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Token Do's and Don'ts

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NOTE

Economic and Governance Rights: Tokens vs. Pre-Existing Forms

Tokens provide a unique framework for economic and governance rights that differs fundamentally from traditional pre-existing forms like stocks and securities. Unlike equity in a corporation, tokens can be programmed to respond to various parameters autonomously, enabling continuous execution of specific functions without reliance on human intervention or decision-making. This programmability allows for the automation of governance and economic rights in a manner that prevents circumvention typical in legal agreements or corporate policies. Additionally, tokens offer the potential for integrated capabilities, such as guaranteeing specific computational resources, which traditional shares do not provide, highlighting the distinguishing advantages of tokenized systems over conventional equity models.

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