Overview
An on-chain structure that lets capital hold human capital as an asset class, settled from off-chain production revenue, proven on-chain.
The ledger is the source of truth; the chain is the proof.
Abstract
Human capital is a vast asset class with no standardized market. Its revenue is heavy-tailed: a minority of names produces the surplus that carries the rest.
Held one name at a time, that distribution is a gamble.
Held as structure, it becomes an asset: capital holds the entire curve and captures the surplus the curve produces, with each name's downside isolated, so no single name can break the whole.
Returns come from the curve, not the bet.
What this document is
A description of the structure: the asset and the shape that makes it one, the architecture that custodies it, the participants that hold it under bounded powers, the two pools that hold the whole book, how loss is borne and what protects the Stable baseline, and the on-chain proof that the ledger is the truth. The chapters that follow set out each part in full; this section only names them, and the chapters govern where the two differ.
The structure in one paragraph
The Vault routes capital into one of two pools. The junior tier takes one name directly, and nothing absorbs loss ahead of it: it bears that name's outcome in full. The senior tier holds the whole book to a modeled per-pool baseline, protected first by the book's own diversification, then by a finite support sequence behind the baseline: realized revenue, then the monetization partner's support, then the Protocol Reserve. The Reserve is the last tier of that sequence, finite, and it supports the Stable baseline alone; it stands ahead of no pool. Once the sequence is exhausted, the baseline can be missed, and capital in any tier can be lost in part or in full.
The capital funds the production each pool is exposed to. The production earns its revenue off-chain, and that revenue returns to the pools as the source of every return, net of the cost of operating the book, settled in fiat, recorded in a double-entry, append-only ledger that holds every position, with a periodic root of that ledger anchored on-chain as proof: the book is provable end to end, not asserted. The revenue is contingent and may fall short.
How to read it
The document is one authoritative reading, in order.
It begins with the value: why the shape of the curve is the asset, what the structure monetizes, and that the same structure is general to a class of human-capital assets.
It then sets out the investment structure: the two pools and the Reserve, how each position is priced, how each pool meets loss and what protects the Stable baseline, and when capital enters and exits.
It then shows how the asset is held and proven: the ledger holds the truth, the identified participants hold it under bounded powers, the whole flow operates end to end, the chain proves it, and governance itself is bounded.
It ends with the limits the structure operates within, set out in full, in order of weight.
The Glossary defines every term used along the way.