The Tokenization Process
Last updated
Last updated
Subnet owners lock a portion of their future alpha_out emissions into a smart contract, minting SNS tokens that represent fractional ownership of these cash flows.
These tokens are then offered to investors via Taofu’s permissioned launchpad, providing subnet owners with upfront capital. Investors, in turn, receive a token representing their share of the subnet’s future alpha_out emissions, not dissimilar to 'common stock' in traditional finance. They can trade these tokens on secondary markets (DEXs).
This process provides subnet owners the opportunity to over time liquidate their SNS in order to generate profit.