Brick & Mortar Company Issuing Shares -- Which ERC to aim for?

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1

Good day,

We’d like to issue shares of a company (10+ years in existence) through a smart contract. The issuance would accept crypto-currencies (Ethereum for sake of simplicity) and the smart contract would issue them (to the address that sent the crypto) share(s) of owner ship. In addition, every quarterly (or so) we would like to issue dividends to all Share holders (depending on the number of shares they own).

Constraints:

  • There are a fixed number of Shares for sale.
  • The Offering can have a Start Date, End Date, as well as a “Pause to Shares being Sold” (if anything unwarranted occurs).

Are there any other constraints we should be aware of?

I’ve been looking at ERC 1155 if this would suit our case, however before proceeding would any of the other ERCs suit best for our use case?

We are also open for paid consultancy on this project.

2

Hi @OrganicCode,

I suggest looking at Points to consider when creating a fungible token (ERC20, ERC777).

One of the first issues to deal with is regulatory compliance.

ERC20 may be suitable but it really depends on what you need to do for regulatory compliance.

3

Thank you @abcoathup – The primarily considerations are being looked at on the regulatory compliances (even lawyers are new to this). We might not need a token. If we can avoid that, probably better.

The shares themselves would be issued once USDT or Ether would be received by the contract. The dividends, would also be in stable coins (USDT-ERC20 preferably or Ether) and sent back to the Addresses that own the Shares (depending on each shares they own).

I noticed ERC 777 doesn’t offer BatchTransfers (for issuing dividends like ERC 1155).