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Crypto / Token

vr.wm-eco-013 · wm-eco-013-crypto-token

Transferable tokens recorded on a distributed ledger, with issuer, rights and transfer rules.

World Models Society, people and institutions SOC.ECO.TOK
Bundle → Layer → Finding → QuestionsClassifiersWhat it isWhy it existsDistinguishing featuresWhat robots and AI may and may not doMoral aspectsOwnersLinks to other meta-modelsIdentity and identifiersDirect propertiesRecognitionCapabilities and actionsHazards and failure modesStandards and interfacesContext of useSources

Bundle → Layer → Finding → Questions Filled

3 bundles · 3 layers · 5 findings · 11 questions

Token definition What the token is and who issued it.

Issuance and standard

The ledger, contract and standard that define the token.

Token contract

The ledger and contract address or native asset that defines the token.

  1. On which ledger network does the token exist, and is it native or contract-issued?
  2. Which contract address and token standard define it?
  3. Who issued the token, and can the issuer still mint, freeze or burn it?

Supply rules

Total supply, decimals and the rules that change supply.

  1. What is the current and maximum supply, and how many decimals does it use?
  2. Which rules or parties can increase or reduce supply?
Rights and backing What holding the token gives and what stands behind it.

Claim and reserve

The right conveyed and any reserve or referenced asset.

Conveyed right

The economic or legal right the token claims to convey.

  1. Does the token claim to represent money, a security, a utility right or an off-chain asset?
  2. Which document states the holder's rights, and which law governs them?

Reserve attestation

Evidence for reserves or referenced assets behind the token.

  1. Is the token backed by reserves, and who attests them, how often?
  2. When was the last attestation, and does it cover the full supply?
Regulatory status How the token is classified and authorized.

Classification and authorization

Legal classification and licences in relevant jurisdictions.

Legal classification

How regulators classify the token.

  1. How is the token classified under the law of the relevant jurisdiction?
  2. Is an authorized issuer or a published disclosure document required, and does one exist?

Classifiers Filled

Family
World Models
Category
Society, people and institutions
Entry kind
standalone-mm
Navigation path
NAV.SOC.ECO.TOK
Domain
SOC.ECO.TOK
Industry
Cross-industry
Tags
cryptotokensoc.eco.tok

What it is Filled

A crypto token is a transferable unit of value or right recorded on a distributed ledger, either native to the ledger or issued by a smart contract, such as a cryptocurrency, a stablecoin, a fungible token or a non-fungible token. The ledger network itself, the smart contract code, a wallet or account and the off-chain asset a token may represent are separate subjects.

Why it exists Filled

Transferable tokens recorded on a distributed ledger, with issuer, rights and transfer rules.

Distinguishing features Filled

  • Recorded and transferred on a distributed ledger, not in an account kept by a single institution.
  • A unit defined by a ledger or contract, distinct from the network, the contract code and the wallet that holds it.
  • The token and the right it claims are separate: a token can exist without any enforceable claim behind it.
  • Covers fungible and non-fungible tokens, while traditional money instruments and securities have their own models.

What robots and AI may and may not do Filled

Must not

  • Transfer, swap, buy or sell tokens on anyone's behalf.
  • Handle, store or request private keys or seed phrases.
  • Give personalized investment advice about a token.
  • Present a token as backed, regulated or redeemable without evidence.
  • Link pseudonymous addresses to real persons without a lawful basis.

Only with a human decision

  • Any decision to acquire, dispose of or transfer tokens.
  • Classifying a token as a security, e-money or other regulated instrument.
  • Reporting suspected fraud or sanctions exposure to authorities.

May

  • Identify a token by ledger, contract address and standard.
  • Report supply, holder distribution and transfer history from public ledger data.
  • Report published reserve attestations and disclosure documents.
  • Flag tokens with admin keys that allow minting, freezing or upgrading.

Moral aspects Filled

  • Retail holders can lose savings through fraud, hacks, unbacked claims and extreme volatility.
  • Public ledgers expose transaction histories that can be linked to people.
  • Tokens can move value across borders outside sanctions and anti-money-laundering controls.

Who is affected

  • Token holders and investors
  • Issuers and reserve custodians
  • Regulators and law enforcement
  • People whose addresses can be de-anonymized

Owners Filled

Steward

The issuer of the token, or the community governing a native ledger asset, answers for its definition and disclosures.

Master systems

  • The distributed ledger itself
  • Regulatory register of authorized issuers and white papers
  • Digital token identifier registry

Links to other meta-models Filled

requires

  • wm-vrt-010-distributed-ledger-network - A token exists only on a distributed ledger network.

references

  • wm-vrt-011-smart-contract - Contract-issued tokens are defined by a smart contract.

neighbor

  • wm-eco-004-money-instrument - Traditional money instruments are a neighbouring class that stablecoins imitate.

What else AI and robots need to interact with it Filled

Identity and identifiers required Filled

  • Identified by ledger network plus contract address, or by the native asset symbol of the ledger.
  • A non-fungible token is identified by contract address and token identifier.
  • An ISO 24165 Digital Token Identifier can identify the token across ledgers.

Direct properties not applicable Not applicable

Not applicable

A crypto token is a ledger record with no physical form; supply and price are data, not physical measurements.

Recognition optional Filled

  • A token has a ledger, a contract or native definition, a symbol and a supply.
  • Often confused with the ledger network, with a wallet balance or with the off-chain asset it claims to represent.

Capabilities and actions required Filled

  • Can be transferred between addresses according to the ledger rules.
  • Can be minted, burned or frozen where its contract grants such powers.
  • Can be held in custody, bridged to other ledgers or locked in other contracts.

Hazards and failure modes required Filled

  • Irreversible loss through stolen keys, scams or contract exploits.
  • Collapse of value when backing or redeemability fails.
  • Use for money laundering or sanctions evasion.

Standards and interfaces required Filled

  • ERC-20 and ERC-721 token standards on Ethereum-compatible ledgers.
  • ISO 24165 Digital Token Identifier.
  • Public ledger node and block explorer interfaces for supply and transfers.

Context of use required Filled

  • Regulated in the European Union under the Markets in Crypto-Assets Regulation for issuers and service providers.
  • Virtual asset service providers fall under FATF recommendations on anti-money laundering, including the travel rule.
  • Tax treatment of holdings and disposals depends on national law.

Sources Filled

  1. Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA), European Union
  2. ISO 24165 Digital token identifier (DTI), ISO
  3. Guidance for a risk-based approach to virtual assets and virtual asset service providers, FATF

Open questions

  • Planned model: boundary questions, research and every section remain to be written.

Machine files

Card as JSON Specification AGENTS.md Card backlog vercy.card/1

Provenance

planned (registry candidate) · todo

Built from: models/runtime-index.json, ver-cy/world-models/card-supplements/wm-eco-013-crypto-token.json

Planned entry, hidden from the catalogue until researched.