Published May 5, 2026 | Version v1

The Fiduciary Theory of Entropy: Collapsing the Uncertainty Coefficient (Uc) in Tokenized Real-World Assets

Description

Global capital markets currently operate on what this paper defines as "Paper Fiction"—retrospective, narrative-based auditing methodologies that structurally ignore the real-time kinetic decay of high-consequence physical assets. This paper presents the Sovereign Oracle Protocol, a decentralized fiduciary framework that utilizes 8-decimal thermodynamic titration to continuously quantify and eliminate the systemic Uncertainty Coefficient (Uc). By establishing a new, physics-based discount rate (Φ), we introduce a deterministic formula for Adjusted Net Present Value (NPVadj) that functions as an immutable, real-time price floor for Real-World Asset (RWA) tokenization. Moving beyond static Proof of Reserve (PoR), the protocol establishes a dynamic paradigm of Proof of Kinetic Reserve (PoKR) to align digital valuation directly with physical matter viability. Furthermore, this architecture provides a regulatory "Safe Harbor"—the Paul Atkins Shield—enabling presumptive, mathematical compliance with SEC 1502/1504 and European Union MiCA frameworks through automated empirical proof rather than manual oversight.

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Additional details

Related works

Describes
Working paper: 10.5281/zenodo.20548469 (DOI)
Is documented by
Working paper: 10.5281/zenodo.20548898 (DOI)
Working paper: 10.5281/zenodo.20549045 (DOI)
Working paper: 10.5281/zenodo.20564086 (DOI)

Software

Repository URL
https://github.com/Regsiren/Auditor-OS-V50-Sentinel
Programming language
Python
Development Status
Active