Creating the ideal business equity token

Let’s say you have a new business and would like to raise/crowdfund money in this new crypto enabled era.

I’ll skip the paper. Here is a theoretical token / business / blockchain system to accommodate…


Token limit: Only x tokens issued, ever. The token is essentially a private/public key combo for a payout address linked to the smart contract I am about to describe.


Fixed IPO price: you set the price of the tokens and that price remains fixed until all tokens are sold.


The two features above effectively let you the business owner define a valuation and target capital goal. Ex: you will issue 100 tokens at the price of $1,000 each to raise $100,000 in capital.


Blockchain bookkeeping: the business has a ledger consisting of public addresses. Ie: one for revenue and one for expenses, all of the businesses transaction flow happens through these even if a given transaction was entirely fiat (ie: bought a hammer at hardware store, paid cash) the funds still flow in or out through these addresses to maintain immutable, public accountability.


Smart contract powered proportional profit share: each token receives a recurring revenue stream from the business in proportion to the terms of the IPO. Ie: in this case there were 100 tokens issued, so each token shall receive 1% of all profit. If you have 25 tokens, you receive 25% (payout is once per month let’s say).

And these two features above maintain the integrity of the token long-term. An immutable ledger of transactions makes fraud difficult and the smart contract ensures token holders receive their payout automatically, indefinitely.

Thoughts? Has it been done? I am eager to hear your feedback, constructive criticisms, or links to similar systems already live.

Secondly, I would like to know if counterparty is the best platform to accommodate such a system and finally the specifics on how you might go about implementing it.

(cross-posted from r/counterparty; seems there is a bit more activity here)