Redemption releases the holder's claim and burns units only when the burn reconciles against the underlying asset. Supply retires in lockstep with the obligation it represented.
Redemption starts from the terms and entitlements already encoded, so what is being redeemed is never in question.
Maturity, call, put, and early-redemption rights are read from the terms set at issuance. A redemption is valid only if the encoded terms permit it at that moment.
Redemption instructions are signed under ML-DSA-65 by the holder or authorized agent. The party surrendering the claim is cryptographically identified against the register of record.
The redemption amount and any final accrued income are computed from on-ledger holdings and terms. The payout is derived from the record, not negotiated at the point of exit.
Outstanding restrictions, lockups, or pledge encumbrances are checked before redemption proceeds. A unit under a live charge cannot be redeemed out from under that charge.
The holder is paid and the units are retired together, so redemption cannot leave the ledger in an inconsistent state.
Settlement asset moves to the holder and units are burned in a single atomic step. The holder is never paid without surrendering units, and units are never burned without payment.
There is no window where a holder has both the payout and live units, or neither. The operation completes fully or not at all.
Any accrued coupon or dividend due at redemption settles in the same atomic operation. The holder's last entitlement is not stranded as a separate, later payment.
The settlement writes the amount paid, units burned, and authorizing keys to the chain. Every redemption is a signed, permanent entry in the history.
Retiring units is tied back to the sealed asset so circulating supply and the backing position stay consistent through exit.
Each burn references the sealed asset it drew against, restoring that portion of the asset's issuance capacity. The asset's freed capacity is a computed consequence of the burn.
Total issued supply decrements atomically with the burn. The circulating number remains exactly derivable from the ledger with no off-ledger adjustment at exit.
Where redemption discharges a claim on the underlying asset, the corresponding encumbrance is released in the record. The asset's status reflects that the obligation is retired.
When the last units against an asset are burned, the asset can be marked fully redeemed. Its lifecycle closes with a verifiable state, not an assumption.
The retired position is sealed into the append-only chain, leaving a complete and auditable end-of-life record.
The redemption and burn are appended to the chain linked to their predecessors. Exit takes a verifiable position in the same ordered history as issuance and servicing.
Redemption authorizations and closure records are signed under ML-DSA-65 (FIPS 204). The end-of-life record stays verifiable across the long horizons of tokenized real-world assets.
After redemption the ledger still reconstructs the unit's entire life — seal, issuance, servicing, burn — from a single chain. Nothing is deleted; the position is closed, not erased.
Closed redemption records remain resident in the owner's jurisdiction under its retention rules. The security's complete history stays where its law governs.