Product Representing Ownership of Equity

The complexity of issuing even the simplest instrument representing ownership of equity or right is unaddressed on blockchains.

The simplest security in the real world is an equity stock, yet the complexity of issuing such a simple instrument is greatly underappreciated.

While minting a fungible token on a blockchain to represent ownership of an equity or right is intuitive, it lacks tangible connection to what is being represented. It is critical for serious investment decisions on blockchains to be based on the real meaning carried by digitally transferrable tokens.

Ink Finance solves this problem by encompassing such critical information in a high-level construct, the InkEnvelope, and providing tools to handle, process, and interpret these envelopes. A singleton product (or security) can now have the necessary information associated with it, provided that it is issued with tools from INK’s Products Module.

The following illustration describes how an equity-like product carrying off-chain information can be issued by a DAO.