Protocol
How verified art becomes working capital
Registration, coordination, data, governance and circulation — five layers, one auditable path from a physical work to a quoted claim.
TRI-DENT system stack
Eastance is the art-sector vertical of TRI-DENT, a general operating system for digitalising real-world assets. Five layers run in strict order: nothing is tokenised before it is registered, coordinated, valued, published and governed.
Compliance registration layer
Standard Asset Registration System
Title verification, notarised registration and a unique asset serial for every physical object entering the network.
Industry coordination layer
Industrial SaaS & statistics
SaaS workflow across appraisal, restoration, logistics, custody, exhibition and licensing nodes, with contribution accounting per node.
Revaluation layer
Revaluation & Asset Scoring System
Annual third-party re-appraisal, tiering, liquidity discounting and condition scoring feeding the effective valuation model.
Data hub layer
Decentralised asset & price interface
Publishes treasury fair value, circulating supply, per-token observation indicator, trade tape and value-chain indices.
Governance layer
TRI-BUTE · IN DAO WE TRUST
Warehousing approvals, dividend parameters, market-making policy and treasury actions decided by on-chain vote under LPF mandate.
EST-C sits above the stack as the circulation layer: it carries the coordinated, revalued, disclosed and governed cash-flow rights — never the physical object itself.
Investor eligibility
- Individuals
- Liquid assets ≥ HK$8,000,000
- Institutions
- Professional Investor status under Cap. 571 Sch. 1
- Minimum commitment
- HK$500,000
- Wallet requirement
- PI-verified, allow-listed address
- Excluded persons
- US persons and sanctioned jurisdictions
Core mathematical models
(1) Asset-backed minting equation
Tokens are minted only after physical artworks clear the four-fold review and are confirmed into custody. Phase 1: A_fair = ¥100B fair value, warehousing conversion coefficient ρ = 40%, P_target set dynamically → 64,520,000 EST-C.
- No assets, no minting
- No scale cap — ¥10B to trillions, one standard
- No credit expansion
- No dilution — 38% treasury permanently locked
(2) Per-token asset floor price
Phase 1: ¥100,000,000,000 ÷ 64,520,000 ≈ ¥155 ≈ HK$167 ≈ US$21.5 per token. Asset pool growth (+¥6–10B/yr) is modelled to outpace circulating supply growth, producing a natural deflationary lift in book value per token.
(3) Tiered effective valuation
Four liquidity tiers with discounts of 10/20/30/40% and weight caps of 30/25/25/20% — internal risk observation only. Appraisals vary with appraiser, market cycle and distribution channel, so every warehoused asset is re-appraised annually by an independent third party.
(4)(5) Multilateral substitution utility
Substitution utility and the composite index A_EST-C weigh safety, neutrality and return against switching cost, FX volatility and liquidity depth. Reference benchmarks: USDC/USDT (+10%, short-term feasible), AEDZ (+5%), JPY (+15%, long-term watch), PAXG (−5%, mid-term feasible). Academic modelling only.
(6) Exchange band constraint
A reference band is maintained against major fiat and stablecoins, with tolerance δ calibrated per counterpart liquidity depth (±3% to ±8%). Under normal conditions the model assumes US$10–50M daily turnover and deviation under ±2%, absorbed counter-cyclically by the 15% market-making fund.
Important: the per-token asset floor is an internal static observation indicator inside the Eastance dAPI system only. EST-C carries a claim on operating cash flow of the art industry chain — not physical title, not auction disposal rights, not any direct claim on collection appreciation. Third-party appraisal value ≠ realisable value, and a rise in book valuation does not necessarily increase cash flow. The indicator constitutes no secondary-market price support, no backstop and no return guarantee.
Three sources of return
What is acquired is a cash-flow income right backed by warehoused physical assets — entered at 30%–45% below the static book indicator. Each layer is a modelled expectation, not a promise: price convergence, dividend levels and pool expansion are all conditional on market and operating outcomes.
Layer 1 · Price gap return
Discounted private subscription against the static book indicator; convergence is an expectation, not a guarantee.
Layer 2 · Quarterly dividends
Operating cash flow of the art industry chain — custody, exhibition, licensing, appraisal and paid-in advisory fees.
Layer 3 · Value appreciation
Asset pool expansion lifts the observed asset value per token; holders have no direct claim on artwork appreciation.
Legal structure & capital flows
Property-law separation of ownership and revenue rights: artworks stay onshore, assignable operating cash-flow rights travel to the offshore issuer.
Onshore industry chain
Title verification, valuation, custody, exhibition, licensing and operating revenue generation.
Art capital contribution
Company Law Art. 49 non-monetary contribution channel serving the 2027 paid-in capital deadline.
HK SPV
Wholly owned subsidiary of the LPF; holds domestic revenue rights and acts as capital conduit.
Hong Kong LPF (Cap. 637)
Issuer of EST-C; mandated to sign multilateral swap, stablecoin and settlement agreements.
Token layer
EST-C on public blockchains and licensed VATPs, with dAPI value synchronization.
Outbound: asset & rights channel
Verified revenue rights are legally assigned to the HK SPV, mapped on-chain and represented by EST-C.
Inbound: revenue repatriation pipeline
Operating cash flow is remitted to the SPV, consolidated by the LPF and distributed to holders quarterly.
REGULATORY BASIS
- PBOC Yin Fa [2026] No. 42
- CSRC Announcement [2026] No. 1
- SFC HK Circular on Tokenized Products
- Company Law Arts. 48 & 49
- HK Limited Partnership Fund Ordinance (Cap. 637)
Art capital contribution & the 2027 deadline
The new PRC Company Law turns registered capital into a hard cash obligation. Art. 48 requires subscribed capital to be paid in within five years of incorporation, with 30 June 2027 the statutory adjustment cut-off for existing companies; Art. 49 expressly permits contribution in non-monetary property. Art-backed paid-in capital is Eastance's first-line, fee-generating business — not a theoretical construct.
Companies needing capital top-up
Statutory cut-off
Legal basis
Typical cash saving
Eligibility & appraisal
The artwork is screened for clear title, then appraised by an independent licensed valuer at fair value.
Notarisation & title transfer
Contribution agreement and transfer of title to the company are notarised, satisfying the non-monetary contribution requirement.
Registration & capital verification
Paid-in capital is registered with AMR; a capital verification report closes the Art. 48 obligation.
Custody & revenue rights
The artwork enters bonded custody in the Eastance network; operating revenue rights feed the LPF cash-flow pool.
Art-backed contribution requires clear title, an independent appraisal accepted by the registry, and full legal transfer to the company. Appraisal value is not realisable value, and acceptance is at the discretion of the competent authority. Eastance provides coordination and custody services, not legal or tax advice.
Roadmap & market onboarding
Phase 1 · Warehousing
¥100B of art assets confirmed through four-tier review; 64.52M EST-C minted.
Phase 2 · Private rounds
Strategic and standard private tiers at ¥85 and ¥109 per token.
Phase 3 · TGE & VATP listing
Listing on licensed virtual asset trading platforms, with market-making support.
Phase 4 · Multilateral network
LPF multilateral agreements: liquidity swaps, stablecoin exchange, cross-border settlement.
Phase 5 · Institutional recognition
Scaling the asset pool toward trillion-RMB targets and global RWA index inclusion.
Glossary
Terminology used throughout this site follows the July 2026 whitepaper edition.
The general operating system for digitalising real-world assets; Eastance is its art-sector vertical.
Standard Asset Registration System — the compliance registration layer assigning notarised asset serials.
Revaluation & Asset Scoring System — annual third-party re-appraisal, tiering and liquidity discounting.
The protocol data hub publishing treasury value, supply, observation indicators and value-chain indices.
The circulation token carrying offshore operating cash-flow income rights; no physical title attached.
Hong Kong Limited Partnership Fund (Cap. 637) — the issuer and cash-flow consolidation vehicle.
Warehousing conversion coefficient, 40% in Phase 1: the share of fair value convertible into minted tokens.
Professional Investor as defined by the Hong Kong SFO (Cap. 571, Sch. 1, Pt 1).