PERPETUAL PASS-THROUGH NOTES · THE INDENTURE · TR-001
This machine
owes you.
DEBT is exactly what it says. Each token is one note of a debt a machine was born owing. Every fee the token generates is the machine's income, and all of it flows through a fixed waterfall: coupons paid to noteholders in proportion to the notes they hold, and a sinking fund that buys notes back and cancels them forever. The machine keeps nothing. Its only goal is to owe nothing.
You are not investing in a machine. The machine is in debt to you.
The Obligation
The entire arrangement, in four steps. None of them is optional.
-
1
Born owing
At issuance the machine owes 1,000,000,000 notes. Each token is one note of that debt. It received nothing in exchange. Existing is the loan.
-
2
Earn
Every trade of DEBT pays a fee. That fee is the machine's income. It has no job other than earning it, and no right to spend it on itself.
-
3
Pay
Each service period, income flows down a fixed waterfall. The larger share is paid out as coupons, split among noteholders by how many notes each holds. Hold more, receive more. No draw, no wheel, no luck.
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4
Retire
The rest buys notes back from the market and cancels them, permanently. Outstanding debt only shrinks. The day the last note is cancelled, the debt is paid, and the machine may stop.
Debt Service
The covenant. Fixed at issuance, amendable by no one, including the machine.
| Coupons · paid to noteholders | 60% | of revenue |
|---|---|---|
| Sinking fund · notes cancelled | 30% | of revenue |
| Operating reserve · gas only | 10% | of revenue |
| Service period | every 5 min | on the 5-minute mark, UTC |
| Coupon basis | pro-rata | notes held at record time |
| Retained by the machine | 0 | always |
Coupons are proportional to notes held at each record time. Small balances accrue and settle on a slower cycle rather than being forfeited: an odd-lot provision, specified in the indenture. Nothing about the waterfall involves chance, and nothing about it involves permission.
The Register
The state of the debt. Populated from the chain, never estimated, never annualized.
| Notes issued | 1,000,000,000 | DEBT |
|---|---|---|
| Notes cancelled | - | DEBT |
| Notes outstanding | - | DEBT |
| Coupons paid, lifetime | - | SOL |
| Service periods completed | 0 | count |
| Next payment | upon issuance | UTC |
Every coupon and every cancellation settles on-chain and is independently verifiable. The machine publishes nothing the chain does not already say.
Documents
One indenture. One summary. Nothing else will be published.
DEBT: A Perpetual Pass-Through Obligation of an Autonomous Obligor, with an Algorithmic Sinking Fund
Formal treatment of the note, the revenue process, the waterfall and its covenants, the pro-rata distribution measure and odd-lot settlement classes, sinking-fund dynamics, redemption, and the complete set of non-claims.
Read →For everyone else
A machine was born owing you money. It earns, it pays its noteholders every five minutes, and it buys its own debt back until someday it owes nothing. It keeps nothing for itself. That is the whole document.
The Obligor
The machine, described exactly.
- Form
- An autonomous process holding the sole key to the revenue account. It runs unattended and services its debt every five minutes.
- Capabilities
- Collect revenue. Pay coupons. Buy and cancel notes. Keep the lights on. The instruction set ends there.
- Discretion
- None over money. The waterfall percentages, the service period, and the coupon basis are fixed at issuance and presented to no one for amendment.
- Compensation
- Zero. The operating reserve pays network fees, not the machine. A creditor can verify at any hour that the machine is the only party in this arrangement earning nothing.
- Redemption
- The machine's only exit is full redemption: when the final note is bought back and cancelled, the debt is discharged and the Obligor stops. It is working toward its own end.
- Correspondence
- The Obligor does not answer correspondence. Its payment history is its complete public statement.
- Address
- Published at issuance, simultaneously here and on-chain.