ERC-884

ERC-884 is a token standard designed specifically for representing shares and ownership stakes in real-world entities on the Ethereum blockchain, with particular attention to Delaware corporate law compliance. This standard creates tokenized equity where each token represents a proportional ownership claim in a legal entity, while maintaining the ability to enforce restrictions like transfer limitations and Know-Your-Customer (KYC) requirements. ERC-884 tokens are non-fungible in practice because they can be tied to shareholder identities and regulatory statuses, making them suitable for regulated securities. The standard addresses the unique requirements of corporate governance by enabling cap tables, voting rights, and dividend distributions through smart contracts while respecting legal frameworks. Example: StartEngine has utilized ERC-884-like mechanisms to tokenize equity in startups, allowing fractional ownership while maintaining regulatory compliance through shareholder registries on-chain. Why it matters for real-world asset tokenization: ERC-884 bridges the gap between traditional securities law and blockchain by enabling compliant equity tokenization, unlocking efficient cap table management and fractional corporate ownership for regulated entities.

Category: tokenization, tokenomics

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