In the context of traditional business, equity typically involves the distribution of ownership in a company through the issuance of common stock, granting shareholders voting rights and a share of the company's profits in proportion to their ownership stake. Equity in the world of web3 takes on a different identity and comes in the form of equity tokens, making management and transfers more efficient and transparent.

Equity tokens are an on-chain representation of stake in a company, entitling token holders a part in the company's earnings, assets and potentially governance. They can be transferred directly to a recipient’s digital wallet, cutting out the middleman and saving time and money. In a survey of startups that chose to employ tokenized equity, 60% saw a rise in employee retention.

By offering a tangible and accessible form of ownership in a company, tokenized equity boosts employee’s commitment to their place of work. In order to see their tokens appreciate in value, employees are dedicated to the long-term success of the business. This results in heightened employee retention as they are driven to stay with the company and contribute to its growth.