Equity

Designing Simulation-Driven, Clause-Certified Ownership, Revenue, and Capital Participation Models within the Nexus Ecosystem

6.1 Dynamic Equity Allocation Protocol (DEAP)

6.1.1 The Dynamic Equity Allocation Protocol (DEAP) governs all equity, royalty, and attribution-linked rewards across the Nexus Ecosystem.

6.1.2 DEAP is simulation-certified—meaning equity rights are granted based on validated clause performance, contribution tiers, and reproducibility thresholds.

6.1.3 Equity may take the form of:

• Equity units in NE Labs ventures

• Simulation royalties (clause-based)

• Attribution-linked reputation credits

• Convertible SAFE-to-clause hybrid instruments

6.1.4 DEAP operates under NSF legal enforcement, ClauseCommons metadata, and NEChain audit tracking, ensuring transparency, reproducibility, and governance compliance.

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6.2 GCRI Founder Share and Clause Stewardship Rights

6.2.1 The Global Centre for Risk and Innovation (GCRI) retains a perpetual, non-dilutable founder equity share across all clause-based spinouts, simulations, and derivative projects initiated under NE infrastructure.

6.2.2 GCRI's founder equity:

• Protects Commons IP stewardship

• Ensures legal neutrality in commercialization

• Enables reinvestment into clause infrastructure and public interest R&D

6.2.3 GCRI also holds Clause Stewardship Rights, including:

• Veto authority over anti-commons behavior

• Oversight of attribution and licensing violations

• Arbitration initiation in cases of clause misapplication or misuse

6.2.4 This equity is non-transferable and subject to fiduciary obligations encoded within the NSF trust structure.

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6.3 Clause-Based Equity for MVP Builders and Contributors

6.3.1 Contributors to clause-based MVPs—developers, researchers, simulators, and testers—are entitled to equity via DEAP, indexed to:

• Contribution tier

• Simulation verification score

• Attribution status

6.3.2 Each clause earns a Clause Equity Score (CES), calculated from:

• Impact-weighted simulation metrics

• Deployment success

• Clause reuse frequency

• Foresight alignment ratings (GRA/GRF review)

6.3.3 Equity distributions occur through:

• Commons equity pools

• NE Labs venture equity tranches

• Simulation royalty multipliers

6.3.4 Contributor equity is vested via programmable smart contracts and disbursed upon achieving simulation-certified milestones.

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6.4 Simulation Royalties and Clause Usage Derivatives (CUDs)

6.4.1 Simulation-certified clauses generate ongoing royalties whenever reused, licensed, or embedded in sovereign, institutional, or commercial deployments.

6.4.2 Royalties are distributed via:

• Clause Usage Derivatives (CUDs)

• Clause-Linked Smart Contracts (CLSCs)

• Sovereign clause licensing revenue

6.4.3 CUDs are tokenized instruments that reflect future cash flows or usage-based returns linked to clause market activity.

6.4.4 CUD holders must pass NSF identity verification and simulation validation to claim or trade these rights.

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6.5 Sovereign Participation Units (SPUs) and Vesting Logic

6.5.1 Sovereigns engaging with Nexus Ecosystem are issued Sovereign Participation Units (SPUs)—non-dilutable, non-transferable units reflecting public infrastructure contribution and policy-linked deployment.

6.5.2 SPUs grant:

• Licensing credits for national clause use

• Attribution weight in clause voting

• Clause-specific revenue shares for verified public-good deployments

6.5.3 SPUs vest upon:

• Submission of simulation-aligned policy clauses

• Adoption of early warning, DSS, or anticipatory finance modules

• Deployment of sovereign clause registries under NSF compliance

6.5.4 SPUs do not constitute equity in NE Labs or commercial entities, but ensure sovereign benefit participation across all clause markets.

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6.6 Venture Equity for NE Labs Spinouts and SAFE Participants

6.6.1 NE Labs, as the commercialization arm of Nexus Ecosystem, may create spinouts, platforms, and licensed ventures using clause-certified infrastructure.

6.6.2 Participants in NE Labs venture tracks are eligible for equity through:

• Clause-linked SAFEs

• DEAP-based equity pools

• Convertible simulation royalties

6.6.3 Venture equity must meet:

• Minimum clause certification score

• Attribution integrity compliance

• Foundational Commons IP acknowledgment

6.6.4 NE Labs equity tranches are subject to quarterly review and governance alignment via the GRA Clause Governance Council and NSF arbitration clauses.

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6.7 Impact-Based Vesting Conditions and Rollover Mechanisms

6.7.1 All equity and royalty instruments within NE are subject to impact-based vesting, meaning contributors and institutional actors unlock rights only after verified simulation milestones.

6.7.2 Vesting triggers include:

• Forecast accuracy

• Clause performance in deployment environments

• Regulatory validation or public-good uptake

• Contribution to Pact-aligned simulation dashboards or policy labs

6.7.3 Unclaimed equity may be rolled into:

• Commons Equity Pools

• Impact Credit Reserves

• Clause Rotation Funds for underrepresented contributors

6.7.4 Rollover mechanisms are reviewed by GRA legal finance auditors and published in public vesting transparency dashboards.

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6.8 Equity Revocation for Inactivity or Misuse

6.8.1 DEAP includes revocation protocols for contributors or entities who:

• Abandon clause responsibilities

• Engage in misattribution or simulation fraud

• Breach licensing conditions

• Fail to maintain clause integrity under evolving governance rules

6.8.2 Revocation occurs through:

• NSF Arbitration Panel ruling

• ClauseCommons peer challenge

• NEChain verification logs

6.8.3 Revoked equity is either:

• Redistributed to active contributors

• Returned to the Nexus Commons Reserve

• Assigned to a dispute escrow until legal resolution

6.8.4 All revocations are documented, timestamped, and available via public dashboards to ensure procedural transparency.

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6.9 Capital Stack Integrity and Dilution Safeguards

6.9.1 NE maintains a multi-tier capital stack including:

• GCRI founder equity

• Contributor equity pools

• NE Labs venture equity

• Sovereign SPUs

• Simulation-linked token derivatives

6.9.2 Dilution safeguards include:

• Equity reserve ceilings

• Minimum Commons IP allocation thresholds

• Sovereign equity ringfencing

• Attribution-weighted dilution offsets

6.9.3 Capital stack allocations are managed via NSF’s Clause Market Governance Model (CMGM) and reported quarterly via GRF public briefings.

6.9.4 No venture, institution, or government may exceed its equity class without simulation-certified justification and GRA equity council approval.

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6.10 Simulation-Tiered Allocation for Multistakeholder Credit Pools

6.10.1 NAF supports the creation of simulation-tiered credit pools, where clause deployment performance governs participation in:

• Policy impact funds

• Resilience infrastructure grants

• Sovereign clause licensing incentives

• Investment-grade foresight marketplaces

6.10.2 These pools are accessible by:

• Civic groups via Commons tiers

• Startups via clause-based accelerators

• Governments via Sovereign Clause Sandboxes

• Multilaterals via Pact policy alignment indices

6.10.3 Participation is determined through:

• Simulation impact scores

• Attribution rankings

• Clause deployment effectiveness (tracked via DSS modules)

6.10.4 Tiered pools ensure inclusive, scalable, and transparent capital distribution while reinforcing the value of simulation-aligned, clause-governed systems.