Capital funding refers to the financial resources provided to a company, either in debt or equity, to support its operations.
Tokens and Decentralized Autonomous Organizations
Traditionally, a company’s capital structure could be determined by examining its liabilities and shareholder equity as reflected in the balance sheet.
However, the emergence of tokens and decentralized autonomous organizations (DAOs) has introduced alternative methods where companies or organizations can operate without relying on traditional capital funds.
Instead, they can issue tokens to sustain their operations in the long term.
It is important to note that global regulators have clarified that tokens are not securities, which means they do not possess the rights and protections conferred by securities laws.
Companies can raise capital funds, including stock, debt, or token issuance.