Open Asset Protocol

[hack1t]

Simple Summary

This Asset Token Standard defines a smart contract legally representing the ownership and corresponding privileges of a real-world asset.
The Asset token corresponding to the ownership of real-world asset can be issued into Asset keys representing shares of the asset privileges. Any holders of Asset keys can collect dividends, earn income, and receive consumer services according to their shares. Asset keys can be regarded as the standard eosio.tokens, which exist only after an Asset token is issued into keys.

This standard keeps backward compatibility with [eosio.token].

Abstract

This standard defines the ownership of a real-world asset as an Asset token according to the unique verifiable identification and corresponding rights agreement. The Asset token is a unique digital legal certificate for non-specific transfer objects, which could transfer on Ethereum freely. The transfer of Asset Token represents the transfer of ownership of assets in the real world. The whole process greatly reduces transaction costs, improves efficiency and realizes disintermediation.
In accordance with the general Token-based mandatory delivery (TBD) agreement, any holder with this Asset token can forcibly claim for the real-world asset from the asset keeper (assigned when the Asset token is created). The Asset token will be destructed after the real-world asset has been claimed. In addition, the Asset token can be issued into a designated number of Asset keys. After key issuance, the Asset token will be in 'locked' status, under which any operations on Asset token are not permitted. Holders of Asset keys can collect dividends, earn income, and receive consumer services of the corresponding real-world asset according to their shares.

Motivation

This standard realizes the tokenization for real-world assets. In compliance with national laws and regulations, the mapping of the on-chain assets and off-chain assets is confirmed by the untampered programmable asset token generated on blockchain, which combines the unique verifiable identification and corresponding rights agreement of a real-world asset. The standard realizes the decentralized property verification for more real-world assets. This standard will endow Ethereum with greater value for the real world.
This standard promotes the conversion of primary and secondary real-world assets. The Asset token represents a kind of holistic property, any holder of the Asset token can lock the token and issue the designated number of Asset keys. The profit from the real-world asset appreciation will be distributed to the holders of Asset keys. Meanwhile, any holder of all the Asset keys can convert into the Asset token to claim for the real-world asset. Through this process, we can achieve the free conversion of primary assets and secondary assets, greatly reducing transaction costs and promoting the efficient of assets circulation.
This standard achieves intelligent management of programmable assets. This standard designs the function of Key issuance and Buyback price, applying smart contracts instead of corporate governance, shareholder vote, merger, acquisition, etc. Firstly, this standard can avoid big shareholders from doing evil. In reality, the major shareholders may encroach on the dividend income of the minority shareholders through the majority rule. On the other hand, it can also prevent small shareholders from extorting the holder who wants to collect all the keys to claim for the real asset, credit to the ‘collectAllForce’ function. In this way, the Situation described in “property is only another name for monopoly” will be refrained.
(property is only another name for monopoly, add link: https://chicagounbound.uchicago.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=12668&context=journal_articles)

Specification

Asset Status Brief

There are two metrics describing the status of the Asset token.
The first one is 'valid'. The Asset token is in 'valid' status by default and will be 'invalid' once the owner explicitly executes the 'cancelContract' function, which is not reversible.

The second one is 'issued'. The Asset token is 'unissued' by default, and will be 'issued' after the owner locks the Asset token and issues the Asset keys. This status is reversible. A holder with all Asset keys can convert them into the original Asset token.

Preferred Stable Token

The contract specifies a stable token at the initialization phase by assigning the address of a preferred stable token. Currently in our beta contract in EOS, we chose EOS as the stable token.

The stable token will be used to distribute dividends to the Asset keys holders or to collect Asset keys forcibly at the price the owner designated at when issuing the Asset keys.

Asset File Management

AssetFile includes two parts, one file describing features of the real-world asset and the other containing legal documents. These two files are open to the public and can be set at the constructing phase of the smart contract.

AssetFile: indicates the unique verifiable identification of real-world assets. Generally, AssetFile includes assets’ detailed description, photos of full angle, certification authority of value, quality, availability, etc. Different types of assets have different asset templates. Case Link
https://oss.hashfuture.top/DIGITAL_FINGERPRINT.pdf

assetFileHashValue: indicates the digital fingerprint of the asset. According to the binary data of ‘AssetFile’, applying the ‘assetFileHashType’, generate the unique and untampered ‘assetFileHashValue’, thus realizing effective registration of Asset information consistency.

LegalFile: indicates the Token-based mandatory delivery (TBD) agreement of real-world assets. This agreement publicly declares that any holder of the Asset token, that is, the owner of the real-world assets off-chain, can at any time enforce the settlement of the real-world assets described in the document ‘AssetFile’. Case Link
https://oss.hashfuture.top/USER_AGREEMENT.pdf

LegalFileHashValue: indicates the effective registration of the Token-based mandatory delivery (TBD) agreement. According to the binary data of ‘LegalFile’, applying the ‘legalFileHashType’, generate the untampered ‘legalFileHashValue’.

Key Issuance Management

The holder of an Asset token can issue a fixed number of Asset keys, specifying a total supply.

function split (asset supply);

This operation requires 'valid' and 'unissued' status and can only be executed by the owner.
After issuing, Asset keys appear and are compatible with standard tokens on EOS blockchain:

/**
 * Standard token interface.
 */
class TOKENInterface {
    void create(account_name issuer, asset maximum_supply);
    void issue(account_name to, asset quantity, string memo);
    void transfer( account_name from, account_name to, asset quantity, string memo);
    inline asset get_supply( symbol_name sym )const;
    inline asset get_balance( account_name owner, symbol_name sym )const;
}

If a holder collects all Asset keys, he/she can merge them into the original Asset token by executing the 'merge' function:

function merge(name issuer, symbol_code sym);

This function requires that the Asset token is 'issued' and the executor (i.e, msg.sender) has all the Asset keys.

Asset Dividends Management

If the real-world asset gains income and the corresponding Asset token has been issued, then the dividends will be distributed to holders of Asset keys according to their shares.
The dividend is denominated by the designated stable token.
To distribute dividends, one can call send stable token to the contract and let the contract holder to execute the 'divident' function, guaranteed that the contract has enough stable token.

function divident(symbol_code sym, asset amount) public;

Rationale

The Asset token standard expresses the uniqueness of assets, similar to the exclusive characteristics of non-fungible tokens, and promotes the mutual conversion between Asset token and Asset keys. Asset keys keep backward compatibility with fungible tokens.

Based on the asset information documents and legal agreements, a bridge linking the real asset in the physical world and tokens in the blockchain world will be established. Compliance with the legal agreements under the laws and regulations of various countries will help holders of Asset token or keys to obtain the rights and interests of real assets appreciation and dividends in a legal and compliant manner. At the same time, Asset keys will be given the voucher of asset consumption and VIP services, which will facilitate their circulation in the real world.

Backwards Compatibility

Asset keys can be regarded as standard eosio.token, which can only exist after the Asset token is issued.

Test Cases

Please check the link repository for the Process of Asset Tokenization test suite
Link: https://eospark.com/contract/reibexmaster?tab=use

Implementation

The implementation is available in the repo: link.
Link: https://eospark.com/contract/reibexmaster?tab=use

Copyright

Copyright and related rights waived via CC0.

[jgiszczak]

This seems to be a direct duplicate of a matching proposal by the same author to Ethereum, found at ethereum/EIPs#1540. It should be filed against eosio.contracts for consideration.