CHLOM™ 2026: The Compliance Hybrid Licensing & Ownership Model

Technical, Legal & Investment Compendium

Status: RESTRICTED • CONFIDENTIAL • INTERNAL — CrownThrive LLC.

Do not distribute. Attorney–client privileged work product.

Prepared for: CrownThrive, LLC — 307 Payne Street, Gretna, VA 24557

Assignee (IP): CrownThrive, LLC (same address)

Inventors: [Intentionally left blank — to be completed by CrownThrive]

Media Director: Terrell Ayala

Last updated: October 26, 2025 (21:00 EDT)

0) Executive Overview (Abstract)

CHLOM™ (Compliance Hybrid Licensing & Ownership Model) is an AI‑driven, Substrate‑based metaprotocol that automates regulatory compliance, licensing, and digital ownership. It fuses: (i) a modular L1 ledger with upgradeable pallets for identity (DID/SBT), licensing (DLA), and marketplace exchange (LEX); (ii) an Adaptive Compliance Engine (ACE/AIE) for real‑time risk scoring, anomaly detection, and policy enforcement; and (iii) a Zero‑Knowledge layer (ZKX) that enables proof‑of‑compliance without disclosure. Packaged with DAO‑ready governance, programmable royalties, and cross‑chain attestations, CHLOM underpins CrownThrive’s ecosystem (60+ platforms), enabling privacy‑preserving, audited commerce across finance, media/IP, and real‑world assets. Investor lens: CHLOM targets the expanding RegTech and programmable IP markets with enterprise subscriptions, protocol licensing, and marketplace fees. Phase‑1 pilots (Q4’25) leverage CrownThrive integrations (e.g., AdLuxe, ThriveApps) and position CHLOM for rapid utility adoption in 2026.

1) Field of the Invention & Background

Field. Distributed‑ledger systems for automated licensing, compliance, and ownership, using AI/ML and zero‑knowledge cryptography. Problem. Manual, fragmented compliance regimes create cost, latency, and privacy risk. Licensing and IP monetization remain centralized, non‑programmable, and fraud‑prone. Cross‑border rules thwart scale. Objective. Make compliance and licensing programmable primitives—verifiable, privacy‑preserving, and enforceable at transaction time—while unlocking secondary markets (sublicensing, leasing, fractionalization) with built‑in royalties and dispute resolution.

2) System Overview & Architecture

CHLOM is a multi‑layer stack: 

+------------------------------+   Governance & Treasury Layer
|  DAO / Council / Timelocks  |   - Parameter votes, emergency halts
+------------------------------+
|      ACE / AIE (AI Layer)    |   - Risk scoring, anomaly detection,
|  Model registry, policy DSL  |   - bias/drift monitoring, HIL gates
+------------------------------+
|   ZKX (Zero-Knowledge Layer) |   - Age/geo/KYC proofs without PII
|   Circuits + on-chain verify |   - solvency / credential predicates
+------------------------------+
|  Runtime (Substrate Pallets) |   - DLA (licensing), LEX (exchange),
| DID/SBT, Escrow, Royalty DAG |   - Oracle, Scheduler, Revocation
+------------------------------+
|        L1 Ledger (Consensus) |   - PoS or nominated PoS; finality
+------------------------------+
|    API/SDK + Indexer + UI    |   - Wallets, dashboards, webhooks
+------------------------------+

Key Pallets (runtime modules).

  • DID/SBT: W3C‑aligned identity, non‑transferable credentials, revocation registry.
  • DLA (Decentralized Licensing Authority): Application → issuance → amendment → suspension → revocation; fee/stake checks; audit trails.
  • LEX (License Exchange): Listings, bids, leases/sublicenses, fractionalization; atomic escrow; royalty DAG; dispute hooks.
  • ZKX Verifier: On‑chain verification keys; circuit registry; proof replay protection.
  • Oracle Hub: Sanctions, geo, FX, rule updates; quorum & freshness checks.
  • Scheduler/Timelock: SLAs, expiries, staged rollouts; emergency halt with auto‑sunset.
  • Governance/Treasury: Bicameral option; budgets; grants; fee routing to security/sustainability.

3) Core Components (Deep Dive)

3.1 ACE / AIE — Adaptive Compliance Engine

Purpose. Enforce rules pre‑, during‑, and post‑transaction. Detect fraud; gate sensitive actions; generate audit artifacts. Signals. On‑chain graph features, temporal patterns, oracle inputs, behavioral biometrics (consented, hashed), and role/SBT state. Controls. Approve, quarantine, rate‑limit, or revoke via ADE (Autonomous Decision Engine). Lifecycle. Model cards → bias tests → drift alarms → HIL (human‑in‑loop) overrides → versioned rollout.

Pseudocode (stream check): 

for tx in block.transactions:
    p = extract_policy(tx.license_class)
    ok = ZKX.verify(tx.proof, p.required_predicates)
    if not ok:
        ADE.reject(tx, reason="proof_failure")
        continue
    r = AIE.score(tx, context=oracles.snapshot())
    if r.risk > p.threshold:
        ADE.freeze(tx, ttl=p.freeze_ttl)
        DAL.attest(tx, tag="flagged")
    else:
        ADE.execute(tx)
        DAL.attest(tx, tag="approved")

3.2 DLA — Decentralized Licensing Authority

  • Applications: DID‑bound submissions; fee/stake; credential checks (SBTs or ZK).
  • Issuance: NFT or SBT license; metadata: scope, term, geo, royalty schedule, revocation conditions.
  • Lifecycle: Amendments, suspensions, appeals, and revocations recorded immutably.
  • Evidence: Attestations + Merkle anchors for docs; exportable logs.

3.3 LEX — License Exchange

  • Markets: Sale, lease, sublicense, fractional shares.
  • Escrow: Atomic swap (funds ↔ license) gated by ACE+ZKX checks.
  • Royalty DAG: Deterministic splits; carry buckets; rounding safety.
  • Disputes: Time‑boxed evidence windows; arbitration module; on‑chain awards.

3.4 ZKX — Zero‑Knowledge Orchestration

  • Circuits: Age≥N; geo‑allowlist; license‑possession; solvency/balance; proof‑of‑compliance with policy hash.
  • Verifier: On‑chain VKs; anti‑replay; windowed validity.
  • Data Privacy: Off‑chain secrets; on‑chain commitments; GDPR/HIPAA‑aligned.

4) Identity, Credentials & Privacy

DID: User‑controlled keys; rotation; recovery; service endpoints. SBTs: Non‑transferable credentials for KYC, professional status, completion, accreditation; expiry and revocation recorded. Proof‑of‑Attributes: ZK range/combinator circuits; selective disclosure via predicate proofs. Evidence Vault: Encrypted blobs, integrity anchors, access audit.

5) Governance & Operations

Model. Bicameral path (tokenholder + curated council) with timelocks, quorums, and emergency powers with auto‑sunset. Treasury. Fee intake → routing to security, sustainability (Stripe Climate/EcoDrive), grants. Process. Proposal authoring → review windows → vote → ADE enactment (forkless). Risk Controls. COI disclosures, slashing for oracle misbehavior, staged parameter rollouts, kill‑switch boundaries.

6) Tokenomics (Dual‑Token Option)

  • CHM Utility: Fees, staking requirements for sensitive operations, bond for license classes, gas/weight markets.
  • Governance Token (optional): Voting power; lockups; participation rewards tied to audit/SLA performance.
  • Royalty Streams: Programmable splits; vesting cliffs; treasury skim; validator/attestor rewards.

7) Regulatory & Compliance Mapping (Snapshot)

  • Privacy: GDPR (lawful bases, DPIA), CCPA/CPRA (opt‑out, DSAR), HIPAA (where applicable).
  • Financial Crime: KYC/AML, FATF Travel Rule (oracle attestations), OFAC sanctions cache pallet.
  • Securities / Market: SEC/CFTC interfaces for tokenized rights (caution zones, restricted transfers).
  • Franchising: MM Suites: FDD references; regional licensing SBTs.
  • AI Governance: Model risk management (bias, explainability, incident reporting). Evidence Artifacts: Policy DSL → compiled rules → test vectors; attestation logs; proof receipts.

8) Security & Threat Model (STRIDE/LINDDUN)

Assets: Keys, proofs, VKs, policy hashes, license NFTs/SBTs, oracle roots, treasury. Threats: Oracle collusion; proof forgery; governance capture; MEV exploits; replay of stale proofs; KMS compromise. Controls: Multi‑sig councils; quorum oracles; VRF beacons; bounded halts; rate‑limits; circuit audits; formal specs for state machines; SIEM exports; red‑team drills. IR Playbooks: Keys compromise, oracle failure, proof bug, governance halt—RACI and disclosure timelines.

9) Market, Business Model & Financial Outlook

Segments: DeFi/stablecoin audits; IP/creator licensing; RWA; gaming/age‑gated; healthcare data exchanges. Pricing: Enterprise subscriptions ($3k–$250k/yr), protocol licensing, marketplace fees, compliance‑as‑a‑service (S‑CaaS). Go‑to‑Market: CrownThrive integrations (AdLuxe, ThriveApps, CrownLytics, ThriveSeat, CrownRewards); pilots with alumni and partners; SBIR/STTR grant lanes; SDVOSB capture. KPIs: Proof success latency; false‑positive rate; dispute resolution time; LEX GMV; royalty throughput; SLA adherence.

10) CrownThrive Ecosystem Integration

One Seat → Multiple Industries. CHLOM provides the compliance spine for:

  • AdLuxe: Compliant ad placements with licensed creatives; royalty tracking.
  • MM Suites: Franchise/operator credentials; bookings gated by valid health/business licenses; rewards SBTs.
  • CrownFluence & Ambassadors: Tokenized campaign rights; KYC‑gated payouts; FTC compliance policies in code.
  • ThriveU / Ecosystem Academy: Credential SBTs; tier unlocks; governance participation.
  • CrownLytics: Telemetry → ACE features; privacy budgeting; aggregate analytics.
  • LEX: Secondary markets for IP, permits, franchise rights; atomic escrow; dispute rails.

Flywheel (ASCII): 

Audience → Identity/DID → Licensed Access → Transactions →
Royalties/Rewards → Proofs & Attestations → Trust Score →
More Access/Capital → (loop)

11) Implementation Details

Tech Stack: Substrate (Rust/WASM), GraphQL/JSON‑RPC, PostgreSQL + columnar OLAP for indexers, KMS/HSM for keys, message‑bus for oracles, zk‑SNARK/STARK libraries with circuit CI. APIs: REST/GraphQL for queries; webhooks for events; SDKs (JS/Python). Performance Targets: Proof verify ≤ 150ms typical; LEX settlement TTF ≤ 2 blocks; ACE inference p95 ≤ 50ms on cached features. Ops: CI/CD with forkless runtime upgrades; canary networks; feature‑flagged rollouts; evidence export.

12) Use‑Case Walkthroughs

DeFi Solvency Audit: Exchange posts Merkle root of liabilities; prover generates zk‑proof: assets ≥ liabilities; ZKX verifies; attestation minted; public dashboard shows “pass” without books exposure. Age‑Gated Gaming: Player proves (age≥21 ∧ holds Gaming‑SBT) → ZKX pass → bet allowed; fraud triggers ACE → ADE bans DID; revocation recorded. RWA Fractional Title: Property deed → License NFT; fractions (ERC‑1155‑like) with transfer thresholds; KYC SBT required over X%; escrowed settlement; tax accrual hooks. Creator Royalty Splits: Music license minted with DAG splits; LEX trades stream royalties in real time; disputes arbitrated on‑chain.

13) Legal Posture & IP Strategy

Provisional Scope (this compendium). Technical enablement, method/system claims, figures, and integrated flows (ACE+DLA+ZKX+LEX). Continuation Families: Identity/SBT; ZK circuits; marketplace arbitration; treasury routing; AI model governance. Trade Secrets (register excerpt): Feature‑store schema, risk thresholds, ensemble features, fraud heuristics, proof batching strategies. Trademark Docket: CHLOM, LEX, ZKX, ACE, CrownThrive, ThriveBot, CrownLytics, etc. Classes & priority jurisdictions (to be filed).

14) Preliminary Claims (Representative)

  1. A method for on‑chain licensing comprising: receiving a DID‑bound application; verifying credentials with a zero‑knowledge proof; scoring risk via a machine‑learning model; and minting a license token upon satisfaction of predicates and thresholds.
  2. The method of claim 1 wherein credentials are encoded as soulbound tokens and revocation is enforced on‑chain.
  3. The method of claim 1 further comprising continuous monitoring and automatic revocation upon violation.
  4. A system comprising: a blockchain runtime with DLA and LEX pallets; a zero‑knowledge verifier; and an AI engine configured to gate transfers, escrow releases, and royalty distributions.
  5. The system of claim 4 wherein marketplace settlement is atomic conditional on proof validity and risk score below threshold.
  6. A zero‑knowledge compliance protocol verifying age, geo, solvency, or license possession without disclosure of underlying data.
  7. A royalty‑stream method distributing proceeds along a directed acyclic graph with rounding‑safety and carry buckets.
  8. A governance mechanism with timelocked execution and emergency halts that auto‑sunset.
  9. A method for fractional licensing of real‑world assets with KYC‑gated transfer thresholds and escrowed tax accrual.
  10. A computer‑readable medium storing instructions to perform any of the foregoing.

(Note: A fuller 50‑claim set is maintained in the utility‑prep annex.)

15) Figures (ASCII + Captions; vector line art in formal figures pack)

FIG.1 — Layered Architecture (see Section 2 diagram). FIG.2 — License Issuance Flow: 

User → App (DID) → DLA.apply → ZKX.prove(predicates)
      → ACE.score → {approve ⇒ DLA.mint, deny ⇒ reason}
      → DAL.attest(events)

FIG.3 — LEX Atomic Settlement: 

Bid/Ask lock → Escrow(funds, NFT) → ZKX.verify → ACE.check → swap or revert

FIG.4 — Royalty DAG: creators/labels/treasury nodes with weighted edges; streaming ticks. FIG.5 — Governance Timelock: proposal → vote → queue → execute; emergency‑halt window.

16) Risk, Ethics & Safeguards

Fairness: Model bias testing; appeal channels; explanations for adverse actions. Privacy: ZK‑first design; data‑minimization; encrypted evidence; purpose‑bounded retention. Safety: Kill‑switch scope limits; circuit audits; third‑party reviews; transparent incident reports.

17) Roadmap & Milestones

Q4 2025: Phase‑1 pilots; provisional filing; initial circuits (age/geo/license). Q1–Q2 2026: LEX beta; solvency circuits; enterprise SDK; regulator sandboxes. 2026–2027: DAO transition; cross‑chain attestations; RWA verticals; external validator program.

18) CrownThrive Alignment & Messaging (Internal)

  • Positioning: “Compliance by code; ownership with privacy.”
  • Proof: Real integrations across AdLuxe, MM Suites, ThriveU, CrownLytics.
  • Moat: Policy DSL → proofs; ACE risk edge; ecosystem distribution (60+ properties).
  • Media: Central POC — Director of Media, Terrell Ayala (press windows coordinated with Legal Depot policies).
  • Document Handling: This file is RESTRICTED. Share only under MNDA. Use versioned exports for external diligence.

19) Appendices

  • A. API/SDK Snapshots (schemas, error codes, webhooks).
  • B. Circuit Catalog (predicates, CRS notes, performance targets).
  • C. Policy DSL Examples (human‑readable → compiled).
  • D. DPIA / MRM templates (filled exemplars for Phase‑1).
  • E. Trade Secret Register (excerpt) — separate sealed annex.
  • F. Formal Figures Pack — vector line drawings (FIG.1–FIG.N).
  • G. Assignment Memo (IP) — CrownThrive LLC as assignee; inventor fields blank pending execution.

RESTRICTED • CONFIDENTIAL • INTERNAL — Property of CrownThrive LLC.

Unlawful copying or disclosure prohibited.

Distribution under MNDA only.

Was this article helpful?

CHLOM + CrownThrive Master Compendium
Provisional Patent Application Draft — CHLOM Layer‑1 Metaprotocol & ComplianceVM