4.2.6 Typical Blockchain-Based Business Models

Tokenization issues are intricately tied to the specific business model chosen. In the DLT/blockchain platform industry, there exists a diverse array of business models, some of which are directly related to tokenization while others are not. These models harness blockchain technology to offer innovative solutions across various sectors. The success of these models hinges on crucial factors such as regulatory compliance, active community engagement, technological expertise, and the ability to generate value for stakeholders. Furthermore, these business models entail different levels of risk and profit potential, which are influenced by market conditions, competitive landscape, and other relevant factors.

#	Model	Description	Monetization	Examples	Success Factors	Risk	Profit
1	Security Token Offerings (STOs)	Issuing tokens that represent ownership in real-world assets	Token issuance fees, transaction fees	Harbor, Securitize, tZERO	Regulatory compliance, asset-backed value proposition	Medium	Medium
2	Initial Coin Offerings (ICOs)	Fundraising through the sale of tokens	Token sale proceeds, investor participation fees	Ethereum, EOS, Tezos	Solid project concept, strong community engagement	High	High
3	Tokenized Asset Platforms	Creating platforms for trading tokenized assets	Transaction fees, listing fees	OpenSea, Rarible, NBA Top Shot	Diverse asset offerings, user-friendly interface	Medium	Medium
4	Decentralized Finance (DeFi)	Providing financial services through decentralized protocols	Transaction fees, lending/borrowing fees	Compound, Aave, Uniswap	Efficient smart contract design, strong community governance	High	High
5	Tokenized Real Estate	Fractionalizing real estate assets into tradable tokens	Rental income, transaction fees	RealT, Propy, Harbor	Increased liquidity, accessibility to real estate investments	Medium	Medium
6	Loyalty and Rewards Programs	Creating token-based loyalty and rewards systems	Token redemption fees, partnerships	AirAsia BIG Loyalty, Rakuten	Enhanced customer engagement, flexible redemption options	Low	Medium
7	Tokenized Intellectual Property	Tokenizing ownership rights to intellectual property	Royalty fees, licensing fees	Maecenas, IPwe	Increased liquidity, global access to IP investment	Medium	Medium
8	Tokenized Gaming Assets	Turning in-game assets into tradable tokens	Asset sale fees, marketplace fees	Axie Infinity, Gods Unchained	Unique and scarce in-game assets, active player community	Medium	Medium
9	Supply Chain Tokenization	Tracking and verifying supply chain transactions	Transaction fees, data services	VeChain, Waltonchain	Increased transparency, improved traceability	Medium	Medium
10	Tokenized Investment Funds	Creating digital investment funds represented by tokens	Management fees, performance fees	Polychain Capital, Pantera Capital	Diversified investment portfolio, track record of success	Medium	Medium
11	Operation of Blockchain Networks with Native Coin Implementation (Layer-1 solutions)	Building and operating blockchain networks with a native cryptocurrency	Transaction fees, network fees	Bitcoin, Ethereum, Cardano	Robust network infrastructure, scalability, adoption	Very High	Very High
12	Create Layer 2 Solution on Top of Existing Network	Developing scalability solutions on existing blockchain networks	Transaction fees, solution implementation fees	Lightning Network (Bitcoin), Polygon	Improved transaction speed, reduced fees, enhanced scalability	Medium	Medium
13	Private Blockchain Network	Implementing blockchain technology for private, permissioned networks	Network setup fees, maintenance fees	Hyperledger Fabric, Corda	Enhanced security, controlled access, efficient workflows	Low	Medium
14	Blockchain Service	Offering blockchain-related services such as consulting, development, and integration	Service fees, consultation fees	IBM Blockchain, ConsenSys	Expertise in blockchain technology, customized solutions for clients	Low	Medium