ERC-7752 Lot Token

The CMX Protocol implements ERC-7752, a revolutionary token standard that treats every acquisition (lot) as its own on-chain record, enabling precise capital markets compliance and accounting.

Why Lot-Based Tokens Matter for Capital Markets

  • Per-Lot Cost Basis - Every token acquisition maintains its own cost basis for accurate tax reporting

  • Regulatory Lineage - Complete audit trail from initial issuance through all transfers

  • Compliance Controls - Granular restrictions based on acquisition method and timing

  • Tax Reporting - Built-in FIFO/LIFO accounting for automated regulatory filing

Key Capital Markets Use Cases

Asset Type
ERC-7752 Benefits

Equity & Options

Track every stock certificate or grant as individual lots with vesting metadata

Debt & Convertibles

Maintain coupon payment history and conversion lineage via parentLotId

Private Securities

Handle lock-ups, vesting schedules, and wash-sale rule compliance

Fund Accounting

Generate investor K-1s and Form 8949 reports automatically from on-chain data

Transfer Types for Regulatory Context

  • INTERNAL - Administrative transfers between controlled wallets (typically non-taxable)

  • SALE - Market transactions for consideration (taxable events)

  • GIFT - Gratuitous transfers between parties (gift tax implications)

  • INHERITANCE - Estate/probate distributions (stepped-up basis)

  • REWARD - Airdrops, staking yields, payroll RSUs (compensation income)

Technical Implementation

ERC-7752 uses a linked ERC-1155 architecture where each tokenId represents a unique lot with complete transaction history. This provides:

  • Efficient Auditing - Easy tracking of any token's complete history

  • Unique Metadata - Each transfer can have its own URI pointing to legal documents

  • Compliance Benefits - Essential for private RWA issuers requiring detailed reporting

Learn More

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