# New Capital System (RWA / Programmable Capital)

## Purpose

The New Capital System enables governments, regulators, and institutions to:

* distribute capital programmatically,
* enforce eligibility and policy constraints,
* maintain full auditability and transparency,
* prevent duplication, leakage, and fraud,
* operate at national or population scale.

This system is built on **TokenTable** for allocation and execution, and **Sign Protocol** for verifiable evidence.

***

## What problems this solves

Traditional capital programs suffer from:

* opaque beneficiary selection,
* manual reconciliation and audits,
* duplicate or fraudulent claims,
* poor interoperability between agencies,
* weak post-distribution accountability.

The New Capital System replaces these with **rule-driven, evidence-anchored capital flows**.

***

## Core components

### 1) Eligibility layer (input)

Inputs may include:

* identity credentials ([New ID System](/national-systems/new-id-system.md)),
* income or residency proofs,
* compliance checks (AML, sanctions, sector restrictions),
* program-specific attributes.

Eligibility evidence is cryptographically verifiable and reusable.

***

### 2) Allocation engine (TokenTable)

TokenTable acts as the **distribution and allocation engine**, supporting:

* one-to-many distributions,
* vesting schedules,
* cliffs and linear unlocks,
* revocation and clawback logic,
* delegated claiming,
* batch execution.

Allocations can represent:

* cash-like funds (CBDC / stablecoins),
* subsidies or benefits,
* grants or credits,
* tokenized assets or rights.

***

### 3) Settlement rails

Funds may settle on:

* private CBDC rails,
* public regulated stablecoins,
* hybrid bridges between private and public rails.

The capital system is **rail-agnostic**, but evidence-consistent.

***

### 4) Evidence & audit layer (Sign Protocol)

Sign Protocol anchors:

* eligibility attestations,
* allocation manifests,
* execution and settlement references,
* compliance approvals,
* post-distribution audits.

Evidence is immutable, queryable, and verifiable.

***

## Canonical flows

### Flow 1: Welfare / subsidy distribution

1. Define program ruleset (eligibility + caps)
2. Verify citizens via New ID System
3. Generate allocation table (TokenTable)
4. Execute distributions
5. Anchor evidence (ruleset hash + execution refs)

***

### Flow 2: Grants & incentives

1. Accept applications
2. Evaluate eligibility and scoring
3. Publish allocation results
4. Release funds via schedules
5. Provide transparent public audit trail

***

### Flow 3: Enterprise or sector support

Used for:

* SME stimulus,
* agricultural subsidies,
* energy credits,
* education vouchers.

Rules enforce **who**, **how much**, **when**, and **under what conditions**.

***

## Example allocation manifest (illustrative)

```
{
  "program_id": "SME_SUPPORT_2026",
  "ruleset_version": "v2",
  "asset": "CBDC",
  "total_budget": "10000000",
  "currency": "CBDC",
  "allocations": [
    {
      "beneficiary_ref": "did:example:entity:company123",
      "amount": "50000",
      "vesting": "linear_12_months",
      "eligibility_ref": "attestation:0xabc..."
    }
  ],
  "generated_at": "2026-05-01T10:00:00Z"
}
```

***

## Controls & safeguards

* hard caps per identity or entity
* duplicate prevention via identity linkage
* revocation and clawback mechanisms
* emergency pause
* versioned rulesets for audit replay

***

## Where to go next

* Identity prerequisites: [New ID System](/national-systems/new-id-system.md)
* Payments rails: [New Money System](/national-systems/new-money-system.md)
* Distribution tooling: [TokenTable](/products-sign-ecosystem/tokentable.md)
* Evidence layer: [Sign Protocol](/products-sign-ecosystem/sign-protocol.md)


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