All Assets on Nexus can be tokenized, which means that the ownership of an Asset is transferred to a token rather than one Signature Chain. The token then represent partial ownership or rights to the asset. Any user that holds the token is a partial owner of the Asset (has rights to the asset), much like owning shares in a company. Therefore, Nexus tokens can be used to facilitate the transparent and automatic payment of Royalties and Dividend payouts.
The token allocation determines how the revenue is distributed, and the revenue is paid out to the holders in a direct peer-to-peer manner. This is in direct contrast to current manual systems that are used to facilitate these types of payments, which are often slow and costly to operate.
The diagram above shows the flow of an automatic payment of a shared revenue stream. In this example, the token (called TKN) distribution is 50-25-25. The process follows these steps:
1. User pays a license fee (here it is 1000NXS) for use of an asset.
2. The token holders are notified to claim their percentage of the payment (DEBIT), which is represented by their total token balance divided by the total token supply.
3. Each token holder credits their account by proving their right to this payment with their TKN balance.