📈Machine Tokenization
Streamlined Process for Tokenizing Revenue-Generating Machines.
From a high-level standpoint, the tokenization process involves issuing digital tokens that represent future earnings from a machine or fleet of machines. These tokens are privately listed on the XMAQUINA platform, allowing vetted investors to acquire them. The use of smart contracts automates revenue distribution, ensuring a secure and transparent process for all parties involved.
In practice, the tokenization process is more complex and can be broken down into the following steps:
Machine Operator Onboarding:
Assessment: The first step is to assess the businesses and their machines to evaluate their potential revenue generation. This involves analyzing operational metrics, market demand, and other financial indicators to determine expected revenue.
Verification: Conducted by the XM Robotics team, this phase includes a KYB process and a business audit.
Contracting: Ends with the signature of a contract stipulating responsibilities and ways of engagement. Once a business is onboarded and the project is accepted, they can list their project on the platform. Notably, a single business can list multiple projects, each with its own machine token.
Machine Token Issuance:
Creation: Following the assessment, digital tokens are issued by the machine operator to represent a proportional share of future revenue. Each token corresponds to a fraction of the total revenue pool from the fleet of machines.
Utility: Each business will have its own unique machine tokens. The primary utility of these tokens is to represent a revenue share from the machines.
Project Listing on the platform: The project and its machine tokens can be listed on the XMAQUINA protocol, along with detailed information about the machines, their operational performance, and the associated risks. This transparency helps provide investors with a clear understanding of the investment opportunity. The listing includes (1) a soft cap that needs to be crossed for the project to be activated and (2) a deadline.
Investor Participation: Investors purchase an "option to the token" through the platform. The purchase process is facilitated by blockchain technology, ensuring secure and transparent transactions. Technically, users transfer a stable coin such as USDC to the machine token contract, and the funds are locked until an unlocking event is reached.
Token Unlocking: The tokens are unlocked if one of these conditions is met: either the max cap is reached, or the amount of funding is above the soft cap, and the deadline is reached. If there is not enough funding for the project by the end of the deadline, the tokens are not released, and the funds are returned to the investors.
Token Pooled in Revenue Share Smart Contract: When the tokens are unlocked from the investment contract, they are transferred to the revenue share smart contract, which is responsible for the revenue distribution.
Revenue Collection: The revenue generated by the machines is collected and pooled by the machine operator. This revenue pool forms the basis for the returns to be distributed to the token holders. Every month, the revenue is transferred to a standard bank account managed by bridge.xyz
Fiat to Crypto Bridge: The bridge automatically swaps the fiat currency to the cryptocurrency agreed upon in the investment contract between the machine investor and the machine operator. The cryptocurrency is then automatically sent to the revenue share smart contract address.
Revenue Distribution: The revenue share smart contract automatically calculates the earnings for each token holder based on their share of the total tokens inside the pool. The revenue is then distributed to the token holders' wallets instantaneously. There is no time during which tokens remain in the contract.
Continuous Monitoring: The performance of the machines and the revenue generation is continuously monitored. This data is used to ensure that the operations are running smoothly and to make any necessary adjustments to optimize performance and returns.
These clear and detailed steps ensure that the protocol provides a secure, transparent, and efficient way to tokenize future machine revenue, offering significant benefits for both operators and investors.
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