TREEEC Participation Certificate (TPC)
The participation certificates will be the new "world shares."
With CoopInvest, TREEEC has taken the first decisive step so that in the (near) future, every company worldwide in the legal form of a corporation will be able to offer company shares to private and institutional investors very easily and raise equity capital in a similar way as via a stock exchange.
As in stock trading, its company shares are quoted at the current price and can be freely traded among market participants in real time.
Cooperative structure, own Ecocosmos and innovative participation certificates
The key lies in the cooperative structure and TREEEC's own EcoCosmos - as well as in the innovative TPC participation certificates, which are, as it were, the new "world shares". The basic requirement for both suppliers and buyers is membership of TREEEC. It is also mandatory that the company is a corporation registered in a national commercial register. It is irrelevant whether it is a UG, GmbH, AG, Limited, Corporation, PLC or similar form of company. Even for joint stock companies it will be much easier to use the online trading platform of TREEEC instead of a classical stock exchange.
Standardized and on a stable German legal basis
Each investment in a company is generally made in an atypical silent partnership form according to a contractual basis standardized by TREEEC and based on stable German law. An obligation to make additional contributions is excluded. Certain control rights, such as those to which non-voting preferred shareholders in a joint stock company are entitled, are just as much a fixed component as protection against dilution through new subscription rights. These are real equity and a share in the goodwill, profit and loss of the company.
Securitized as Smart Contract on block-tree basis
This participation is securitised in the form of participation certificates. Securitized means the form of a digital Smart Contract, which is based on the structure of the TREEEC Blocktree, a further developed block chain. Moreover, it is linked to TREEEC MONEY (TRM), a proprietary, value-based crypto clearing currency, and an associated clearing system into which the trading platform is also integrated.
By connecting with TREEEC MONEY (TRM), a secure financial basis is additionally created for companies and investors in countries with fragile and weak currencies. But also all users of this "world stock exchange", providers as well as buyers, trade on a secure and multiple secured basis, which excludes fraudulent manipulations as well as money laundering or tax evasion.
The clearly numbered TPCs correspond to fixed shares
The special feature is the division into fixed participation shares. When the TPC Participation Certificates are issued, each of them corresponds to the value of one unit of TREEEC MONEY (TRM), which is currently EUR 12. In this respect, each TPC participation certificate is a separate, legally independent participation contract based on TREEEC for a precisely defined participation unit or participation amount, namely 12 EUR. Initially, each TPC is still firmly linked to a cooperative share, which is also clearly defined by its number and additionally dedicated to a specific purpose. As a consequence, the TPC will become "independent" with the increasing functionality of TREEEC MONEY (TRM) and the clearing system T:XCHANGE, while the cooperative basis will remain unchanged. For this purpose, the structures will be adjusted on a sliding scale and extended legal and approval requirements will be created. As a result, additional functions will also become available.
Real-time quotations and minimum fees
The quotations on the trading platform then reflect the current price of a TPC, determined from supply and demand, just as on an exchange with real-time quotations, whereby the issue price always corresponds to the equivalent of one unit of TREEEC MONEY (TRM). The transaction fees represent only a fraction of the fees normally charged for stock exchange transactions. There are no order fees because there are no intermediary brokers, and the transaction fees are only 1 milliTRM, or just 0.024 EUR per transaction, and that is just to securely activate and update the associated Smart Contracts.
The structure ensures stable and secure functionality
The legal structure of TREEEC is also designed to ensure transparency for all participants and to guarantee stable and secure functionality. The foundations that were and will be created in Germany in connection with Switzerland, the seat of the supporting foundation, are still linked to the structures in the USA for TREEEC MONEY (TRM). The trading platform will also be linked to control instruments that go beyond those of conventional exchanges. This will ensure that while companies have easy access to equity capital, they are also transparent and meet their obligations to investors and TREEEC as operator of the trading platform.
Additional innovative opportunities and instruments
TREEEC even goes a decisive step further by integrating these companies as members and business partners and connecting them to the clearing system for TREEEC MONEY (TRM), offering additional possibilities and instruments beyond the trading platform, including, for example, the novel, innovative “commitation”. This makes it very easy to take advantage of additional financing options for current transactions or to make use of system-immanent support for all entrepreneurial and business issues.
The digital world meaningfully linked with the analogue economic world
The setting up of representatives of TREEEC and CoopInvest in all regions of the world, where not only start-ups are located but also established companies that need equity capital, is the first step in the development to sensibly combine the digital with the analogue, practically economic world. This is followed by the Trust Houses of TREEEC, the banking offices of the future for TREEEC MONEY (TRM), which are also first level registries for the smart settlements via T:XCHANGE. With its diverse applications, the system is also designed to be highly secure and tamper-proof, for which proof will be provided. Whenever FinTech is mentioned, TREEEC is already on its way to a level above what is currently state of the art.
Equity procurement and stock exchange trading will be changed disruptively
In summary, it is without question an innovative and revolutionary instrument, which in the eyes of some financial experts is certainly also classified as "dangerous", as it will shatter old structures and disruptively change the way equity is raised and traded on the stock exchange. The term "world share" is therefore not so far-fetched. When the TREEEC online trading platform will go online as a preliminary stage of T:XCHANGE, an alternative stock exchange for participations in companies of any kind, without having to be public limited companies, will be created according to the system of TREEEC, which will put all existing stock exchanges in the shade and will be freely accessible for everyone who is a member of TREEEC.
What is a TPC certificate?
Summary and practical benefits
TREEEC has developed a standardized participation model based on a framework agreement for an atypical silent partnership under German law. The investors participate in TREEEC as investing members. We participate in your company without a time limit and without changing the shareholder structure according to the commercial register. We have contractually defined rights of control and participation, but no voting rights.
Every investment unit you receive as equity capital is documented by a TPC, a TREEEC Participation Certificate. One investment unit corresponds to the nominal value of one cooperative share of TREEEC; that is 12 EUR. Each investment unit participates in profit and loss according to a transparent cap table in proportion to the value of your company and the additional equity capital received when the investment was founded.
If an investor acquires a cooperative share for an investment in your company, a TPC directly belonging to this cooperative share will oppose this. If these numbered and thus precisely identifiable cooperative shares are transferred to other investing members, the TPCs remain associated with them.
Depending on the development of your company, the value of the TPC and therefore the value of the cooperative share in question will also increase. Members can buy and sell these cooperative shares among each other via a dedicated trading platform. The price is determined by the current valuation and based on supply and demand.
- We have no influence on the list of shareholders in the commercial register.
- Existing shareholders retain their voting rights.
- The cap table is transparent.
- No notarization is required.
1. Management board & supervisory board
Conclusion of the participation agreement
- Standardized contract templates
- No need for notarial authentication
- Dedication of cooperative shares and TPCs
2. Share register
(coming soon: Depot)
Management of cooperative shares and related TPCs
- Secure register through number assignment and verified members
- Conformity with the German law on cooperatives
3. Trading platform
Transfer of securities
- Protected access through 3-fold authentication
- Secure transactions