A Schelling-point Trigger for Smart Restructuring Tokens

TY - JOUR

T1 - A Schelling-point Trigger for Smart Restructuring Tokens

AU - Schillig, Michael

PY - 2025/3/30

Y1 - 2025/3/30

N2 - Smart Restructuring Tokens (SRTs) offer a restructuring solution for any firm that issues financial assets in tokenised form. Whilst solving the ‘valuation problem’ and addressing the conflict between ex ante and ex post efficiency in a restructuring scenario, in the initial SRT proposal, the ‘trigger problem’ remained unresolved: it was for corporate management, acting in the best interest of equity, to initiate an automated restructuring, incentivised by the automated pay-off structure and reinforced by traditional legal remedies. The current paper addresses the ‘trigger problem' head on. It introduces a solution based on staking and the game-theoretical insights of Thomas Schelling. The result is a fully decentralized and automated restructuring solution based on smart contract technology and tokenisation.

AB - Smart Restructuring Tokens (SRTs) offer a restructuring solution for any firm that issues financial assets in tokenised form. Whilst solving the ‘valuation problem’ and addressing the conflict between ex ante and ex post efficiency in a restructuring scenario, in the initial SRT proposal, the ‘trigger problem’ remained unresolved: it was for corporate management, acting in the best interest of equity, to initiate an automated restructuring, incentivised by the automated pay-off structure and reinforced by traditional legal remedies. The current paper addresses the ‘trigger problem' head on. It introduces a solution based on staking and the game-theoretical insights of Thomas Schelling. The result is a fully decentralized and automated restructuring solution based on smart contract technology and tokenisation.

KW - smart contracts, restructuring, Schelling-point, trigger

M3 - Article

JO - Journal of Business Law

JF - Journal of Business Law

ER -