Revenue-Share Term
The contractual period during which CRT holders receive Monthly distributions from a Creator's YouTube revenue, as specified in the offering documents.
Understanding Revenue-Share Term
The revenue-share term is the defined contractual period during which Channel Revenue Token (CRT) holders are entitled to receive Monthly distributions from a Creator's YouTube revenue. This term is established at the time of the offering and is disclosed in the Form C filing and offering documents.
Revenue-share terms can vary between offerings. Some CRT offerings may specify a fixed period such as three years, five years, or ten years, while others may have different structures. The specific term for each offering is a critical factor that Investors should evaluate during their due diligence process, as it directly affects the total duration of potential distributions.
During the revenue-share term, the Creator is contractually obligated to share the specified revenue percentage of their YouTube revenue with CRT holders through Monthly distributions. When the revenue-share term expires, the obligation to distribute revenue to CRT holders ends, and the CRTs no longer carry distribution rights.
Investors should carefully consider the revenue-share term in relation to the offering price and the Creator's historical revenue when evaluating a CRT investment. A longer revenue-share term provides a greater window for potential distributions, but it also introduces more uncertainty about the Creator's future channel performance and the broader YouTube ecosystem.
The revenue-share term is a fixed contractual provision that cannot be altered after the offering closes. Both the Creator and the CRT holders are bound by the terms established in the offering documents for the full duration of the agreement.
Investors should note that the revenue-share term is separate from the 12-month holding period required before CRTs can be traded on the Secondary Market.
Key Points to Remember
- Revenue-Share Term 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
Channel Revenue Token (CRT)
A security representing contractual rights to receive a share of a YouTube Creator's potential future revenue, offered through GigaStar's SEC-registered platform.
Distribution
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.
Form C
An SEC filing required for all Regulation Crowdfunding offerings. Contains offering details, financial statements, and risk factors for Investor review.
Holding Period
The mandatory 12-month period after purchasing CRTs during which they cannot be resold on the Secondary Market, as required by SEC regulations.
Offering Documents
The legal filings associated with a CRT offering, including Form C, offering memorandum, and subscription agreement provided to Investors.
Revenue Percentage
The specific percentage of a Creator's YouTube revenue shared with CRT holders through Monthly distributions. Varies by offering and is disclosed in the Form C.
Revenue Share
A revenue share is the percentage of a YouTube Creator's revenue that is distributed Monthly to Investors who hold Channel Revenue Tokens (CRTs) purchased through GigaStar's platform.
YouTube Revenue
YouTube revenue is the income a Creator earns through the YouTube Partner Program from ads, memberships, Super Chat, and other monetization features, forming the basis for CRT distributions.
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.
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.
What happens if a Creator stops making videos?
If a Creator significantly reduces or stops content production, their YouTube revenue would likely decline, which directly reduces or eliminates your distributions. This is one of the key risk factors of CRT investing—your distributions depend on ongoing Creator activity and YouTube revenue generation. While existing videos may continue to earn some revenue, new content is typically the primary driver of channel performance.