How It Works
ERC-S creates a legal bridge between tokens and equity without breaking corporate mechanics
OpCo
The actual startup: IP, employees, revenue, equity
SPV
Holds OpCo equity as a normal shareholder of record
ERC-S Ruleset
Governs SPV proceeds distribution after exits
Tokens
Anchored to SPV outcomes, participate in resource allocation
The Key Insight
In most crypto projects, tokens sit outside the corporate capital stack. Equity decisions (debt, dilution, acqui-hires) can silently wipe out token-anchored upside. ERC-S fixes this by anchoring tokens to a real shareholder of record—so tokenholders aren't left holding promises when equity value is destroyed.
What ERC-S Enables
Powerful capabilities for token ecosystems
Prevents Silent Value Destruction
Flags economic impairment events and forces transparency when equity value is at risk, so tokenholders aren't left holding empty promises.
Deal-Friendly Structure
Buyers see one SPV, one seller, clean cap table. ERC-S works seamlessly within existing M&A frameworks, preserving deal simplicity.
Real Equity Anchor
Tokens are anchored to a real shareholder of record. Equity sits in a legal SPV that participates in exits like any other shareholder.
Post-Exit Coordination
Tokens influence resource allocation after exits, enabling community-driven value creation without interfering with corporate control.
Technical Deep Dive
Detailed documentation for builders, lawyers, and protocol designers