Status: pre-launch. This page describes target design; this document does not establish a deployed service.
DAV Archetypes
Current reading — 2026-09-27
These archetypes describe candidate risk profiles. On-chain assets establish neither immediate liquidity, complete valuation, absence of third-party dependencies nor immunity from law. Multipliers, immutable classifications and instrument-specific treatment need owner/counsel decisions. [I]
This reader boundary does not migrate interfaces, choose unresolved terms or prove deployment. See current status.
This page describes the constitutional archetype system. Read NAV, exit, and transparency language below as target design unless a narrower runtime proof has explicitly closed the lane.
The retained classification and multiplier proposals below require separate owner reconciliation; this page does not select an immutable archetype or an adopted reinsurance policy.
Historical risk archetypes and fixed multipliers — unresolved research, not current implementation
Three Archetypes
1. PPO (Pure Protocol Organization)
On-chain only. 1.0x L4 multiplier.
A PPO exists entirely on-chain. It has no physical assets, no supply chain, no off-chain dependencies. Its revenue comes from protocol operations bounded by eta = 0 (value created, not extracted): lending interest, market-making spreads that cover bounded liquidity risk, and data services.
Characteristics:
- In the target model, all assets are on-chain and verifiable in real time.
- NAV is computable deterministically (no appraisals, no estimates).
- Target design: Grace Exit payout would be immediate (all assets are liquid or near-liquid).
- Transparency score is naturally high (everything is on-chain by definition).
- Risk is limited to smart contract risk and market risk.
- L4 multiplier: 1.0x (baseline reinsurance requirement).
Examples: An on-chain AMM, a prediction market protocol, a lending pool, a data aggregation service.
Why 1.0x: PPOs have the lowest operational risk. No supply chain disruption. No physical inventory. No regulatory jurisdiction (beyond the chain itself). The baseline multiplier reflects this lower risk.
2. Physical DAV
Supply chain operations. 1.5x L4 multiplier.
A Physical DAV bridges on-chain governance with physical-world operations. It manages real assets: inventory, equipment, real estate, supply chains.
Characteristics:
- Assets include off-chain physical goods that require oracles or attestations for on-chain representation.
- NAV includes appraised values for physical assets (introduces estimation uncertainty).
- Grace Exit may involve liquidating physical assets (slower, less certain).
- Transparency requires both on-chain and off-chain reporting.
- Risk includes supply chain disruption, physical damage, regulatory action, and counterparty default.
- L4 multiplier: 1.5x (50% higher reinsurance requirement).
Examples: A coffee supply chain DAV, a solar farm cooperative, a manufacturing collective, a logistics network.
Why 1.5x: Physical operations carry risks that pure on-chain entities do not face. A warehouse can flood. A shipment can be seized. A supplier can default. The 1.5x multiplier requires Physical DAVs to hold 50% more reinsurance capital, reflecting the broader risk surface.
3. Software Organism
Server infrastructure. 1.2x L4 multiplier.
A Software Organism operates servers, compute infrastructure, AI models, or data pipelines. It is not purely on-chain (it depends on off-chain compute), but it has no physical supply chain.
Characteristics:
- Assets include server infrastructure, API keys, model weights, and data stores.
- NAV includes infrastructure valuations and recurring revenue multiples.
- Grace Exit involves migrating or shutting down infrastructure (moderate complexity).
- Transparency includes uptime metrics, cost reporting, and performance data.
- Risk includes infrastructure failure, dependency on cloud providers, and technical obsolescence.
- L4 multiplier: 1.2x (20% higher reinsurance requirement).
Examples: A SPECTRE node operator, an AI inference service, a data indexing network, a CDN.
Why 1.2x: Software organisms have higher risk than PPOs (server failure, cloud dependency) but lower risk than Physical DAVs (no physical inventory, no supply chain). The 1.2x multiplier sits between the two.
Archetype Comparison
| Property | PPO | Physical DAV | Software Organism |
|---|---|---|---|
| L4 Multiplier | 1.0x | 1.5x | 1.2x |
| Asset location | On-chain | On-chain + physical | On-chain + servers |
| NAV certainty | Deterministic | Estimated | Mixed |
| Grace Exit speed | Immediate | Slow (liquidation) | Moderate (migration) |
| Risk surface | Smart contract, market | All of PPO + physical | All of PPO + infra |
| Transparency ease | Highest | Lowest (needs attestation) | Medium |
Immutability (K9)
The archetype is declared at genesis and written into the DAV's founding receipt. In the target design, there is no function to change it. There is no governance vote to amend it. There is no migration path.
Why immutable?
- The L4 multiplier determines reinsurance requirements. Changing archetype mid-operation would let a Physical DAV (1.5x) reclassify as PPO (1.0x) and reduce its reinsurance, creating systemic risk.
- Investors and LP-100 holders made their assessment based on the declared archetype. Changing it post-facto is a material misrepresentation.
- The archetype reflects the fundamental nature of the organism's operations. A coffee supply chain cannot become a pure on-chain protocol by governance vote. Reality does not change because a vote passed.
Declaring at Genesis
When creating a new DAV:
- the signer(s) required by applicable law, the entity's governing instrument, or a valid competent mandate adopt the archetype through the public-DAV PRISM genesis decision receipt.
- A deterministic executor records the adopted archetype in the genesis receipt (K0).
- The L4 multiplier is permanently set.
- In the target design, all subsequent reinsurance calculations use this multiplier.
The choice is consequential and permanent. Choose accurately.
Historical predecessor wording — retained on 2026-09-28, not active rules
Predecessor passage 1
Every DAV declares its archetype at genesis. The archetype determines the L4 reinsurance multiplier, the operational assumptions, and the risk profile. Once declared, the archetype is immutable (K9).