Treasury Series
A dedicated series within a Series LLC structure that holds un-issued or repurchased tokens.
Full Definition
A Treasury Series is a compartment within a Series LLC structure that serves as the holding entity for security tokens that are either not yet issued to investors or have been repurchased from the market. Treasury tokens are not counted as outstanding securities for voting or distribution purposes.
This structure mirrors the concept of "treasury stock" in traditional corporate finance—shares that a company holds in its own name.
Why It Matters
On Sails.to, the Treasury Series enables sophisticated token supply management:
- Controlled issuance: Tokens are minted to treasury first, then distributed to investors as subscriptions are completed
- Buyback programs: Issuers can repurchase tokens from the market, with repurchased tokens returning to treasury
- Future offerings: Treasury tokens can be issued in subsequent rounds without requiring new token creation
The Treasury Series works alongside the Operating Series (holding project assets) and CrossConversion Series (facilitating format changes) within the overall structure.
Related Terms
Professional token management
Sails.to handles the complexity of compliant token structures.
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