Work Package #6

Name

WP6 — Certificate Redemption

High-Level Description

This work package implements the RCP redemption mechanism — the process by which RCP holders receive their revenue participation payouts from the LP surplus pool. Redemption is contingent and asynchronous: it is triggered by real revenue accumulation, not a fixed schedule, and terminates when the return cap is reached (the contract’s defined end state). This work package covers the on-chain redemption validator, the off-chain redemption coordination service, and the certificate holder interface. It also implements the secondary liquidity pathway — the ability for RCP holders to transfer or trade their certificates before the cap is reached — enabling early exit without forcing redemption from ventures.

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Core Objectives

• Implement the on-chain RCP redemption validator on Cardano, enforcing the return cap and distributing payouts from the LP surplus pool (WP5).
• Build the off-chain redemption coordination service that monitors surplus pool states and triggers redemption transactions when thresholds are met.
• Implement secondary transferability of RCPs, enabling certificate holders to transfer or trade positions before redemption.
• Deliver a certificate holder interface showing current RCP balances, accrued payouts, remaining cap headroom, and redemption history.
• Ensure all redemption events are auditable and traceable to specific surplus pool states and demand signal histories.
• Implement the contract closure mechanism: when the return cap is reached, the certificate is marked as fully redeemed and closed.

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Expected Value — Why does this matter to Cardano?

Redemption is the moment the protocol completes its liquidity cycle: capital entered at the gateway, participated in real economic activity, and is returned with its agreed share of surplus. A correctly implemented, auditable redemption mechanism is what transforms RCPs from a novel instrument into a credible, repeatable one. Secondary transferability adds a liquidity dimension that makes RCPs practical for a wider range of capital partners, particularly those who cannot commit to indefinite hold periods.

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Success Metrics

• Redemption validator correctly enforces return cap: no payouts exceed defined cap per certificate.
• At least one end-to-end redemption flow completed on testnet, from surplus accumulation through to certificate holder payout.
• Secondary transfer of an RCP completed on testnet and reflected correctly in redemption entitlements.
• Contract closure mechanism triggered correctly when return cap reached: certificate marked closed, no further payouts possible.
• Certificate holder interface displays accurate payout history, remaining cap, and redemption status.

(max 4,000 characters)

Initiative Type

[x] New initiative

Primary Nature of Work

[x] Technical

Milestones

Milestone #1

Milestone #2

Milestone #3

Budget Breakdown — Work Package #6

Supporting Materials

[To be added]