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VTSN Sovereign Entity Protocol

A Sovereign Entity Protocol defines the rules and behaviors inherent to a token and/or currency and the associated logical legal entity. Be sure to read the following Sovereign Entity Protocol thoroughly because the acquisition and trade of tokens and/or currency units will always be bound to the rules defined in the SEP.

It's a technical impossibility for the underlying network to violate the rules of the SEP now or at any time in the future. Furthermore, the hash of the Sovereign Entity Protocol is hard-baked into the ledger and transaction log as one of the first entries, which makes the SEP immutable.

Sovereign Entity Protocol for VFN

Following defines the entirety of the Sovereign Entity Protocol for Vertisan Fractal Networks.

Value Proposition

By purchasing tokens representing ownership of the SUDSLE legal entity known as "Vertisan Fractal Networks", you are purchasing a share of a continual stream of royalties paid as a yield from the collection of transaction fees for transaction rendering on all networks powered by Fractal Technology.

Token Types

There are four (4) type of tokens that constitute the entirety of Fractal Tokenized Equity:
- Protected Tokens
- Preferred Tokens
- Common Tokens
- Bearer Tokens (completely anonymous)

Supply Information

  • There is a global immutable supply of 100,000,000 (100-million) tokens
  • No additional tokens will ever be created, minted, or circulated
  • Each token represents fractional ownership of the total yield produced by the collection of transaction fees for all transactions on all Vertisan Fractal Networks worldwide running the VeNNeM protocol.

Following are the immutable quantities of each of the four token types:
- Protected Tokens: 5,000,000 tokens
- Preferred Tokens: 5,000,000 tokens
- Common Tokens: 85,000,000 tokens
- Bearer Tokens: 5,000,000 tokens

Individual Rules Enforced

  • Vertisan Fractal Networks is a SUDSLE logical legal entity
  • The opening price for public trading of tokens is $50 USD per token
  • Tokens can't sell for less than the current market price averaged over the past thirty days, minus 5%
  • Tokens can never be sold for less than a 5% loss compared to what you paid
  • Tokens can never be sold for less than the opening price for public trading
  • You can't liquidate your position within the first 12 months of public trading
  • Tokens require the minimum identity associated with the local home jurisdiction and laws regarding a SUDSLE entity
  • The minimum trading frequency allowed for the tokens is once every five minutes
  • Blacklisted entities cannot sell, trade, or exchange tokens until Fractal Network Arbitration clears the entity from the Blacklist
  • VFN uses the VeNNeM protocol as a consensus algorithm for rendering of transactions

Yield Amounts

The four (4) different classifications of tokens receive the following yield compared to each other. Yield is being represented by individual token quantity, not per denomination of token:
- Protected Tokens receive 2x yield
- Preferred Tokens receive 1.5x yield
- Common Tokens receive 1.0x yield
- Bearer Tokens receive 0.0x yield

Yield Payments

Yield payments are a threshold-based distribution job that triggers continually every time 100,000,000 dmu (Dark Matter Units) is accumulated. The 2023 USD equivalent of 100M dmu is $1,000,000,000 USD (1-billion). Upon trigger, the entire yield amount is equally divided according to the Yield Amounts schedule and distributed immediately to Cryptocases holding the VFN Equity Tokens.

All yield payments are paid as dmu (Dark Matter Units), which are stable coin digital assets that are 1:1 pegged to the US Dollar, circa January 1, 2024. Those Dark Matter Units can be traded, exchanged, or converted to any other VFN-DA22 digital asset.

As of this writing, the following VFN-DA22 digital assets are online and functional as permanent stores of value with the possibility of being used as common tender:
- Fractal USDT (USDTF)
- Vertisan Gold (VCDG)
- Liberty Dollars (LMD)
- Vertisan Game Coin (VGC)

Ring Contracts

The following Ring Contracts are enforced as part of the SEP.
- Supply Policies Enforcement (UUID: ab8r8fwskbxadmhbtpnydfvpgr0gchkdpmhs)
- Sell Price Enforcement (UUID: vsrqrgtnv4ck3q9ce0kj9pezf9npbzqzatrt)
- Sell Time Frame Rules (UUID: ab8r8f61ydc9urvq3nm8rf76fbt7wr3pr42e)
- Yield Distribution Job (UUID: vsrqrgpvgh15uwcyw8ewkzhzxv4cs2nn1atf)
- SUDSLE Legal Entity Compliance (UUID: wn9s9cds2qtbuqh0r8redm5fas8jvsvrsrb6)
- Global Blacklist Enforcement (UUID: tw171v9w4cjx6746kcgwdz20ycdzm89scs0g)

Revision Information

SEP Version: 1.0
Last Updated: 2024-05-01