Revenue Share
A revenue share is the percentage of a YouTube Creator's revenue that is distributed Monthly to Investors who hold Channel Revenue Tokens (CRTs) purchased through GigaStar's platform.
Understanding Revenue Share
Revenue share is the foundational concept behind Channel Revenue Tokens (CRTs) on GigaStar's platform. When a Creator partners with GigaStar, they agree to share a specified percentage of their YouTube revenue with Investors who purchase their CRTs. This percentage is clearly defined in the offering documents and Form C filing with the SEC before any CRTs are sold.
The revenue share is calculated based on the Creator's total YouTube revenue, which includes earnings from advertisements, memberships, Super Chat, and other monetization features available through the YouTube Partner Program. Each month, the Creator's YouTube revenue is tracked, and the agreed-upon percentage is calculated and distributed to CRT holders as Monthly distributions.
It is important to understand that the revenue share percentage is fixed at the time of the offering, but the actual dollar amount of distributions will vary based on the Creator's YouTube revenue performance. If a Creator's channel grows and earns more revenue, the distributions may increase. Conversely, if revenue declines, distributions will decrease accordingly.
Investors should recognize that revenue share distributions are never assured. CRTs are speculative securities, and there is no assurance that a Creator will continue to generate YouTube revenue at any particular level. Factors such as changes in YouTube's monetization policies, shifts in audience engagement, or Creator-specific risks can all impact the revenue that forms the basis of distributions. Investors should carefully review the risk factors disclosed in each offering's Form C before investing.
Key Points to Remember
- Revenue Share is regulated by the SEC under Regulation Crowdfunding
- All investments carry risk — past performance doesn't guarantee future results
- Review all offering documents carefully before investing
Related Terms
Channel Revenue Token (CRT)
A digital asset that represents a percentage of a YouTube channel’s future revenue. A CRT becomes tradable in the secondary market after a 12-month holding period from its initial purchase.
Creator
A Creator is a YouTube content producer who partners with GigaStar to offer Channel Revenue Tokens (CRTs), sharing a percentage of their YouTube revenue with Investors through Monthly distributions.
Distribution
A distribution is a Monthly payment made to Channel Revenue Token (CRT) holders, representing their share of a YouTube Creator's revenue earned during that period.
Investor
An Investor is an individual who purchases Channel Revenue Tokens (CRTs) through GigaStar's platform, receiving Monthly distributions from a YouTube Creator's revenue.
Revenue Percentage
The specific percentage of a Creator's YouTube revenue shared with CRT holders through Monthly distributions. Varies by offering and is disclosed in the Form C.
YouTube Revenue
YouTube revenue is the income a Creator earns through the YouTube Partner Program from ads, memberships, Super Chat, and other monetization features, forming the basis for CRT distributions.
Frequently Asked Questions
Can anyone invest in CRTs?
Investors aged 18 and older can invest in CRTs through GigaStar Market. Under Regulation Crowdfunding (Reg CF), non-accredited Investors have annual investment limits based on their income and net worth. All Investors must complete identity verification (KYC) as part of the account creation process before making any investment.
Do revenue distribution rights transfer when a CRT is sold?
Yes. Revenue rights transfer with ownership. The holder of record on the open of the first day of the month receives the associated revenue share distribution for the previous month.
Do I continue receiving revenue distributions while holding CRTs?
Whoever is the CRT holder of record at the beginning of the calendar month will receive the distribution payable later that month, typically around the 25th. To elaborate, for any CRT where a trade is completed before 12:00:01 am on the 1st day of the month, the next distribution, typically around the 25th of the month, will go to the holder of the CRT at 12:00:01 am on the 1st day of the month, regardless of trading activity between the 1st and the day of the distribution for that month.