certificates

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

policies and lines

Certificates come in two forms. The distinction mirrors the foundation layer.

Natural capital is in, under, on, and flows across natural assets. Lines fund the natural capital that flows across and between the natural assets that policies fund.

Both are certificates of ensurance. Both are ERC-1155 token IDs on one contract. The distinction is the legal relationship to the underlying.

the triad connection

The policy/line distinction maps to the PPP triad (place, people, purpose):

Lines = the full PPP space. Any agent — place, people, or purpose — can have a line. Policies = a subset of place. Only when place resolves to a legally defined natural asset with a cooperating titleholder.

policies

• Requires a cooperating legal titleholder (landowner, land trust, conservation entity, or the protocol itself as owner)
• The natural asset is a legally defined real asset — specific parcel, conservation easement, or ecological polygon
• Policies are written with the owner, not about them
• Bundling — one payment supports the entire ecosystem and all its services as one instrument
• Limited edition / fixed supply — derived from ecosystem service valuation
• Price set on cost basis (real asset acquisition cost)
• Carries MRV ecological claims — verifiable ecological data tied to the specific parcel
• Designed for the entrust pathway — premium protects from day one, end of policy is permanent conservation

lines

• No legal titleholder required
• Funds the purpose of protecting a place, supports the people doing the work, directs capital toward outcomes — without claiming to represent a specific asset
• For multi-jurisdictional places (watersheds, national forests, government reserves), lines are the right instrument
• Layering — complementary funding toward the natural assets that policies cover
• Open edition / uncapped supply
• Price set on context basis (geography, purpose, accessibility)
• Has MRV but no ecological claims on a specific asset — claims and evidence from the agent only
• Most lines will never reach entrust but can be ensured to varying degrees

Lines are not stepping stones to policies. For many places — especially large, complex, multi-stakeholder ecosystems — the line IS the appropriate instrument. Lines invest in policies within their mandate. This is how capital flows from lines (accessible, plural) toward policies (specific, titled).

the 1:1 rule

Every certificate maps 1:1 to an agent. One agent, one certificate.

• The agent is what gives a line its frame — just like the natural asset gives natural capital its frame
• If you can't name the agent, you can't mint the certificate
• If the concept is too abstract or diffuse to be an agent, make it a coin
• Sub-outcomes within an agent's mandate are proceeds routing, not separate certificates

Certificates carry real obligations — yield, proceeds routing, stewardship accountability. The 1:1 rule ensures every certificate has an agent on the other end receiving proceeds and being responsible for outcomes.

MRV and ecological claims

If you want true ecological data claims, invest in a policy — the foundation, the source.

when to use which

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.

The spread between par value and purchase price is the natural cap rate in action:

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:

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.

ensured states

Lines can be ensured to varying degrees. Policies carry the entrust commitment. Only policies reach entrust.

line-to-policy graduation

Not all real assets start as policies. A landowner may want stewardship revenue without committing to permanent conservation.

When the owner commits to the entrust pathway:

1. New policy certificate minted — limited edition, ESV-derived supply, cost basis pricing
2. Agent updates its certificate reference — provenance chain preserved
3. Old line certificate becomes legacy — no new minting, still valid onchain, still tradeable

Legacy certificate holders can hold, exchange for the policy certificate (paying the permanence premium differential), or sell. Early supporters get a discounted path to the permanence instrument.

Graduation is not guaranteed. This is why starting as a line is the honest instrument for uncertain commitments.

how

policy lifecycle

Slip → Policy → ENTRUST

1. Slip — Preliminary assessment of natural asset
2. Policy — Active ensurance with premium payments and certificate sales
3. 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:

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

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
• agents — The 1:1 counterpart to every certificate