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Documentation Index

Fetch the complete documentation index at: https://docs.star.fun/llms.txt

Use this file to discover all available pages before exploring further.

Tokens are widely used to fund, distribute, and coordinate projects on the internet. In most cases, however, they do not represent enforceable rights over a company, its assets, or its outcomes. Ownership define how a token is structurally connected to something off-chain, typically a legal entity, its equity, and its intellectual property. They determine whether a token is purely a market instrument or part of a broader ownership framework.

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What Ownership Does

An ownership structure establishes a clear relationship between:
  • The token
  • The project or company
  • The token holder
This typically includes:
  • A defined legal entity associated with the token
  • A description of any rights or protections afforded to token holders
  • Mechanisms for enforcement, where applicable
  • A structure for how value may accrue or be reflected
The specifics depend on the model used.

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Why This Matters

Without an ownership structure, there is generally no formal link between a token and the underlying project. This means:
  • Token holders do not have legal claims on equity, assets, or IP
  • Value can be created or realized outside of the token
  • There is limited or no recourse in cases of misconduct
Ownership structure introduce structure and clarity around these points. They do not remove risk, but they define how the system operates.

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Design Tradeoffs

Different ownership models prioritize different outcomes. Common tradeoffs include:
  • Speed vs. legal complexity
  • Founder control vs. holder protections
  • Flexibility vs. standardization
No single approach is universally optimal. The appropriate model depends on the project’s goals, stage, and constraints.

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Choosing an Ownership Structure

As a founder, selecting an ownership structure determines how your token relates to your company and its future outcomes. The following pages outline the available options and how they differ in structure, rights, and implications.