Trade Flow

A metals buyer agrees a $5,000,000 shipment with a supplier. Under legacy rails the contract lives in PDFs, funds sit in a letter of credit, and everyone waits on emails to confirm “on board” and “delivered.” Working capital is locked; disputes hinge on paperwork.

In EDMA, the contract is codified once, then cash moves on verified milestones. Port systems, warehouses, carriers, and labs sign their events at the source. When a milestone is verified, the protocol mints a non-transferable Event/Milestone Token (EMT) tied to that shipment and contract. No EMT, no funds. Duplicate or out-of-sequence claims fail against One-Claim and the contract state.

A typical flow looks like this:

• Loading at port → “On board” EMT. The contract releases Tranche 1 automatically.

• Customs cleared / warehouse receipt → EMT. Tranche 2 releases.

• Lab assay (grade/quantity) → EMT. Any quality/price adjustment executes.

• Final delivery → EMT. Tranche 3 settles; the deal closes.

Settlement is in $EDM. Proof mints (the EMTs) are gas-minimal; fees apply only on settlement, not on proof creation. For trade, the policy is 0.5% per milestone, capped at $5k for tranches ≤ $1M, $12.5k for $1–5M, and $25k for > $5M. Every collected fee is split 50% burn / 50% treasury on-chain.

Concrete example. The $5M contract settles across three tranches: 30% on board, 40% cleared, 30% delivered.

• Tranche 1 ($1.5M): fee 0.5% = $7,500 → capped at $12,500; $6,250 burned, $6,250 to treasury.

• Tranche 2 ($2.0M): fee 0.5% = $10,000 (under cap); $5,000 burned, $5,000 to treasury.

• Tranche 3 ($1.5M): fee 0.5% = $7,500 → capped at $12,500; $6,250 burned, $6,250 to treasury.

Because each EMT is bound to signed evidence (port load list, customs entry, warehouse receipt, lab report), the lineage is automatic: evidence → EMT → payout. If a verifier later revokes an attestation, dependent assets are flagged and funds stop until rectified—fail-safe by default.

Outcome: suppliers get faster, event-driven liquidity, buyers pay exactly when proof lands, banks and brokers are reduced to their highest-value roles, and settlement becomes predictable, auditable, and less risky—with every use reinforcing the EDM economy through on-chain burn.