Easily set-up your Payout tokens within the DAO settings
Redemption of Payout Tokens
The Hypha DAO has created a special redemption process to convert these Payout tokens into fully exchangeable Liquid tokens only upon request. It is possible to earn these Payout tokens and not redeem them until a real need for converting these assets into fiat currency arises. This way, the treasury may not be drained of its valuable exchangeable Liquid token holdings until the requests for conversion is present (which could be indefinitely).
DAO treasury Liquid Tokens
Once you have connected a Liquid token (EOS or Telos) account to use as a DAO treasury, your members can then redeem their Payout tokens into Liquid tokens. This process will convert Payout tokens on the actual market price, and send the Liquid tokens to your member's specified account.
Utility VS Security token
Utility Tokens grant access to a specific service or feature within a platform (like voting, activating tools, and others). They can be Liquid if converted on secondary markets, but their primary purpose isn't investment or profit. While Security Tokens represent a share or stake in a project and entitle the holder to dividends or profit-sharing. These latter tokens are more likely to be viewed as securities by regulators and come with additional compliance requirements.