# 2.8.6 Multi-Level Asset & Token Structures

OAE facilitates multi-level asset and token structures. This framework allows tokens representing transferable rights to be re-digitized as assets (unless re-onboarding and further division has been disabled for specific tokens at a smart contract level). These re-digitized assets can then be linked to new tokens, and this process can be iterated indefinitely.

| <p><strong>Example 1:</strong> John registers his company, ABC LTD, on AssetChain, holding a 51% controlling equity share, with two associates, Andrew and Matthew, holding 24% and 25% equity shares, respectively. As the smart contract administrator, John creates three NFT ownership tokens corresponding to these shares, which can be transferred fully or partially without restrictions. Matthew chooses to further fractionalize his 25% share into 1 million co-ownership units. To achieve this, he re-registers his NFT on AssetChain as a new smart contract and issues either 1 million fungible tokens or a series of 1 million NFTs, depending on whether he wants each unit to be indivisible.</p><p><br></p><p><strong>Example 2:</strong> Andrew decides to secure a loan using his 24% equity share as collateral. To facilitate this through AssetChain, he follows the same process as Matthew by re-registering his NFT share as a new smart contract. Upon completion, the lender receives an NFT representing the collateral right on Andrew's equity share. This NFT is automatically removed from Andrew's wallet and nullified once he repays the specified amount of tokens to a designated wallet address.</p><p><br></p> |
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This structure supports intricate asset and ownership models, offering flexibility and scalability for digital asset management on the blockchain.

<figure><img src="/files/CNHt9cJD10XIQHES910z" alt=""><figcaption><p>- AC 10 cardinal rules, assets and rights</p></figcaption></figure>


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