ERC-884 is a blockchain standard for creating tradable tokens, each representing a specific share in a Delaware corporation. These tokens, based on the ERC-20 compatibility, allow for equity transactions and share management using blockchain technology. Primarily, ERC-884 ensures that each token mirrors a fully paid, unique, and uncountable share in a company, adhering to regulations set forth by Delaware Corporations Law.
Key features of ERC-884 include the requirement for token holders to be verified and whitelisted, eliminating the need for separate crowdsale contracts for whitelisting. This process includes establishing an off-chain private database to satisfy “Know Your Customer” (KYC) criteria, where the implementer must verify the identity and address of each ETH address, ensuring data coherence.
Furthermore, ERC-884 tokens cannot have partial value; they must represent the full value of a share. The standard simplifies shareholder management by not requiring tokens to be linked to a specific number of shares. Instead, knowing the number of tokens a shareholder possesses is sufficient.
In cases of lost private keys or tokens, ERC-884 provides a mechanism for shareholders to transfer their holdings to a new address, allowing for the revocation of the old address and reissuance of tokens to the new one.
This standard allows Delaware-based companies to leverage blockchain technology for efficient and compliant share registration and management, opening new possibilities for capital raising through IPOs or private equity sales.