1. Executive Summary
The asset class of "Human Capital" in sports has historically been illiquid. ACE creates a standardized protocol to factor and tokenize these future income streams. By shifting from a lending model to a receivables factoring model, we create a secured asset class that offers predictable yield to investors while providing acceleration capital to athletes.
2. Market Inefficiency
- Liquidity Mismatch: Contract value is high, but cash flow is slow.
- Risk Mispricing: Traditional banks cannot underwrite "talent" risk.
- Access: Institutional investors lack a vehicle to access this uncorrelated asset class.
- Revenue Gap: Universities currently lack a mechanism to capture revenue from outside NIL deals.
3. The Solution: TAIS Protocol
Tokenized Athlete Income Streams (TAIS) represent a legal claim on future contract revenue. ACE utilizes a "Notice of Assignment" framework where the Payer (Brand/Collective) directs funds to the Protocol's Smart Contract, not the athlete. This creates a "closed-loop" payment system.
Split-Tranche Trusts: To balance immediate needs with long-term wealth, ACE splits capital into Tranche A (Acceleration - 60%) for immediate use and Tranche B (Preservation - 40%) locked in a yield-bearing trust until graduation.
4. Risk & Governance
4.1 Legal Assignment: We do not rely solely on code. We utilize tri-party agreements to secure the income stream at the source.
4.2 Insurance Wrappers: Yield reserves fund an Insurance Pool to protect principal against "Force Majeure" events (injury/cancellation).
4.3 Compliance: All liquidity providers undergo KYC/AML. The protocol is built to interface with traditional banking rails for fiat settlement.
4.4 Institutional Licensing: Smart contracts automatically route licensing royalties to Universities for IP usage, aligning institutional incentives.
5. Conclusion
ACE is the bridge between the efficiency of DeFi and the legal rigor of structured finance. We are building the Nasdaq for Human Potential.
References
- Buterin, V. (2014). Ethereum: A Next-Generation Smart Contract and Decentralized Application Platform.
- DL Research. (2025). The Katana Flywheel: Rethinking Incentives and Liquidity for Sustainability.
- NCAA. (2021). Name, Image, Likeness Policy. Retrieved from ncaa.org