Tokenizing Business Assets like cashflow: Has Anyone Tried This?

The way that this works is that a business can "exchange" dollars for tokens on the platform using pre-tax dollars. The tokens can be used to purchase goods and services from an increasing number of participants on the platform covering everything from compute power to business software we already use, to more traditional things like insurance. Or, I could take a loan out against those tokens, to convert them to cash, which is viewed as a non-taxable event. And the beautiful part is that the tokens continue to accrue value (similar to how cash value whole life policies/ infinite banking works).

And perhaps even more interestingly, my understanding is that I could also sell tokens from the platform to friends/ family or anyone, and then use those proceeds to purchase a business in tokens or USD. Then, could pay out a portion of the cashflow to those individuals using a new kind of smart contract to ensure everyone is paid autonomously and correctly. Then those individuals could take loans against their distribution of tokens (tax free).....while the value of their tokens also continues to appreciate. And, since tokens are not viewed by the SEC as a security, it would give non-accredited investors access to higher yield investments.

So, in addition to accomplishing my goal, the crazy cool part is that purchase of these tokens is viewed as an expense vs. CAPEX. Thus, they show up under OPEX on the P&L, lowering or potentially eliminating the taxable income of the business (similar to use of IP and Business trusts). What I'm not clear on is whether you would funnel 100% of income through this structure or only 30-50% which is fairly standard for IP/ business trust structures.

Anyhow, thought I'd share this. I think I'll probably run some of our cashflow through this network when it's live and will report back on what I learn for those who are interested.

Original Post:

Hi All,

I’m exploring the idea of acquiring a business by tokenizing it and selling 50-60% of the equity in the form of digital tokens to raise the acquisition funds. The concept involves issuing tokens that represent ownership shares in the business and distributing quarterly cash flow payments to token holders based on their proportional ownership.

This approach could open access to higher-return investments for a broader audience, potentially including non-accredited investors, while offering liquidity and transparency through blockchain technology.

I’d love to hear from anyone in this group who has explored or implemented something similar.

1. Have you used tokenization in acquisitions or fundraising? 2. What were the major risks or unknowns? 3. Did the costs and complexity outweigh the benefits? 4. Has anyone put together a fund using this type of structure?

Why I’m Interested in This Model: This idea aligns with my interest in making high yield, passive income more accessible to non-accredited investors (primarily friends/ family and those who need to catch up for retirement), and also simplifies fundraising if I can build a model once and then redeploy it as much as needed to acquire more assets, while leveraging technology to reduce complexity and enhance transparency. However, I’m still in the early stages of exploring feasibility.