Primary Participation

Primary participation describes the economics at initial issuance or first licensing of a DCO/right instrument.

Common structures

Fixed-price licence, negotiated licence, auction, subscription, usage commitment, retained reserve, exclusive/non-exclusive field rights, or a combination.

Control

The issuing Entity must have authority to issue the represented right. The transaction should bind the exact instrument version/terms and produce settlement evidence rather than relying on an editable listing description.

Accounting boundary

An offer price is not realized revenue. Contracted consideration, accrued amounts, settled amounts and recognized accounting revenue are distinct states.