A capitalization table, or cap table, in the context of crypto projects, is a ledger that provides a detailed breakdown of a project’s equity ownership, including token holders, investors, and their respective ownership stakes. It tracks all issued tokens, equity shares, and convertible instruments, along with their dilution effects and vesting schedules. Its purpose is to present a transparent and accurate view of ownership distribution and control, critical for governance, valuation, and fundraising in the decentralized ecosystem.
Mechanism
The mechanism typically involves a centralized database or, increasingly, a decentralized ledger (blockchain) where records of token issuances, allocations to team members, advisors, and various funding rounds (seed, private sale, public sale) are stored. Smart contracts often govern token vesting schedules and distribution, automatically releasing tokens based on predefined conditions. This system updates ownership percentages and potential future dilution as new tokens are issued or existing ones vest.
Methodology
The methodology entails maintaining precise records of all token grants, sales, and transfers, often utilizing specialized software or on-chain analytics tools for accuracy. It accounts for various token classes, such as utility tokens, governance tokens, and security tokens, alongside traditional equity, detailing the rights and privileges associated with each. This structured data is fundamental for calculating fully diluted valuations, understanding voting power distribution in DAOs, and managing stakeholder relations effectively.
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