[Narrator]

Hello everyone, welcome back to the TokenMinds Training series.
Today we’ll walk through how to structure a Token Generation Event under the proposed CLARITY Act framework using the TMX TGE system.

Most token launches still follow the old model.
Teams decide supply and price first, raise funds, then think about compliance later.

But as shown on page 2, the CLARITY Act passed the U.S. House and signals that every U.S. token offering will fall inside a defined legal structure.

This means compliance can no longer be an afterthought.
It must be built in from day one.

As illustrated on page 3, a compliant TGE is not one event. It is five connected phases.

First, classify the token.
Second, build the compliant platform.
Third, run sale stages with enforcement.
Fourth, maintain a full audit trail.
Fifth, plan for network maturity.

Each phase locks in the next.

First, what is the value source?

Does the token gain value from a decentralized network, or mainly from the efforts of the founding team?

Second, what rights do holders receive?

Do they have governance influence, or something closer to ownership control?

Third, does the token pay returns, dividends, or create a creditor claim?

If the token pays returns or gives holders a claim on revenue, it is treated as a security. That means full SEC registration is required, and exemptions may not apply.

This legal clarity must come before fundraising, not after.

There is a $75 million cap on total token sales within any 12-month period.

No single buyer can purchase more than 10 percent of the total supply.

These limits cannot be tracked in spreadsheets or reviewed once a week.

They must be enforced in real time by the platform itself.

TMX TGE by TokenMinds is designed for this purpose.

It automatically enforces stage-level caps and contribution limits.

It integrates KYC and AML verification against government-issued documents before any purchase is approved.

Compliance must be built into the system before the first dollar is accepted.

When no single entity holds 20 percent or more of token supply or voting power, the token may qualify as a digital commodity. At that stage, oversight can shift from the SEC to the CFTC.

This affects exchange eligibility and institutional participation.

To prepare for this, the structure must include:

Vesting schedules that prevent early team concentration.

A 10 percent single-buyer cap enforced automatically at transaction level.

Governance design that distributes voting power across a broad holder base from launch.

Network maturity is not something you retrofit later.

It must be designed into tokenomics from the start.

Many teams understand regulatory direction but lack the infrastructure to prove compliance.

TMX TGE provides:
Investor KYC and compliance verification.
Secure crypto and fiat payment processing.
Automated token allocation.
Real-time settlement and payouts.
Regulator-ready reporting.

If you are ready to structure your TGE under the proposed CLARITY framework with enforcement built directly into your platform, reach out to TokenMinds.

Thank you for watching and see you in the next training video.