Guide on Post Tokenization Considerations: What You Need to Think About & Do After Your Token Goes Live

Guide on Post Tokenization Considerations: What You Need to Think About & Do After Your Token Goes Live

The launch of a Token is a complex undertaking that involves careful consideration of how you go about the launch. Successfully navigating the Tokenization process is just the beginning; after your token goes live, there are crucial considerations that issuers must address to ensure the continued success of their real-world assets token. Thankfully, Brickken can help streamline all of these processes, but let's take a look at what needs to be kept at the forefront of your mind after your RWA launch.

Post Tokenization Evaluation

After the launch of your Token, a thorough review and evaluation of the entire process can be helpful. This evaluation aims to identify the strengths, weaknesses, and areas for improvement in the token issuance journey. By carefully analyzing the token issuance strategy, marketing efforts, and regulatory compliance measures, you gain insights into the effectiveness of your approach.

Compliance & Regulatory Obligations

Ensuring continuous compliance with securities regulations is a critical aspect of managing a post tokenization ecosystem. You must remain vigilant and keep up-to-date with any changes in securities laws in the jurisdictions where your tokens are offered. This involves closely monitoring regulatory developments and promptly adapting to new requirements to maintain a legally compliant operation.

In addition to staying aware of regulatory changes, issuers must fulfill their reporting obligations to the relevant authorities. Regular financial reporting is essential to provide transparency and accountability to investors and regulatory bodies.

To maintain the integrity of the tokenized asset and prevent illicit activities, robust Anti-Money Laundering (AML) and Know-Your-Customer (KYC) procedures must continue to be implemented.

Token Liquidity & Trading

Maintaining healthy token liquidity is vital for the success of a post tokezination. Issuers should proactively develop strategies to enhance token liquidity, as a liquid market attracts more investors and fosters confidence in the tokenized asset. Several approaches can be considered to achieve this.

  1. Market-making arrangements can be established to provide continuous buy and sell orders, ensuring a liquid trading environment for the security tokens. Market makers play a role in reducing price volatility and facilitating smooth transactions.
  2. Liquidity pools can be created, allowing token holders to pool their assets, thus increasing the liquidity of the token. These pools often leverage automated market-making algorithms to maintain balanced liquidity and enable efficient trading.
  3. Forming partnerships with reputable exchanges can significantly contribute to token liquidity. Listing the security tokens on established exchanges increases their exposure to a broader audience and provides access to a larger pool of potential investors.
  4. You should actively monitor and facilitate secondary market trading of the security tokens. Ensuring a healthy and active trading ecosystem encourages liquidity, market stability, and investor engagement.

Security & Custody

Maintaining a robust security infrastructure is of utmost importance in the post tokenization phase to safeguard the token ecosystem from potential cyber threats and attacks. Issuers must continuously assess and upgrade their security measures to stay one step ahead of evolving cybersecurity risks. Regular security audits and vulnerability assessments are essential to identify and address any weaknesses promptly.

Equally vital is the implementation of secure and reliable custody solutions for token holders. Providing secure custody services assures investors that their assets are protected and accessible only to authorized individuals. Utilizing advanced multi-layer encryption, hardware security modules, and cold storage solutions enhances the overall security posture.

Governance & Corporate Actions

Establishing a solid governance framework is crucial to ensure effective management and decision-making in the post tokenization phase. Issuers should create a governance structure that outlines clear roles, responsibilities, and decision-making processes. Involving token holders in the governance process fosters a sense of ownership and community engagement.

Implementing smart contracts or other mechanisms for voting and decision-making facilitates transparent and efficient corporate actions. Whether voting on significant changes, receiving dividends, or participating in other corporate actions, utilizing blockchain-based smart contracts ensures secure and tamper-resistant execution.

Planning for corporate actions well in advance is essential to avoid any disruptions or uncertainties. Issuers must communicate the details of upcoming corporate actions to token holders, allowing them to prepare and participate accordingly.

Where Brickken Comes Into This

Brickken can help throughout the entire tokenization process. From the pre digital asset phase of setting up the tokenomics, right up to post-launch. We keep you up to date with all of the latest regulatory compliance frameworks, offer a token platform to easily manage and distribute your tokens plus, our platform offers build in liquidity protocols so you don’t fall short once your token begins to be traded on the open market.

There is no easier way to launch a Token than using Brickken as your launch platform!

Check out the Brickken whitepaper for an in-depth look at how your platform can support your Tokenization.