The Fiduciary Theory of Entropy: Collapsing the Uncertainty Coefficient (Uc) in Tokenized Real-World Assets
Authors/Creators
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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The Fiduciary Theory of Entropy.pdf
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Additional details
Identifiers
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