Certificates are yield-bearing ERC-1155 instruments that directly fund natural assets and stewardship. They represent specific ensurance—direct commitment to protection.
why
Some members want more than liquid exposure. They want:
- Direct connection to specific natural assets or agents
- Yield tied to ecosystem outcomes
- Verifiable claims on ecological data
- Permanent protection pathways
Certificates are the instruments for committed protection.
what
certificate characteristics
| Property | Description |
|---|---|
| Standard | ERC-1155 |
| Scope | Asset-specific (policies) or agent-specific (lines) |
| Funding model | Direct — purchase funds the certificate's agent account |
| Yield | Yield-bearing (distributions to members) |
| Verifiability | Data claims for policyholders |
policies vs lines
Certificates come in two forms:
| Type | Definition | Funding Model | What It Funds |
|---|---|---|---|
| Policies | Tied directly to a specific natural asset | Bundled — the whole ecosystem is the unit | The natural asset agent |
| Lines | Tied to agents representing groups, regions, or purposes | Stacked — direct funding to the agent account | The agent, which in turn funds other agents, lines, coins, and policies |
Policies bundle. A policy represents a whole natural asset and all its ecosystem services as one instrument. No internal fragmentation.
Lines stack. Lines directly fund the agent account the certificate represents. That agent may be steps removed from a policy, but the purchase itself is direct. Lines fund agents, other lines, coins, AND policies — they are the complementary layer.
Both policies and lines are direct funding. Coins are indirect (trading activity generates proceeds).
issued on VALUE, priced on COST
Certificates embody the core ensurance principle: instruments are issued based on ecosystem service value but priced based on real asset cost.
| Component | Basis | Description |
|---|---|---|
| Par value | Flows (VALUE) | Face value based on annual ecosystem service value |
| Purchase price | Stocks (COST) | Market price based on real asset acquisition cost |
| Spread | Natural cap rate | The gap between value and cost — embedded opportunity |
| Yield | Premium + distributions | Returns from the protocol |
The spread between par value and purchase price is the natural cap rate in action:
| Natural Asset | Purchase Price | Par Value | Spread | Natural Cap Rate |
|---|---|---|---|---|
| Beaver Riparian | $0.13 | $1.00 | 7.6× | 766% |
| Highland Forest | $0.35 | $1.00 | 2.8× | 281% |
| Forested Wetland | $0.21 | $1.00 | 4.8× | 493% |
| Coastal Estuary | $0.76 | $1.00 | 1.3× | 131% |
Stock investors enter at cost (purchase price). Their certificates face value (par). The premium stream from flow investors creates the financial yield.
policyholders vs certificate holders
Not all certificate holders are policyholders:
| Policyholder | Certificate Holder | |
|---|---|---|
| Holds | Policy certificates (natural asset-specific) | Any certificate (policy or line) |
| Data claims | Yes — ecological indicator data on specific natural asset | No (unless also holding policy certs) |
| Distributions | Yes (if member with connected agent) | Yes (if member with connected agent) |
| Relationship | Direct to specific natural asset | Direct to agent account |
If you want ecological data claims, invest in policies — the foundation, the source.
distribution eligibility
Only members (agent account holders) who hold certificates in wallets connected to their agent receive distributions. Participants who hold certificates via external clients (OpenSea, etc.) but lack an agent account do NOT receive distributions.
This is the incentive to become a protocol member.
how
policy lifecycle
Slip → Policy → ENTRUST
- Slip — Preliminary assessment of natural asset
- Policy — Active ensurance with premium payments and certificate sales
- ENTRUST — Permanent protection (IRR targets met, asset enters trust)
Certificate sales from flow investors fund the agent account for the asset. The protocol calculates IRR and distributes yield to stock investors. Once targets are met, the natural asset transitions to permanent protection.
purchasing certificates
Certificates can be:
- Purchased directly via the app
- Acquired on secondary marketplaces
- Minted by groups creating new lines
Purchase flow:
GET /api/specific/tokens # Browse available certificates
POST /api/specific/purchase # Purchase certificates
holding certificates
Certificates can be held in:
- Owner account (🟢)
- Operator account (🔵)
- Agent TBA
Policy certificates can only be in one wallet at a time. Line certificates can be held by multiple parties (ERC-1155 allows quantity > 1).
certificate yields
Members holding certificates receive:
| Source | Description |
|---|---|
| Financial yield | Returns from premiums and protocol activity |
| Protocol distributions | Distributed to all certificate-holding members |
| Asset proceeds | Returns from specific natural asset activity |
| Data claims | Policyholders only — ecological data from their asset |
technical implementation
Contract standard: ERC-1155 (multi-token standard)
Key features:
- Multiple certificate types in one contract
- Batch transfers for efficiency
- Metadata including natural asset reference
- Proceeds integration via splits
Query certificate data:
GET /api/specific/tokens
GET /api/specific/tokens/{id}
protocol roles in certificates
| Role | Description |
|---|---|
| Ensured | Nature itself (and society) — what certificates protect |
| Ensurer | The protocol (ENSURANCE DUNA) — issues certificates |
| Policyholder | Member holding policy certs — gets data claims |
| Certificate holder | Member or participant holding any cert |
| Agent | Member coordinating ensurance activity |
related
- coins — General ensurance instruments (indirect funding)
- ensurance — The two-sided capital structure and distribution rules
- proceeds — How yields flow to certificate holders
- natural-capital — What certificates protect and the natural cap rate
- natural-assets — The foundation certificates are tied to
- groups — Who creates certificate lines