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When we built this platform and began releasing information on the DRP Standard, we anticipated a learning curve. At first glance, DRP tokens may appear similar to traditional low-float, high-FDV structures. However, this assumption misses the fundamental mechanics that make DRP different. We wrote this section to clarify the misconception and to emphasize that proper due-diligence on underlying companies is what makes Internet Capital Markets (ICM) powerful. Tokens only matter when tied to real businesses — and DRP enforces that connection.

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Understanding DRP vs. Low Float / High FDV

In many existing crypto models, low circulating supply + high fully diluted valuation creates a misleading picture of value. Teams often hold large reserves that unlock over time, leading to supply overhang, dilution, and opaque value capture. DRP is structurally different.

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Key Differences

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✅ FDV Represents the Entire Company Value

The fully diluted valuation (FDV) under DRP reflects the total value of the company, not just a speculative multiple.
It maps to the entire capital stack — the business itself — rather than approximating some hypothetical terminal value.

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✅ Circulating Tokens = Real Corporate Debt

Every circulating token functions as a Senior Debt obligation against the company.
  • When a company releases more tokens → Debt increases
  • When a company buys tokens back → Debt decreases
This creates real economic gravity.
Token supply is no longer arbitrary — it carries weight.

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✅ 100% FDV Will Never Circulate

If all tokens were in circulation, the company would owe 100% of its value — which would mean insolvency.
Because the debt scales with circulating supply, doing so would destroy the company. Therefore, full circulation is structurally irrational, unlike traditional systems where teams can dump nearly the entire supply if they choose.

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✅ No Hidden Vesting or Emissions

There are no automatic emissions, vesting schedules, or silent unlocks — unless explicitly disclosed. This eliminates the rug-pull dynamics that plague traditional token models.

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✅ Locked Tokens Are Not Silent — They Require Public Disclosure

While tokens unlock after a 3-month minimum lockup, they cannot be claimed silently. To access tokens, the Founder must:
  • Make public disclosures on SOAR
  • Post on social channels
  • Notify token holders directly
  • State:
    • Reason for requesting tokens
    • Use of funds
    • Amount requested
This creates transparency, accountability, and social pressure that discourages irresponsible actions. If the public disagrees with the request, they can sell ahead of release — full information, clear choice.

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✅ The Market Decides What Debt Is Healthy

Because circulating tokens represent debt, the public evaluates:
  • How much debt is appropriate
  • Whether the request is justified
  • If the company is acting responsibly
  • When the Founder becomes a bad actor by taking on irresponsible levels of debt
The public — not insiders — ultimately determines whether the company is trustworthy. This dynamic creates real market governance, backed by economic reality rather than vague “governance token” rhetoric.

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Why This Matters

Traditional low-float, high-FDV tokens are often optics-driven and rely on promises, future unlocks, and speculative narratives.
DRP removes this illusion by grounding tokens in:
  • Measurable obligations
  • Transparent mechanics
  • Real business incentives
Companies cannot treat tokens as “free money,” because every release has a consequence.
Likewise, buybacks have a real economic reward. This ensures that token issuance is:
  • Purposeful
  • Accountable
  • Mission-aligned
and that holders have clear insight into business-aligned behaviors.

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In Summary

DRP tokens are not low float / high FDV instruments because:
  • Circulating tokens = real corporate debt
  • FDV = real business value
  • 100% supply will never circulate
  • No hidden emissions or vesting
  • Token access requires full public disclosure
  • Public can exit before unlocks
  • The market determines acceptable debt behavior
DRP transforms tokens from speculative abstractions into participatory financial instruments backed by real incentives and real governance through transparency and market forces — the foundation of true ICM.