Illustrative work sample / Tokenized fund distribution
Count the buyers first.
A tokenized fund share earns a fee only on assets that eligible holders buy and keep. Change the assumptions to see how many prospects each channel must reach, how much of the fee each channel leaves the issuer, and how far the result sits from break-even.
Every default input is hypothetical. These are not fund terms, platform fees, measured conversion rates or claims about a particular issuer, platform or fund. The model demonstrates a method.
Every number on it is a made-up example.
Assumptions
Result under these assumptions
Calculated from your inputs. This compares assumptions. It is not a forecast, a fund offer or a channel recommendation.
| Step | Channel A | Channel B |
|---|---|---|
| Holders | ||
| Prospects reached | 200 | 5,000 |
| Eligible to hold | 120 | 2,000 |
| Able to hold the token | 36 | 1,600 |
| Holders who subscribe | 7.2 | 80 |
| Prospects reached per holder | 27.8 | 62.5 |
| Yearly economics | ||
| Modeled assets | $72,000,000 | $40,000,000 |
| Fee kept after the channel's share | 20 bps | 10 bps |
| Net fee revenue | $144,000 | $40,000 |
| Onboarding cost per year | $60,000 | $16,000 |
| Channel contribution | $84,000 | $24,000 |
| Both channels | ||
| Modeled assets | $112,000,000 | |
| Contribution | $108,000 | |
| Fixed annual cost | $500,000 | |
| Result after fixed cost | −$392,000 | |
Modeled result: $392,000 a year short of fixed cost.
Break-even assets at this mix: $518,518,519, 4.6 times the modeled assets.
A modeled surplus alone does not establish that the product should launch.
What the arithmetic does
- Holders = prospects reached × eligible × able to hold × subscribes.
- Modeled assets = holders × average allocation.
- Net fee revenue = modeled assets × (management fee − fee paid to the channel) ÷ 10,000.
- Onboarding cost per year = holders × onboarding cost per holder ÷ holding period in years.
- Channel contribution = net fee revenue − onboarding cost per year.
- Result = contribution from both channels − fixed annual cost.
- Break-even assets = fixed annual cost ÷ (contribution ÷ modeled assets), at the same channel mix.
The three rates multiply, so one weak stage caps the channel whatever the others do. Halve any one rate and the assets halve.
With the default assumptions, Channel A reaches 200 prospects and ends with 7.2 holders and $72,000,000. Channel B reaches 5,000 prospects and ends with 80 holders and $40,000,000. Channel A contributes $84,000 a year and Channel B $24,000, against a fixed cost of $500,000. Break-even at that mix needs $518,518,519. These are example outputs, not observed results.
"Able to hold the token" means the prospect has a wallet or custodian approved for this token. Onboarding cost is the one-time work to admit a holder: identity checks, wallet approval and legal review. The model spreads it over the holding period, because a holder who leaves must be replaced.
What would change the decision?
- Who the eligible holders are, and what evidence supports the count.
- How long a holder takes to get a wallet or custodian approved, and who pays for that work.
- What the distributor does for its fee, for how long, and whether the terms are exclusive.
- Whether the assets are new to the fund or move from an existing share class.
- How long holders stay, and what redemption terms they are promised.
- How much of the assets one or two holders account for.
- What a holder can do with the token that it cannot do with the ordinary share, such as post it as collateral or settle outside bank hours.
- Which investor types and jurisdictions the offering documents allow.
The model does not price portfolio management, fee waivers, sales staff outside the fixed cost, taxes or a change in the rules. It treats every holder in a channel as average, so it hides the case where one holder is most of the assets. It shows a yearly rate once the modeled holders have invested, not the months it takes to get there. Fractions of a holder appear because the rates multiply; read them as an average, not a forecast. Check whether a quoted platform fee is charged on top of the management fee or taken from it, so the model does not count it twice.