CHLOM™ Smart Capital Engine (SCE) Whitepaper

Version 1.4 | CrownThrive, LLC (Full IP Ownership) Tagline: “Capital that thinks, governs, and grows responsibly.”

Audience & Scope

The Smart Capital Engine (SCE) is the autonomous financial orchestration layer of the CHLOM™ ecosystem — where capital allocation, yield generation, and liquidity provisioning are governed by algorithmic compliance and AI-assisted intelligence. It acts as the economic core of CrownThrive’s decentralized incubator, ensuring that all capital movement — investment, lending, reward, or redistribution — remains compliant, traceable, and auditable under CHLOM’s hybrid AI-governance model.

SCE integrates directly with:

• Treasury Engine – fund storage, routing, and streaming
• ACE (Adaptive Compliance Engine) – continuous risk and jurisdictional evaluation
• DAL (Decentralized Attestation Layer) – immutable proof-of-capital flows
• S-CaaS (Smart Compliance-as-a-Service) – automated rule validation
• SYFP (Smart Yield Farming) – reward optimization
• STSP (Timelock Scheduler) – SLA-bound release and lock conditions
• Y-DAO (Yield & Treasury DAO) – decentralized policy governance

0. Introduction

“The future of finance isn’t decentralized anarchy — it’s accountable autonomy.”

The CHLOM Smart Capital Engine is designed to manage liquidity like a regulator, invest like a DAO, and distribute like a smart contract. It turns every dollar, token, or NFT into a programmable asset with embedded rules, enforcing how it moves, when it matures, and who it can legally reach.

This allows enterprises, DAOs, and incubators to operate under autonomous treasury systems that obey legal frameworks without central control — creating a new class of compliant decentralized capital infrastructure.

1. Design Principles

1. Compliance-Native Finance: All capital movements adhere to ACE and DAL verification.
2. Programmable Governance: Policies coded as smart rules via DLA and DAO parameters.
3. Sustainable Liquidity: Yields derived from verifiable sources (not synthetic APY).
4. AI Optimization: Capital flows predicted, balanced, and reallocated by ACE + AIE models.
5. Timelocked Transparency: Every capital event logged in DAL with deterministic release.
6. ZK-Auditable Privacy: Value verified without revealing proprietary transaction data.

2. Architecture Overview

+----------------------------------------------------------------+
|              CHLOM Smart Capital Engine Architecture            |
+----------------------------------------------------------------+
|  SCE Core                                                       |
|   - Liquidity Pool Manager                                      |
|   - Investment & Lending Hub                                    |
|   - Risk & Compliance Gate (ACE + S-CaaS)                       |
|   - DAL Attestation Bridge                                      |
|   - Treasury Routing System                                     |
|   - AI Capital Optimizer (AIE)                                  |
|   - SLA/Timelock Scheduler (STSP)                               |
+----------------------------------------------------------------+
         ^                ^                 ^               ^
         |                |                 |               |
        ACE              DAL               Treasury       DLA
         |                |                 |               |
         +-----------> Oracles + Y-DAO <--------------------+

3. Core Data Structures

pub type CapitalId = Hash;
pub type Did = BoundedVec<u8, ConstU32<64>>;
pub type RegionCode = [u8; 2];
pub type BasisPoints = u16;
pub type RiskScore = u8; // 0–100

#[derive(Encode, Decode, Clone, PartialEq, Eq)]
pub enum CapitalType {
    TreasuryReserve,
    InvestmentFund,
    YieldVault,
    LendingPool,
    DAOAllocation,
}

#[derive(Encode, Decode, Clone, PartialEq, Eq)]
pub struct CapitalRecord<AccountId, Moment> {
    pub id: CapitalId,
    pub source_did: Did,
    pub capital_type: CapitalType,
    pub total_amount: u128,
    pub allocated_amount: u128,
    pub jurisdiction: RegionCode,
    pub risk_score: RiskScore,
    pub start_at: Moment,
    pub unlock_at: Option<Moment>,
    pub compliant: bool,
}

4. Storage Layout

CapitalRegistry<T>: Map<CapitalId → CapitalRecord<T::AccountId, T::Moment>>
Allocations<T>: DoubleMap<CapitalId, T::AccountId → u128>
CapitalFlows<T>: Map<Hash → (CapitalId, u128)>
ComplianceCache<T>: Map<CapitalId → bool>
CapitalHistory<T>: Map<CapitalId → Vec<Hash>>
GlobalCapitalVersion<T>: u64

5. Config Trait

#[pallet::config]
pub trait Config: frame_system::Config {
    type RuntimeEvent: From<Event<Self>> + IsType<<Self as frame_system::Config>::RuntimeEvent>;
    type Moment: AtLeast32BitUnsigned + Copy;
    type Balance: AtLeast32BitUnsigned + Copy + FixedPointOperand;
    type Treasury: TreasuryInterface<Self>;
    type DAL: DalInterface<Self>;
    type ACE: AceInterface<Self>;
    type DLA: DlaInterface<Self>;
    type SCAAS: ComplianceServiceInterface<Self>;
    type STSP: TimeSchedulerInterface<Self>;
    type Oracles: OracleInterface<Self>;
    type WeightInfo: WeightInfo;
}

6. Extrinsics

#[pallet::call]
impl<T: Config> Pallet<T> {
    pub fn register_capital(origin, record: CapitalRecord<T::AccountId, T::Moment>) -> DispatchResult;
    pub fn allocate_capital(origin, capital_id: CapitalId, receiver: T::AccountId, amount: u128) -> DispatchResult;
    pub fn reallocate(origin, capital_id: CapitalId, new_receiver: T::AccountId, amount: u128) -> DispatchResult;
    pub fn close_capital(origin, capital_id: CapitalId) -> DispatchResult;
    pub fn audit_compliance(origin, capital_id: CapitalId) -> DispatchResult;
}

7. Events and Errors

Event:
  CapitalRegistered(CapitalId, CapitalType)
  CapitalAllocated(CapitalId, AccountId, u128)
  CapitalReallocated(CapitalId, AccountId, u128)
  CapitalClosed(CapitalId)
  ComplianceVerified(CapitalId, bool)
  DALAttestation(CapitalId, Hash)

Error:
  CapitalNotFound
  NotAuthorized
  InsufficientFunds
  NonCompliant
  TreasuryError
  DALProofFailed

8. Compliance Verification Logic

fn audit_compliance(capital_id: CapitalId) -> DispatchResult {
    let mut cap = CapitalRegistry::<T>::get(&capital_id).ok_or(Error::<T>::CapitalNotFound)?;
    let region_ok = T::ACE::verify_policy(cap.jurisdiction);
    let risk_score = T::ACE::calculate_risk(cap.source_did.clone(), cap.jurisdiction);
    ensure!(risk_score < 75 && region_ok, Error::<T>::NonCompliant);

    cap.compliant = true;
    cap.risk_score = risk_score;
    CapitalRegistry::<T>::insert(&capital_id, cap.clone());
    T::DAL::attest_capital_verification(capital_id);
    Self::deposit_event(Event::ComplianceVerified(capital_id, true));
    Ok(())
}

9. Treasury Routing Logic

Each capital record is tied to a smart escrow in the Treasury system:

fn allocate_capital(capital_id: CapitalId, receiver: T::AccountId, amount: u128) -> DispatchResult {
    let mut cap = CapitalRegistry::<T>::get(&capital_id).ok_or(Error::<T>::CapitalNotFound)?;
    ensure!(cap.allocated_amount + amount <= cap.total_amount, Error::<T>::InsufficientFunds);

    T::Treasury::transfer(receiver.clone(), amount.into());
    cap.allocated_amount += amount;
    CapitalRegistry::<T>::insert(&capital_id, cap.clone());

    T::DAL::attest_capital_flow(capital_id, amount);
    Self::deposit_event(Event::CapitalAllocated(capital_id, receiver, amount));
    Ok(())
}

All fund transfers are accompanied by DAL proofs — effectively creating financial KYC fingerprints on-chain without revealing identities.

10. AI Capital Optimization

Using the AIE (Anomaly Intelligence Engine), SCE monitors capital flow patterns:

• Detects underutilized or idle liquidity pools
• Predicts yield decay and rebalances assets
• Identifies overexposure in risky jurisdictions
• Optimizes allocations to low-risk, high-performance nodes

AIE outputs a Capital Optimization Score (COS) every epoch, guiding Y-DAO decisions.

11. S-CaaS Integration

S-CaaS continuously validates that each capital allocation remains within the legal and jurisdictional boundaries defined by:

• FATF recommendations
• AML/CTF global frameworks
• Digital asset service laws
• Sectoral compliance (e.g., SEC, MiCA, FCA)

Violations result in automatic capital freezes (via Treasury hooks) and are logged as Compliance Violations (CVPs) in DAL.

12. Governance (Crown Capital DAO – CC-DAO)

The Crown Capital DAO (CC-DAO) manages SCE policy decisions:

All governance actions stored as Capital Governance Proofs (CGPs) in DAL.

13. SLA & Timelock Integration

These create predictable financial windows, allowing DAOs to operate like decentralized funds with real-world accountability.

14. Security Model

15. Example Flow: DAO Fund Allocation

1. CrownThrive DAO deposits $1M into Smart Capital Engine.
2. SCE audits compliance via ACE → jurisdiction “US-VA” verified.
3. Treasury holds $1M in smart escrow → DAL anchors proof.
4. CC-DAO approves 40% reallocation to SYFP Yield Pool.
5. AIE rebalances positions dynamically based on risk and return.
6. DAL records all flows with timestamped proofs.
7. Monthly audit triggers ACE rescore and Y-DAO yield report.

Every capital motion, yield event, and jurisdictional check forms part of the CHLOM Economic Ledger (CEL) — a unified record of lawful liquidity.

16. ASCII Diagram

CrownThrive Treasury
      |
      v
   SCE Engine
      |
      +--> ACE Compliance Check
      |       |
      |       v
      |     DAL Attestation
      |
      +--> Treasury Smart Escrow
      |
      +--> AIE Optimization
      |
      +--> DAO Governance Approval

17. Performance Metrics

Processing capacity: 30,000+ allocations per block Average audit finality: <5 seconds AI optimization loop: Every 10 minutes (off-chain → on-chain sync)

18. Roadmap

19. Closing Statement

The CHLOM™ Smart Capital Engine (SCE) is the financial conscience of decentralized enterprise. It merges liquidity and legality into a single programmable layer — capable of scaling global markets without abandoning compliance, ethics, or transparency.

By embedding governance, risk, and attestation into every transaction, CHLOM’s Smart Capital Engine ensures that decentralization never drifts into disorder — it remains measurable, lawful, and self-sustaining.

“Smart capital isn’t about how much you have — it’s about how precisely it moves.”

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

End of Document — CHLOM™ Smart Capital Engine (SCE) Whitepaper (Full Edition)