# Share token ### Overview The tokens which investors receive are shares of an existing Swiss company. By purchasing a tokenized share, investors become a shareholder of that company. The functionality of this token is defined by Swiss law. ### Swiss Law and Tokenization Swiss law allows Swiss companies to tokenize their shares according to the Swiss DLT Bill. This regulation grants companies the flexibility to issue tokenized shares, instead of the traditional physical share certificates. The rights of these shares are equal to the existing paper version. ### Swiss DLT Bill The DLT bill is a new law that has been in force since the beginning of 2021. The content of the law can essentially be summarized in the following formula: security = token. A security grants its holder a specific right against the issuer. For example, a share gives its holder (the shareholder) the right to a dividend against the corporation (the issuer). Securities are usually issued as physical papers. Thanks to the DLT Bill, securities previously issued as paper can now also be issued as a token. In this way, a share certificate becomes a share token, while the rights remain the same. ### Tokenization To create share tokens the following process is required: 1. **Shareholders' Decision**: Existing shareholders decide to issue new tokenized shares, with the decision requiring notarial approval. 2. **Creation of Share Issuance Contract**: Setting up of a share issuance smart contract in compliance with Swiss law. 3. **Public Offering of Shares**: Shares are made accessible to the public. 4. **Investment by Shareholders**: (Future) Shareholders invest in the company using either USDC or FIAT. 5. **Registry Approval and Creation**: New share issuance is recorded in the Commercial Registry, subject to Swiss notary and Commercial Register approval. 6. **Incorporation into Commercial Register**: Newly issued shares are entered into the Swiss Commercial Register. 7. **Granting of Shares**: Shareholders officially become shareholders, receiving their allocated shares. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://arcton.gitbook.io/documentation/tokenomics/share-token.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.