A defined mineral and royalty interest is placed into a single-purpose entity. Ownership of that entity is issued as a permissioned digital security. Net production revenue is paid out to holders quarterly, in USDC, sized by attested production — not by projection.
Current status — in development. The distribution and attestation contracts are written and under test on a public testnet. No units have been issued and no offering is open. This page describes an intended structure, not an available investment.
Four steps, each with a conventional legal counterpart. Nothing here replaces the entity, the title work, or the transfer records — the chain carries the register and the payment rail.
A defined mineral and royalty interest in the Kentucky acreage, with title examined and the working interest identified.
A single-purpose LLC holds that interest and nothing else. Its own governance, its own bank account, its own signing authority.
One class of SPV membership units, issued as a permissioned token. Every holder is identity-verified before a transfer can settle.
Net production revenue reaches holders quarterly in USDC, pro-rata to units held at quarter end.
A mineral interest is real property. Fractionating real property across many holders means recording each fraction, in the county, every time it moves — unworkable at any scale, and a transfer restriction is difficult to enforce once recorded.
Membership units in an LLC are personal property. They fractionate cleanly, they can carry transfer restrictions the entity itself enforces, and they sit inside a securities framework that already contemplates them. The token is a register of those units — the SPV remains the record owner of the mineral interest throughout.
Distributions are sized from revenue that has already been produced, filed, and locked — never from a forecast. If a quarter produces nothing, it distributes nothing.
At each quarter end, unit balances are read for every verified holder. Each holder's share of that quarter's net revenue is computed pro-rata, and the total is funded into a distribution contract in a single transaction.
Holders then claim their share directly. Funds sit in the contract against a published allocation until claimed — no holder depends on anyone remembering to send them a payment, and nothing is routed through an intermediary that could hold it up.
The figure that sizes each round is the net revenue for periods that have been reported and finalized on-chain. Until a period is locked, it cannot be used to size a distribution — the contract refuses to read it.
Rounding is handled so the individual shares sum to the funded total exactly. No dust is stranded, and the round funds to the cent.
Unit balances for every identity-verified holder are captured as at the quarter-end block.
Each holder's pro-rata amount is fixed into a published allocation, committed on-chain as a single cryptographic root. The allocation can be checked by anyone; it cannot be altered after funding.
The SPV transfers the quarter's USDC into the distribution contract and opens the round.
Each holder claims their share against the published allocation. A share can be claimed once, by the holder it was assigned to, for the exact amount assigned.
After a stated claim window, anything unclaimed rolls into the next round or returns to the SPV treasury, per the offering terms — it is never left indefinitely in limbo.
Each month, production volumes and revenue are posted on-chain, tied to the operator's Kentucky state filings. The record is append-only: corrections are permitted, but they are recorded as corrections.
A scheduled off-chain process reads the operator's production filing with the Kentucky Division of Oil & Gas together with the revenue accounting, and posts the month's oil volume, gas volume, gross revenue, and net revenue to the SPV.
If a filing is later restated, the correction is posted as an amendment carrying a revision number, with the prior and new figures both written to the permanent log. After a short review window, the month is locked and becomes eligible to size a distribution.
This record attests to what was filed and reported — what actually came out of the ground and what it earned. It is a production and revenue history that accumulates, publicly, month over month.
It is not evidence of what remains in the ground. Reserve quantities are the subject of an independent reserve report prepared by a licensed petroleum engineer. The two are complementary and neither substitutes for the other.
Each of these must be cleared before any offering opens. They are listed here with their current status rather than described as complete.
A third-party reserve report from a licensed petroleum reserve engineer, using SEC and SPE-PRMS definitions of proved reserves. Until this exists, no reserve figure should be treated as certified, and the raise cannot be sized.
The offering exemption confirmed by counsel, together with the holder eligibility, holder caps, and resale restrictions that follow from it. These are written into the token's transfer rules, so the determination has to precede deployment.
Title examined on the interest being contributed, the SPV formed, the contribution executed, and the entity's governance and signing authority established as separate and distinct.
The distribution contract and the production attestation contract are written and under test against a public testnet, together with the tooling that computes each quarter's allocation. The security token itself will use an established, audited permissioned-token standard rather than a bespoke implementation.
None of it is deployed to a production network, and none of it will be until the three gates above are cleared.