Chapter 3. How It Works How It Works

How It Works

Participation accumulates as experience, and performance circulates to the next participation through liquidity.

3.1 Crowdfunding Participation Mechanism

RWA-Based Crowdfunding Flow

1

Project / Individual issues Participation Rights Token

Issuers create and disclose token issuance conditions, roadmap, and fund usage on-chain.

2

Global Participants participate in funding

Participants purchase Participation Rights Tokens according to disclosed conditions.

3

Funding Success → Proceed with production/activity

If funding criteria and DAO approval are met, the project moves into execution stages per milestones.

4

Content distribution

Produced content is released to YouTube, OTT, and global distribution channels.

5

Performance occurs in the Web2 market

Real-world metrics (views, revenue, licensing) are generated outside the platform.

6

Performance verification → Liquidity connection

Verified performance data triggers issuer liquidity supply according to pre-disclosed principles.

Core Principles:

• ❌ Not investment contract or equity participation

• ✅ Based on rights to participate in activity process

3.2 Performance Occurrence and Liquidity Connection

Performance Occurrence

After production, content is distributed in the actual market, generating performance through:

• View counts

• Ad revenue

• Licensing

• Distribution contracts

Performance is verified in the real market, not inside the platform.

Liquidity Supply by Issuer

When performance occurs, the issuer supplies liquidity to the Participation Rights Token they issued according to pre-disclosed criteria.

Liquidity Supply Principles:

Item	Principle
Timing	After performance occurrence
Criteria	On-chain disclosure at issuance
Transparency	Execution status fully recorded
Responsibility	Responsibility of the Issuer

This is:

• ❌ Not profit distribution

• ✅ A mechanism where performance connects to participation structure

3.3 Participant Choice

Participants decide the following for themselves in DeFi:

Choice	Description
💎 Token Holding	Long-term support, Community activity
💰 Assetization	Swap, Stablecoin conversion, LP
🔄 Re-participation	Subsequent projects by same issuer
🌐 Circular Participation	Diversifying to other projects
🎁 Donation	ESG route, External donation

Core Principle:

• ✅ The platform does not force any choice.

Re-participation and Value Circulation

Successful Project → Subsequent Project / Individual accumulating trust → Repeated participation / Participant → Accumulation of experience and trust

The platform completes a structure of continuous value circulation, not one-off funding.