Stock option can become more of a liability than an asset for the employees in a start-up, if employees are unable to dispose off their share of stock options/ shares as and when they need. The main concern with todays start-up issued stock options is illiquidity, even though it is a compensation element for an employee they are not able to benefit from stock options until a point of time in future, median age of start-ups to IPO was seen as 8 years from 2010 to 2016.
Providing liquidity to the stock options in the form of security tokens can disrupt and revolutionize the employee equity distribution pre and post IPO, through tokenization the stock options can be freely traded on DLT reducing the efforts by enabling automation and bringing in liquidity to the market that was restricted or accessible to few.