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For Investors Glossary Term

Distribution

Definition

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.

Understanding Distribution

Distributions are the Monthly payments that Investors receive when they hold Channel Revenue Tokens (CRTs) purchased through GigaStar's platform. Each month, the YouTube Creator's revenue is calculated, and the agreed-upon revenue share percentage is distributed proportionally among all CRT holders for that Creator's offering.

The distribution process begins when YouTube pays the Creator for their channel's earnings. GigaStar then calculates the revenue share amount based on the percentage specified in the offering documents. This amount is divided among all outstanding CRTs for that Creator, and each Investor receives their proportional share as a Monthly distribution deposited into their GigaStar account.

The amount of each Monthly distribution will vary depending on the Creator's YouTube revenue performance during that period. YouTube revenue can fluctuate based on seasonal advertising trends, changes in viewership, content publishing frequency, and broader market conditions affecting digital advertising rates. There is no fixed distribution amount, and no distributions are assured.

It is critical for Investors to understand that distributions are never assured. CRTs are speculative securities, and there may be months where distributions are lower than expected or where Creator revenue declines significantly. Factors such as demonetization, channel strikes, changes to YouTube's Partner Program policies, or a Creator's decision to reduce content output can all impact distribution amounts. Investors should review all risk factors in the Form C filing before purchasing CRTs and should not rely on distributions as a consistent source of income.

Key Points to Remember

  • Distribution 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

Frequently Asked Questions

Are CRTs cryptocurrency?

No. CRTs are traditional securities registered with the SEC under Regulation Crowdfunding. They represent contractual rights to a share of a Creator's YouTube revenue, not a digital currency or blockchain token. Unlike cryptocurrency, CRTs have regulatory oversight from the SEC and FINRA, required disclosure documents (Form C), and Investor protections built into the offering structure.

Do I have to pay back Investors?

You don't make direct payments to Investors. GigaStar handles all distribution processing. A percentage of your YouTube revenue is automatically shared with CRT holders as Monthly distributions. If your revenue decreases, distributions decrease proportionally—there is no fixed amount owed.

What happens after the revenue share term ends?

When the contractual term expires (e.g., after 3 or 5 years), distributions to CRT holders cease, and you no longer share YouTube revenue with those Investors. CRTs associated with that offering expire, and you retain 100% of your YouTube revenue going forward.

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