Debt Token, Revenue Share, or Economic Participation: Which Structure Fits Your Project?
Apr 16, 2025
One of the most common questions developers ask when they first explore tokenization is: what kind of token should I issue? The answer depends entirely on your asset, your capital needs, and the kind of investor you want to attract.
Start with your asset and your need
If you have a project that's 80–90% complete and you need liquidity to finish and deliver, a Debt Token is likely your best fit. You're not offering upside — you're offering repayment. The investor receives capital plus a defined return, repaid from sales proceeds, refinancing, or collection flows. It's clean, it's fast to structure, and it attracts investors who want predictable returns over a defined horizon.
If you have an operating asset — a building generating rental income, a hospitality project, a commercial property — a Revenue Share Token makes more sense. Here, the investor participates in net distributable income: a percentage of rents, tourism revenue, or commercial fees, distributed periodically according to the issuance rules. The return is real and ongoing, and the structure aligns the investor's interests with the asset's performance.
If you have a development project where the big value event is at exit — a masterplan, a land appreciation play, a mixed-use development — an Economic Participation Token referenced to units, m², or valuation milestones gives investors exposure to the upside without requiring you to dilute equity or take on traditional debt.
Can you combine them?
Yes, and often that's the smartest approach. A hybrid structure might combine a Revenue Share Token with an economic participation component at exit, giving investors both periodic income and a share of the appreciation. The exact design depends on the asset, the jurisdiction, and the investor profile you're targeting.
What matters most in the decision
Three questions guide the structure: What is the primary source of repayment or return? What is the investor's expected holding period? And what level of legal protection and covenant structure do you need to make the offering credible to institutional capital? All in Token designs each structure case by case — there's no one-size-fits-all token.
The right structure isn't just a legal choice. It's a strategic one that determines what investors you attract, what your cost of capital is, and how your project's financing story is told to the market.