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ERC-S is a token standard by Street Labs that lets founders offer liquid market exposure to their company’s upside without issuing securities by anchoring real equity & letting tokenholders govern the monetary flow inside of that SPV.
Why founders choose ERC-S:
- You don’t have to pivot into a 100% onchain business, you can even use 1% or 50% of your equity. It’s up to you.
- There’s no longer a requirement to put a lot of energy into finding utility for the token, into developing a complex governance platform or in using all your revenue for buybacks. The token has its own intrinsic value proposition
- Avoid running two parallel cap tables (equity vs tokens) and creating friction between your equity holders and your token holders. No VC will ever ask “Why are these random tokenholders getting $100K in buybacks, how does this benefit our equity?”
- You get access to an awesome network of founders, startups, VCs and more. Street’s goal is to act as an accelerator and regularly sets up B2B deals between ERC-S companies.
- You don’t lose any volume fees by doing ERC-S, Street doesn’t take a single bps away here.