Security tokens or how to slice a digital mango?

Les jetons de sécurité

Security is a strong word which conjurers up ideas of power, might and often oppression. It also leaves us thinking of an implied threat, so why mention it in a blog about digital mangos and community investment?

Well it is a bit of a misnomer really. Security in the sense it is meant in ‘security tokens’ comes from the American word ‘security’ which is equivalent in meaning to ‘asset’. So what this blog is actually about is tokens which represent assets.

Cut mango

As much as we believe that a world without ownership would be a great thing, our current society is a long long way from this Utopian vision. In order to facilitate our goal of accelerating the installation of photovoltaic systems we need a business model which is at once both sustainable and compatible with the existing economy. It is our belief that representing shares in photovoltaic installations as tokens on the Tezos blockchain is the most efficient and effective way to bring our product to market.

Here are some of the reasons that explain why we prefer this novel way of dividing assets, over using traditional paper share certificates:

  • Transparency, the nature of blockchain means that the process of issuing the tokens (and auditing the business that they represent) is entirely transparent.
  • There is more liquidity in the market for tokenised securities than can be found in local communities alone. To explain further; if there is not enough money available to fund the investment from the local community the rest of the money can be sought from people farther away, even from different countries.
  • The contract which handles the creation and transfer of the tokens is configured to prevent tokens being sold to parties which are ineligible to hold them.
  • Once investors have bought their security tokens, they are likely to be able to sell them more easily than if the pool of investors was a much smaller, locally procured, one.

Basically, think of a stock market listing, as is made for much larger scale investments. It will be possible, with security tokens, to offer financing rounds to different groups of investors. The process is very simple; during each round the investors, who have been invited to participate in the fundraising, log on to a payment portal and pay the amount they wish to invest with their bank card.

When we look back in years to come, that which seems new-fangled now will have become common-or-garden and we will wonder why we didn’t start planting digital mangos sooner!

To know more about Digital Mango or the staking/baking process, to invest in one of our projects or simply to join our team: Get in touch today!

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