(Budihal Base Foundation, August 2025)

1. Purpose

To determine the most effective structure for raising USD 1M for Ramesh Budihal’s 10-year surfing journey, by evaluating:

• Issuance model: Fungible Token (ERC-20) vs. NFT Collection (ERC-721/1155).
• Jurisdiction: Abu Dhabi Global Market (ADGM, FSRA) vs. Dubai (VARA).
• Hybrid approach: Combining ADGM incorporation with a VARA launch.

2. Issuance Options

A. Fungible Token (ERC-20)

• Design: 10,000 identical tokens, each representing 1 coaching hour.
• Regulatory Position: Requires FSRA Accepted Virtual Asset (AVA) designation in ADGM.
• Pros: High liquidity, exchange listing potential, familiar to institutional investors.
• Cons: High compliance burden, 6–9 month launch delay, weaker storytelling.

B. NFT Collection (ERC-721/1155)

• Design: 10,000 NFTs, each redeemable for 1 coaching hour, with unique artwork tied to Ramesh’s journey.
• Regulatory Position:
  • In ADGM: Treated as digital collectibles, lighter compliance (AML/KYC required).
  • In Dubai: Classified as Virtual Assets, requiring VARA licence for issuance.
• Pros: Strong storytelling, faster to market (2–3 months), fan engagement, lower compliance costs in ADGM.
• Cons: Lower liquidity, resale tied to NFT marketplaces, some institutional investors may prefer fungible tokens.