Smart Capital in CHLOM: Architecture & Implementation

Smart Capital in CHLOM: Architecture & Implementation

Smart Capital enables creators and companies to raise funds, monetize future revenue streams and structure complex financial instruments using tokenized assets. The goal is to unlock liquidity for license holders and projects while remaining compliant, transparent and efficient.

Design Goals

  • Capital Efficiency: Maximize available liquidity from tokenized assets and cash flows.
  • Flexibility: Support equity, debt, revenue-sharing and hybrid instruments.
  • Compliance: Enforce securities, KYC/AML and investor protection rules.
  • Transparency: Provide clear tracking of issuance, ownership and repayment.
  • Interoperability: Integrate with TLaaS, LEX and DeFi protocols.

Core Components & Considerations (30 items)

  • Token Standards: Choose ERC‑20, ERC‑733, ERC‑1400 or other standards for representing capital instruments.
  • Asset Registry: Maintain a registry of underlying assets (licenses, IP, revenue streams) that back the capital instruments.
  • Investor Onboarding: Integrate KYC/AML workflows and accreditation checks for investors.
  • Issuance Smart Contract: Implement contract logic for creating, distributing and managing tokens.
  • Subscription & Allocation: Handle oversubscriptions, allocation rules and waitlists.
  • Escrow & Custody: Secure investor funds until issuance conditions are met.
  • Revenue Sharing Logic: Define how future revenues are distributed to token holders.
  • Debt Terms: Set interest rates, maturity dates, covenants and repayment schedules.
  • Equity Rights: Provide voting, dividends and liquidation preferences as needed.
  • Fractionalization: Allow splitting large assets into fractional tokens for broader participation.
  • Vesting & Lockups: Implement time-based release of tokens to align incentives.
  • Secondary Trading: Enable token trading on LEX or other marketplaces with compliance checks.
  • Pricing & Valuation: Determine initial offering price and ongoing valuation mechanisms.
  • Collateral Management: Support collateralized loans and margin requirements.
  • Risk Assessment: Integrate risk scoring models to price debt and evaluate asset quality.
  • Royalty Routing: Tie tokenized capital instruments to royalty streams via smart contracts.
  • Payment Splitting: Automate distribution of repayments to investors according to share.
  • Reporting & Disclosures: Provide dashboards and disclosures to investors and regulators.
  • Governance Rights: Implement on-chain governance for certain instruments (e.g. voting on covenants).
  • Regulatory Compliance: Build compliance hooks for securities laws, tax reporting and jurisdictions.
  • Legal Documentation: Generate term sheets, prospectuses and token purchase agreements.
  • Cross-Chain Bridge: Enable capital tokens to move across compatible chains.
  • Liquidity Pools: Provide liquidity via automated market makers or bonding curves.
  • Redemption & Buybacks: Support token redemption, repurchase and debt payoff functions.
  • Dispute Resolution: Integrate override routers and arbitration mechanisms.
  • Transparency & Auditing: Use verifiable logs and proofs to audit flows and compliance.
  • Risk Mitigation: Offer insurance or reserves to cover defaults or revenue shortfalls.
  • Tax Handling: Automate withholding, reporting and distribution of taxes on yields.
  • SDK & APIs: Provide developer tools for issuing, trading and managing capital tokens.
  • Analytics & Monitoring: Capture metrics on trading volumes, investor demographics and performance.

Implementation Steps

  1. Define Instrument Structure: Decide whether you are issuing equity, debt, revenue-sharing tokens or a hybrid instrument and select the appropriate token standard.
  2. Create the Asset Registry: Document and tokenize the underlying assets/licences that will back the capital raise.
  3. Develop Issuance Contracts: Code smart contracts for token minting, allocation, vesting schedules, and payment routing.
  4. Integrate KYC/AML: Build investor onboarding flows that verify identity, accreditation and jurisdiction eligibility.
  5. Set Up Escrow & Custody: Design custody arrangements to hold investor funds until closing conditions are met.
  6. Launch Subscription Portal: Build a front end where investors can subscribe, sign agreements and transfer funds.
  7. Enable Secondary Trading: Register the new instrument on the License Exchange (LEX) and integrate compliance checks for trades.
  8. Configure Reporting & Governance: Provide dashboards for investors to track performance and participate in governance votes.
  9. Test & Deploy: Audit the contracts, run security tests, deploy to testnet and mainnet and monitor post-launch.

Conclusion

Smart Capital unlocks new funding models for creators and businesses in the CHLOM ecosystem, enabling flexible financial instruments while enforcing compliance and transparency. By following these guidelines and leveraging CHLOM’s core infrastructure (TLaaS, LEX, compliance modules), developers can build secure and scalable capital raising solutions.

Comprehensive guide to Smart Capital in the CHLOM ecosystem covering design goals, 30 core components and considerations, implementation steps and best practices for compliant, flexible and transparent capital raising.

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