U.S. President Donald Trump’s media firm is progressing with plans for its unprecedented shareholder token distribution, marking February 2 as the essential date to confirm eligibility for digital tokens.

The pivotal date, known as the “snapshot” date, designates that anyone owning at least one share in Trump Media and recognized as a “beneficial owner” or “registered holder” as of this date will qualify for the non-transferable digital rewards token, as the company disclosed on Tuesday.

Once the records are established, Trump Media will partner with the cryptocurrency exchange Crypto.com to create the tokens, present them on the blockchain, and hold them securely until they reach shareholders.

Token May Offer Discounts on Trump Products

Trump Media, which operates Donald Trump’s Truth Social platform, initially revealed its plans for a digital token for shareholders on December 31. The firm clarified that the token is not equivalent to a stock and does not confer shareholder rights or entitlement to the company’s profits. Furthermore, it will not be redeemable for cash or similar benefits. However, token holders could receive periodic discounts related to Trump Media products like Truth Social throughout the year.

This initiative aligns with a broader strategy to incorporate blockchain technology into Trump Media’s ecosystem.

Previously, there was a consideration for distributing one token per share, but the specifics about how this distribution will occur are still being finalized.

Token Airdrop Source: Solana Floor

Impact of Regulatory Guidance

Devin Nunes, Trump Media’s CEO and chairman, acknowledged in a statement that regulatory insights are influencing the implementation of the tokens. He stated, “We look forward to utilizing Crypto.com’s blockchain technology in accordance with SEC guidance to benefit our shareholders and enhance transparency, including establishing a clear understanding of genuine beneficial ownership as of the record date.”

Ownership Distribution of Trump Media Stock

As an update, Trump Media (DJT) stocks opened at $13.85 and peaked at $14.94 on Tuesday, achieving a gain exceeding 7%. However, by market closure, shares settled at $13.91. Investor platform Simply Wall St estimates that Trump Media has close to 280 million shares available, with approximately 41% held by individual insiders, 32% owned by the general public, and 23% by institutional investors.

Ownership Distribution Over 41% of Trump Media stock is estimated to be held by insiders. Source: Simply Wall St