CHLOM™ Royalty Streaming Engine (RSE) Whitepaper

Version 1.4 | CrownThrive, LLC (Full IP Ownership) Tagline: "Perpetual Flow. Transparent Value. Autonomous Reward."

Audience & Scope

This whitepaper defines the CHLOM™ Royalty Streaming Engine (RSE) — a core financial subsystem of the CHLOM Framework (Compliance Hybrid Licensing & Ownership Model), built to automate real-time, multi-party royalty distribution through programmable logic and verifiable compliance.

The RSE bridges ADE (Attribution & Distribution Engine), DLA (Decentralized Licensing Authority), Treasury Engine, and DAL (Decentralized Attestation Layer), forming a unified streaming economy for creators, institutions, and IP holders.

It ensures royalties are distributed instantly, fairly, and transparently — with every transaction backed by cryptographic proof, AI-driven attribution, and sustainability-linked impact funding.

0. Introduction

“Royalties shouldn’t wait for quarters. They should stream in seconds.”

The Royalty Streaming Engine (RSE) converts static licensing models into living economic contracts. By embedding programmable rules within the ADE and DLA layers, RSE delivers perpetual, automated, and compliance-verified royalty flows to all stakeholders — creators, rights-holders, distributors, and collaborators.

Unlike traditional systems that require manual payout cycles, RSE continuously streams royalties according to real-time data: viewership, engagement, usage, or transaction events. Each micro-distribution is logged in DAL as a Royalty Attestation Record (RAR), ensuring permanent transparency.

1. Architectural Overview

2. Core Objectives

1. Enable real-time royalty streaming across digital licenses.
2. Automate multi-party payout logic with weighted attribution.
3. Maintain on-chain auditability through DAL attestations.
4. Integrate compliance verification (ACE risk scoring).
5. Support sustainability hooks for every royalty stream.

3. System Architecture

3.1 High-Level Diagram

┌────────────────────────────┐
│   Royalty Streaming Engine │
├─────────────┬──────────────┤
│   ADE Link  │   DLA Link   │
├─────────────┼──────────────┤
│   ACE Risk  │   DAL Proof  │
└─────────────┴──────────────┘
       │
       ▼
┌────────────────────────────┐
│   Smart Royalty Contracts  │
└────────────────────────────┘

3.2 Smart Contract Framework

Each royalty stream is a programmable flow contract with dynamic weighting, real-time triggers, and immutable logging.

pub struct RoyaltyStream {
    pub stream_id: Hash,
    pub license_ref: Hash,
    pub recipients: Vec<Party>,
    pub allocation_weights: Vec<f32>,
    pub current_balance: Balance,
    pub stream_frequency: u64, // seconds
    pub last_payout: u64,
    pub sustainability_hook: Option<EnvHook>,
    pub zk_proof: Option<ZkProof>,
}

pub struct Party {
    pub did: DID,
    pub share_percentage: f32,
    pub verified: bool,
}

4. Royalty Streaming Flow

4.1 Process Flow

[DLA License Issuance] → [ADE Attribution Mapping] → [RSE Stream Initialization] → [ACE Compliance Check] → [DAL Proof of Distribution]

4.2 Event Logic

fn initiate_stream(license_ref: Hash, recipients: Vec<Party>) {
    ACE::verify_terms(license_ref);
    Treasury::reserve(amount_estimate(license_ref));
    RSE::activate_flow(recipients);
}

fn distribute_royalty(stream_id: Hash) {
    for p in RoyaltyStream::recipients(stream_id) {
        Treasury::transfer(p.did, stream_weighted_amount(stream_id, p));
        DAL::record_attestation(stream_id, p.did);
    }
}

5. Dynamic Royalty Streams

RSE supports continuous payout adaptation — royalties adjust dynamically to data provided by Oracles and ACE:

• Usage-Based Streaming: Payment scales with consumption data (e.g., streams, views, sales).
• Event-Based Triggers: Royalties activate upon predefined milestones.
• AI Attribution Adjustments: ACE recalibrates weighting based on real-time engagement analytics.

5.1 Adaptive Distribution Algorithm

fn adaptive_distribution(event: UsageEvent) -> f32 {
    let base = ADE::base_weight(event.asset_id);
    let adjustment = ACE::engagement_score(event.asset_id) * 0.1;
    base + adjustment
}

6. Integration with CHLOM Layers

7. Royalty Governance (R-DAO)

The Royalty DAO (R-DAO) governs streaming protocols, weight parameters, fee structures, and licensing integrations.

7.1 DAO Functions

fn propose_stream_policy(stream_type: StreamType)
fn vote_on_policy_change(policy_id: Hash)
fn adjust_frequency(stream_id: Hash, new_rate: u64)

8. Sustainability Hooks & EcoFunding

Each royalty stream can automatically allocate a percentage to environmental or social good initiatives.

8.1 Example Hook Logic

fn sustainability_allocation(amount: Balance) {
    let eco_share = amount * 0.01;
    EcoDrive::fund_project("kelp_forest_2025", eco_share);
    StripeClimate::offset_carbon(eco_share);
}

8.2 Real-Time Examples

• Music Streams: 1% funds ocean cleanup.
• Film Licensing: 2% plants rainforest trees.
• Digital Art Sales: 0.5% supports local creative grants.

9. Compliance and Legal Integrity

• ACE Integration: Every payout must pass compliance checks before disbursement.
• DID Verification: All recipients are verified by the DLA identity registry.
• DAL Proof Logging: Every transaction recorded as immutable attestation.

9.1 Pseudocode: Compliance-Enforced Payment

if ACE::approve_payment(stream_id, p.did) {
    Treasury::transfer(p.did, amount);
} else {
    ACE::flag_transaction(stream_id, p.did);
}

10. Technical Security Architecture

10.1 Stream Validation Example

fn validate_stream(stream_id: Hash) -> bool {
  verify_zk_proof(RSE::stream_proof(stream_id)) &&
  ACE::risk_score(stream_id) < 0.8
}

11. Economic Mechanics

11.1 Fee Structure

11.2 Yield Mechanism

Royalty liquidity can be temporarily staked in the Treasury Yield Engine between payouts, generating passive return for holders.

11.3 Payout Latency Metrics

• Streaming Interval: 1–60 seconds configurable.
• Transaction Verification Time: <2 seconds.
• Proof Anchoring: <5 seconds in DAL.

12. Appendices

Appendix A — ASCII Architecture Overview

DLA → ADE → RSE → DAL
│        │       │
ACE ↔ Treasury ↔ Oracles ↔ CSN

Appendix B — Royalty Attribution Example

{
  "stream_id": "0xA7B3F...",
  "recipients": [
    {"did": "did:creator:john_doe", "share": 0.5},
    {"did": "did:producer:media_house", "share": 0.3},
    {"did": "did:platform:melanatedtv", "share": 0.2}
  ],
  "interval": 30,
  "eco_hook": "EcoDrive::rainforest",
  "jurisdiction": "Global"
}

Appendix C — Royalty Adjustment Pseudocode

fn adjust_share(stream_id: Hash, participant: DID, new_share: f32) {
    if RDAO::approve_change(stream_id, participant) {
        RSE::update_allocation(stream_id, participant, new_share);
    }
}

13. Performance & Scalability Metrics

• Concurrent Streams: 1,000,000+ per chain shard
• Settlement Time: ≤ 3 seconds
• Data Throughput: 5,000 royalty events/sec
• Proof Finalization: ≤ 8 seconds (DAL-1 anchoring)

14. Roadmap

15. Closing Statement

The CHLOM™ Royalty Streaming Engine (RSE) transforms passive royalties into an active, living economy — one where ownership, usage, and compensation coexist in perfect synchrony.

Through smart contracts, AI validation, and continuous compliance, the RSE eliminates delays, intermediaries, and opacity — ensuring creators are rewarded as the world engages, not months later.

“Every second of engagement becomes a second of income.”

CrownThrive, LLC retains full intellectual property ownership until DAO Epoch 3 decentralization, when the R-DAO and verified stakeholders assume collective governance of the streaming economy.

Prepared for: CrownThrive LLC | CHLOM™ Framework R&D Version: 1.4 — Royalty Streaming Engine (RSE) Whitepaper Classification: Public Technical Disclosure (Pending Patent Filing) All Rights Reserved © CrownThrive LLC

End of Document — CHLOM™ Royalty Streaming Engine (RSE) Whitepaper (Full Edition)