Rights Instruments

A rights instrument packages a defined right or entitlement into a machine-verifiable economic object that can be offered, negotiated, traded or exercised subject to its terms.

Instrument fields

Typical fields include underlying DCO/object, issuer, holder/controller, right type, scope, restrictions, quantity/capacity, duration, jurisdiction, transferability, pricing/offer terms, settlement terms, evidence references and signatures.

Issuance

Issuance must come from an Entity with authority over the right being represented. ENTITY does not create a legal right merely because a JSON object exists.

Secondary transfer

A secondary transfer should preserve the issuance/transfer lineage and apply only terms that were validly attached to the instrument. Originator participation can exist, but only when explicit signed terms require it.

Use

Exercise/usage consumes or activates whatever the instrument actually grants. Usage evidence can later support settlement, derivative lineage or economic consequence.