Tokenization Process

Principle: no evidence, no settlement. Data is signed at the source, verified by the protocol, minted into a proof token, then converted (when needed) into a market/ compliance asset.

Chain: EDMA L2 handles execution and settlement; Ethereum (L1) anchors security and permanence.

Fees: all minting/conversions/transactions require $EDM.

• Energy & Carbon: 2% buyer + 2% seller for settlement transactions.

• Commodity milestones: 0.5% per tranche (with enterprise caps).

• In all cases, 50% of fees burn (no EDM, no action).

A) Energy flow — ETT → CLE / RECs

1

Capture & sign

Smart meters/IoT record generation (kWh), location, timestamp, source; data is cryptographically signed and sent to Edma.

2

Verify

Oracles+AI validate readings, de-dup, and cross-check where applicable (e.g., grid/operator feeds). Only valid data proceeds.

3

Mint proof (Edma L2)

Protocol mints ETT (non-transferable): 1 ETT = 10 kWh. The proof is anchored back to Ethereum for auditability.

4

Consolidate to market units

When the account reaches 100 ETT, the producer receive an additional 0.7 CLE = 0.7 MWh (tradable). ETTs are consumed/linked to prevent double counting.

5

Optionally certify

From ETT evidence, the producer may create RECs / Certificates of Origin as needed for compliance programs.

6

List & Settle

CLE/RECs are listed on the Edma marketplace (on Base). Buyer pays; settlement uses $EDM. Fees: 2% buyer + 2% seller; 50% burn.

7

Finality & record

If used for compliance, instruments are retired on-chain; all lineage (ETT → CLE/REC → buyer) is immutable and audit-ready.

B) Carbon flow — direct Carbon Credit NFTs

1

Capture & Sign

Project MRV feeds (IoT/satellite/field audits) submit signed evidence with project, methodology, baseline, and vintage.

2

Verify

Edma checks methodology consistency, baselines/leakage, and cross-registry duplication risks. Only verified reductions proceed.

3

Mint Proof (Edma L2)

Edma mints a Carbon Credit NFT per verified ton (unique serial + full metadata). The NFT is anchored to Ethereum for permanence.

4

List & settle

NFTs trade on the marketplace; settlement in $EDM with the same fee/burn rules. Buyers can retire NFTs on-chain to claim reductions.

5

Finality & Audit

Retirement creates a public, immutable trail from evidence to claim, suitable for auditors and stakeholders.

C) Commodity trading rail — EMT & milestone settlement

1

Contract on-chain

Buyer and supplier e-sign a smart contract (specs, Incoterms, milestones, dispute rules). Funds are committed per the deal structure; $EDM covers protocol fees.

2

Capture milestone evidence

Port authority logs “on board,” customs/warehouse confirms “cleared/received,” lab issues assay/CIQ. Each event is signed at the source.

3

Verify & mint (Edma L2)

For each verified event, the protocol mints an EMT (Event/Milestone Token, non-transferable) tied to that shipment and contract.

4

Release by proof

Upon EMT issuance, the smart contract releases the corresponding payment tranche automatically. No EMT, no release.

5

Completion & record

Final delivery EMT closes the contract; settlement history, proofs, and disbursements are anchored to Ethereum for audit and finance

Why this works

• Evidence-first: ETT (energy) and EMT (trade) are proof-only; they don’t move, so they can’t be double-sold.

• Market-ready: Value flows through CLE, RECs, Carbon Credit NFTs—the tradable layer—with $EDM as the settlement currency.

• Scalable & credible: Transactions run on EDMA L2 for speed/cost; proofs and final states are anchored on Ethereum for security.

• Deflationary by design: Every conversion and trade consumes $EDM; half of fees burn, tying network growth to token scarcity.

Edma’s tokenization process bridges the gap between energy, manufacturers, buyers, financial markets, and ESG compliance, creating a more accessible, efficient, and scalable real-world asset ecosystem.