monthly Income: Just like receiving rent from a property you own, RST holders get monthly distributions based on the asset's performance. These payments come directly from the net operational cash flow – after all the necessary expenses and management fees have been handled. It's like having a slice of a professionally managed investment that pays you every month.

• Potential for Value Growth: When the underlying asset grows in value and is eventually sold, you get your share of that growth. It's similar to selling an investment property for a profit but without the headaches of managing real estate. Your RSTs automatically give you the right to your portion of the sales proceeds.

• Built for the Digital Age: We've built RSTs on the cutting-edge MRC-30 token standard on the Mavryk blockchain. It guarantees complete security, seamless transactions, and easy buying and selling of your investment. Plus, you can own just a fraction of a token – making it possible to invest with whatever amount you're comfortable with.

• Protecting Your Interests: If 66% of RST holders agree that the asset manager isn't performing well enough, they can vote to make a change.

Fact: The MRC-30 standard enforces strict KYC and AML compliance, blocking transfers between sanctioned or blacklisted individuals/entities to ensure adherence to regulatory requirements and prevent illicit activities.

Why RSTs Matter for Your Investment Future

The traditional investment world often feels like an exclusive club with a "minimum $1 million to enter" sign at the door. RSTs change this completely. Whether you're interested in luxury real estate, corporate bonds, or other high-value assets, RSTs make it possible to:

• Start investing in smaller amounts

• Earn regular monthly income

• Participate in asset value growth

• Trade your investment when you want

• Enjoy professional asset management

The Smart Legal Design

We've carefully structured RSTs as debt instruments rather than direct equity. This means we’re dramatically simplifying the regulatory requirements while maintaining all the economic benefits you'd expect from property ownership.

You get the economic benefits of being a limited partner but with the simplicity of holding a bond-like instrument. This structure eliminates many of the complex legal requirements that traditionally come with equity ownership, such as:

• No complicated equity ownership rules

• Monthly reconciliation reports to regulators tracking all equity holder changes

• Complex partnership agreements and operating documents

• Annual investor qualification verifications

• Detailed equity holder record-keeping requirements

• Multiple layers of legal documentation for transferring ownership

• Extensive regulatory filings for each equity holder change

• Clear rights to income and appreciation

• Simple, transparent reporting

• Easy transfer of ownership

Real-World Application

To understand better, we follow Sarah's investment journey as an illustrative example of how RSTs work in practice.

Sarah is a 35-year-old software engineer who invested $50,000 in RSTs connected to The Sapphire, a luxurious beachfront hotel offering breathtaking views of the Indian Ocean in Seychelles.

Her investment journey perfectly illustrates the power and accessibility of RSTs:

In 2020 Sarah invested $50,000 in RSTs, thereby securing a 0.05% ownership stake in a $100 million premium hospitality property – an opportunity that would have been out of reach through traditional investment vehicles.

• Monthly Income Streams: The Sapphire generated $7 million in annual income through its successful hotel operations. Sarah received monthly distributions of approximately $291.67 ($3,500 annually), providing her with a steady passive income stream. These distributions were automatically handled through the MRC-30 token standard, requiring no active management on her part.

• Value Appreciation: When the building was sold in 2024 for $125 million – representing a 25% appreciation over four years – Sarah's RSTs entitled her to a proportional share of the profits. Her 0.05% stake resulted in a one-time payment of $62,500, generating a profit of $12,500 from the appreciation alone.

Over the four years, Sarah earned a total return of $26,500, representing a 53% return on her initial investment

• $14,000 in total rental income distributions ($3,500 × 4 years)

• $12,500 from property appreciation

What makes RSTs particularly powerful is that Sarah achieved these returns without dealing with any of the traditional complexities of real estate investment. She didn't need to be an accredited investor, deal with property management, or navigate complex partnership agreements. The RST structure handled everything automatically, from monthly distributions to the final sale proceeds.

Through RSTs, Sarah gained access to investment opportunities that were previously reserved for wealthy individuals and institutional investors. By breaking down traditional barriers to entry in luxury real estate investment, RSTs are helping everyday investors like Sarah build diversified portfolios and work toward their long-term financial goals.

Join the Future of Investment

RSTs represent more than just another investment product – they're part of our mission at Equiteez to democratize access to premium investment opportunities. They combine the best of traditional finance with modern technology to create something truly accessible and powerful.

RSTs offer you the steady income potential of bonds combined with the upside potential of being a limited partner – but without all the complicated legal requirements that typically come with equity ownership.

Ready to explore RST investments? Visit our marketplace to see current offerings and take your first step into the future of asset investment. You can start small, diversify across different assets, and build your portfolio of income-generating investments at your own pace.

Remember: Like all investments, RSTs carry risks and past performance doesn't guarantee future results. Always do your own research and consider your investment goals before making any investment decisions