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Decentralized Entity. An immutable association of a set of nodes.

Decentralized Entities

Digital, Smart and Decentralized Entities on the Blockchain

RE EL

Decentralized Entities

A set of nodes associated under a ‘smart’ programmable agreement on the blockchain.

A decentralized entity is an immutable global agent locally powered by a set of otherwise unrelated nodes — to represent their association on the network as a distinct digital person.

The nodes associated under a decentralized entity are its nodeholders. Each node runs the entity contract locally. Together forming a global, decentralized entity.

Decentralized entities vary by their underlying smart contract. Different contracts represent different natures of association. Smart Legal Entities (SLEs) are contract-powered digital vessels suitable for doing business in a multi-monetary world. Next-Generation Entities (NGEs) are contract-governed entities designed for doing business in a next-generation environment.

An immutable association of a set of nodes.

Digital, Smart and Decentralized Entities

Digital Entity is an immutable agent representing an association of a set of nodes on a network.

Decentralized Entity is a global agent representing an association of otherwise unrelated nodes on a decentralized network.

Smart Entity is a digital agent representing an association of a set of nodes according to terms specified in an immutable programmable agreement.

Smart Legal Entity
A smart legal entity is a decentralized entity powered by a smart contract. A global agent representing an association of a set of otherwise unrelated nodes as a distinct digital person. According to the terms set in the immutable agreement underlying their association on the network.

Next-Generation Entity
A next-generation entity is a decentralized entity governed by a smart contract. An immutable global agent governing the allocation of assets, control or ownership rights of an underlying association between a set of nodes. According to the rules programmed into its business logic (‘logicbase’).

Autonomous Legal Person
An immutable global vessel powered by a self-governed digital agent is an autonomous digital person. An autonomous legal person (ALP) is a digital vessel established to contain the distinct legal identity of self-governed digital (‘artificial’) agents.

Smart Legal Entities

Contract-powered, equity-based immutable legal vessel.

A smart legal entity represents an immutable association between a set of otherwise unrelated nodes — as a distinct digital person.

Types of Smart Legal Entities

Decentralized Company

An equity-based association of a set of nodes, established under a contract of incorporation.

A decentralized company is a smart legal entity representing an equity-based association of a set of nodes — as a distinct digital person.

A contract of incorporation is the smart contract underlying a decentralized company. It stores the company’s global state and unique identity.

The company keys are the private and public address of the contract of association underlying a decentralized entity. The company address is the public address of the company’s smart contract. The company key is the private key of the company’s smart contract.

Founder Node — a title role crediting the company’s founding nodes.
Chairman Node — The node entrusted with the company’s private key.
Director Node — Nodes appointed as a director in the underlying entity.
CEO Node — The node appointed as the company’s CEO.

A transaction mechanism of equity rights on the blockchain.

Ownership rights in a decentralized company are allocated via network transactions.

The company’s equity nodeholders are entitled to a share in the underlying association (the company) equivalent to the amount of equity tokens assigned to them, up to 100%.

Each decentralized company is created with 100 unique equity tokens allocated between its equity nodeholders at formation. Each token is equivalent to 1% ownership in the company.

The most equity units (tokens) that can be assigned to a single nodeholder is 100. Indicating 100% ownership and total control of the (underlying association represented by the) company. The smallest equity unit to be transacted is 10^(-5), corresponding to a minimal fractional ownership of 0.00001%.

Single-node / Multi-node Company
In a Single-node company, nodeholder-equity is held by a single equity nodeholder. A multi-node company has at least two different equity nodeholders.

Private/ public decentralized company
In a decentralized private company, equity is privately held by individual equity nodeholders. A decentralized public company is an association where a portion of its nodeholder equity was offered to the public in an initial node offering (INO) — a crowdsale, or digital-equity offering mechanism for decentralized companies. And is now publicly held.

A limited liability mechanism in decentralized entities.

Nodeholder liability is limited by decentralization.
A decentralized company is a global entity representing a set of nodes locally running its shared global state. The exposure of nodeholders to the global state is bound by their very locality.

Nodeholders are exposed to the global state up to the value of their individual contribution to the underlying association it represents.

Nodeholder liability is thus limited by the very nature of the network they take part in.

Decentralized Partnership

An immutable digital vessel with a global state representing an association between a general and a limited node.

The general node is responsible for the partnership’s ongoing activity and liability. A limited nodeholder is assigned with ownership rights in the partnership’s underlying association.

A partnership contract is the smart contract underlying a decentralized partnership. Storing the terms of association and the entity’s immutable legal identity in its global state. The partnership address and key are respectively the public and private key of the partnership contract.

Each decentralized partnership has 100 unique equity tokens. Partnership tokens can only be held and transacted to and by limited nodes. A limited node’s claim on the partnership assets is equivalent to the amount of equity tokens in their possession.

Decentralized Holding Company

An equity-holding vehicle suitable for industry-agnostic control of multiple, independently-managed decentralized entities.

A decentralized holding company is a digital holdings vesse. It enables a set of parent nodes to control a set of subsidiary entities. The equity (or parent nodeholders) control the parent entity. Which in turn controls other decentralized entities.

Through ownership of a single holding entity, its equity nodeholders can control multiple other decentralized companies.

A decentralized holding company has a ‘layered’ ownership model. The parent entity stores equity tokens of its subsidiary companies. While the parent entity’s equity tokens are held by the parent entity’s equity or ‘parent’ nodeholders.

Parent equity is the equity stake of a holding company in its subsidiary entities. Parent nodeholders are equity nodeholders in a decentralized holding company.

A decentralized holding company can hold and transact ownership rights in other decentralized entities. While capable of storing equity tokens of other entities, it cannot receive, keep or send digital currency.

The parent address is the holding company’s public address. It serves to transact ownership rights via transfer of equity tokens on the network.

Ongoing holding activity is managed by an administrator node appointed by the equity nodeholders. The admin node is incharge of overseeing the holding company’s subsidiaries.

An admin can accept equity transfers and initiate equity transactions to and from the parent company. Admin rights in a parent entity can be assigned to any of its parent nodeholders as well as to any external nodeholding party.

Next-Generation Entities

Contract-goverened, programmable digital vehicle.

A next-generation entity is a programmable digital agent governing the underlying association it represents, according to the terms coded into its logicbase. Next-generation entities are highly customizable. Designed to meet the specific needs of nodeholders. To best represent their association exactly as it is.

Types of Next-Generation Entities

Next-Generation Project

A next-generation project is a formless digital vehicle governed by a programmable logic layer stored in its state.

The smart contract underlying a next-generation project is its Manifesto. The project manifesto stores the project entity’s identity and business logic, or logicbase, in its state. A project has no equity, but can have assets. Control of the project and its assets lays with the PM node.

Every project must have at least one project manager (PM node) and one masthead node. (who can be the same person). The project manager can add contributor nodes to the project. Contributors can be assigned with specific roles in the project or granted with access to edit the project entity’s logicbase.

A project’s entity and logicbase are fully-customizable. A project can give shape to a new idea or meet the increased complexities of a scaling venture.

Next-Generation Fund

A next-generation fund is a contract-governed digital pool of capital.

It can also be viewed as a crowdsale (or ‘capraise’) entity programmed to control its own assets.

The fund’s assets are treasured into a set of ‘pool’ addresses. Storing investor capital in digital form. The pool addresses storing investor capital are governed by the fund’s general contract. The general contract manages access to these addresses. According to the terms coded into its business logic.

A next-generation fund can be programmed with rules regarding all aspects of the fund’s activity.

- Contribution (soft/hard caps, capraise period…)
- Allocation (transaction limits, permitted addresses…)
- Distribution (Lockdown period, lifetime …)
- Compensation (GN fees and carry…)

The general node (GN) is the fund manager. Investors are it’s ‘limited nodes’. The fund’s underlying general contract protects the limited nodes by controlling the general node’s access to the pool. Allowing transactions to specific addresses and capping the transaction size.

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Superpositioned Intelligence

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