Ignium’s Revenue-Sharing Model Allows Issuing Companies Can Earn More than they Contribute

18 Feb 2022



The principles of decentralization dictate that power held by singular entities in centralized systems should be distributed among the majority of participants. And as many different decentralized finance (DeFi) platforms and decentralized autonomous organizations (DAOs) have demonstrated, participants should also receive their fair share of a system’s revenue in exchange for their contributions.


Ignium, a blockchain powered capital market platform for issuing and investing in digital assets, is proud to announce a successful proof-of-concept demonstrating this kind of reward distribution. For the first time, one of Ignium’s issuing companies — Estonian-based crypto exchange CoinMetro — received monthly rewards in the amount of 3.5x its monthly participation costs, in addition to the amount of capital earned through security token sales.


How does Ignium work? 


Ignium’s capital market model is designed to enable small and medium enterprises (SMEs) to monetize their communities. Using Ignium, SMEs around the globe can issue security tokens that can be purchased and traded by their local and global networks.


In addition to the sum of capital raised through security token sales, issuing companies receive 25 percent of transaction fees generated by traders in community driven secondary markets. Therefore, the more active a company’s community is on Ignium, the greater the rewards that each company will receive. Ignium’s ultimate goal is to share the benefits of the platform as much as possible with all of its users and contributors.


Since the beginning, we have been working to facilitate connections between SMEs and its investors around the globe. The Ignium team believes that SMEs should have access to the capital they need, and that small investors should have a range of financial opportunities — and that both parties should be incentivized to connect with one another. By sharing rewards with issuing companies, Ignium’s revenue-distribution model is an important part of that objective.


Are you involved with SME’s or any other business that is considering fundraising?

Contact Ignium and enable the fundraising with help of your own community, turning them from customers to investomers.

Reach out to us: [email protected]


About Author

Reimo Hammerberg
CEO & Co-founder

Reimo has worked for close to 20 years at law firm Sorainen as a capital markets and financial services attorney and last 13 years as partner and head of the practice. He has advised numerous capital markets transactions, projects related to regulated entities, licensing, including advising capital markets infrastructure (stock-exchanges, CSDs) operators as well as technology start-ups acting in the space of financial services. Reimo is a board member at Finance Estonia (industry organisation for financial sector in Estonia) and heads blockchain related sub-group in FinTech group.

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