What Are Tokens?

Tokens are digital assets that exist on a blockchain. They represent a wide range of assets and functionalities, from currency to ownership stakes in real-world assets (aka “RWAs”), like Mineral Vault’s oil & gas property interests traded on the Plume Network. Tokens are crucial for enabling various activities and transactions within blockchain ecosystems.

Types of Tokens:

• Security Tokens: These tokens represent ownership in an asset, such as stocks, bonds, or real estate. Security tokens provide investors with rights and obligations similar to traditional securities.  This is the kind of token Mineral Vault issues.

• Utility Tokens: These tokens provide access to a specific service or product within a blockchain ecosystem. For example, they might be used to pay for transaction fees, access a platform’s features, or participate in decentralized applications (dApps).

• Governance Tokens: These tokens grant holders the right to participate in the decision-making processes of a blockchain project or decentralized organization. Holders can vote on proposals, changes to the protocol, and other important matters.

• Stablecoins: These are tokens designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency (e.g., USD) or a basket of goods. Stablecoins provide the benefits of blockchain transactions without the price volatility of other cryptocurrencies.

How Are Tokens Used by Mineral Vault?

Mineral Vault issues security tokens, with each token representing an ownership (equity) share in the company holding financial interest in the associated oil & gas properties. The tokens entitle the holder to a proportional share of the dividend distributions of the business, which occur on a monthly basis.  There are several benefits of tokenization:

• Global liquidity: Tokens can be easily bought, sold, or transferred between parties in numerous countries of the world, providing liquidity and accessibility to these traditionally illiquid assets.

• Lower minimum investment: Tokens are designed to be relatively inexpensive and therefore create a lower threshold for investment than most other investment opportunities in real estate sectors, especially mineral interests.

• Transparency: All token transactions are recorded on the Plume Network blockchain, ensuring a transparent and immutable record of ownership and transfers.

• Simplified dividend disbursement: Holders of Mineral Vault tokens will receive dividends of royalty income directly through the blockchain as stablecoin transfers, streamlining the distribution process.

In summary, tokens are versatile digital assets that play a crucial role in the blockchain ecosystem. For Mineral Vault, they enable the efficient and transparent management of tokenized interest in mineral properties, offering new opportunities for investors worldwide.