Introduction

Asset tokenization is the process by which any asset, tangible or intangible, is divided into smaller pieces that take the form of tokens. Each token represents a proportional part of the asset, offering the owner of the token, the corresponding rights provided by the issuer.

The tokenization market is booming and has established itself as a real alternative for individuals and businesses looking to raise financing. Historically, investors are used to a traditional marketplace in which there is almost zero tolerance for small to medium sized investors when it comes to illiquid assets. This is a marketplace where institutional money rules with an iron fist.

In addition to the tokenization market, there is a complementary market aimed at the development of circular economies, in which more and more companies, both public and private, want to use asset tokenization tools to contribute to their fight for sustainability, utilizing native tokens as a direct communication channel, enabling holders to engage in the governance of the protocol by voting, rewarding positivity and interacting as member of a community.

This experience led PassiveSphere’s management to decide to change the operating model from a centralized blockchain, to a frictionless, decentralized model, where third parties could take advantage of PassiveSphere’s technology and know-how in a secure and legally compliant manner, whilst enjoying all the benefits associated with the use of security token offerings as a financing methodology.

During this transition, we realized that this new paradigm was not just providing a tokenization solution. PassiveSphere will be providing a fully decentralized management system that will allow businesses to operate on chain (Web3), through entities born natively in the blockchain (DAOs), or through a combination of both (Web2-Web3), as the user finds it fit. Businesses will be capable of total customization of their presence and decision making in the blockchain.

This whitepaper explains what PassiveSphere is and where it is going, as the sole reason for its pivoting from a centralized to a decentralized operating model is to create an ecosystem where different economic agents coexist, using tokenization as the foundation and its utility token, the “PPX” the epicenter and fuel for boosting this new reality.

Let us begin by discussing the different types of tokens and forms of issuance.