Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317936 
Year of Publication: 
2023
Citation: 
[Journal:] Electronic Commerce Research [ISSN:] 1572-9362 [Volume:] 24 [Issue:] 1 [Publisher:] Springer US [Place:] New York, NY [Year:] 2023 [Pages:] 239-273
Publisher: 
Springer US, New York, NY
Abstract: 
Blockchain-based tokens seek to overcome the friction and opaqueness of the legacy financial infrastructure in the company funding process, particularly in the early-stage and equity crowdfunding domain. While Initial Coin Offerings and Security Token Offerings proposed a solution for crowdfunding, early-stage companies still face challenges in using blockchain as an alternative equity funding infrastructure. In this context, the idea of blockchain-based equity tokens remains hypothetical. In addition, the literature lacks design theory for the development and implementation of blockchain-based equity tokens. This research bridges this gap by designing, developing, and evaluating an equity token prototype for crowdfunding, following the design science research approach. We propose a refined crowdfunding model and derive seven design principles that contribute to the design theory of equity tokens. The research results show that blockchain-based equity tokens improve efficiency, transparency, and interoperability while meeting regulatory requirements and facilitating secondary market trading.
Subjects: 
Blockchain
Design science
Equity crowdfunding
Initial coin offering
Security token offering
Tokens
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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