TontineTrust

Transparent: Math & Proof of Reserves ensures Solvency

The use of distributed ledger technologies enables Tontine Trust members, and even the public generally, to audit the progress & forecasts of the Tontines through publically exposing;

• the location, composition and live value of underlying assets,

• a record of all contributions from & distributions to each of the pseudonymous members,

• a record of all fees charged,

• the projected medium and long-term payouts that each member can expect.

It is our belief that such transparency is the only true guarantee that there is no double counting of assets, no hidden liabilities and that the Tontine, or indeed any financial product, is fully funded for all of the expected payouts.

Blockchain First Custodians

The security, visibility, and efficiency of holding the Tontine assets is absolutely critical.

The blockchain custodian will enable each Tontine’s underlying cash & investments to be held in a permissioned, distributed ledger of ownership & transaction records, simplifying the process of transaction matching, settlement, custody, corporate actions and transaction reporting.

The solution should also facilitate the immediate and riskless settlement of market transactions such as subscriptions or redemption of exchange traded index funds as well as forex trades.

The system will handle cross border, multi-currency settlements operating around the clock including the regular transfers to the TON$ Card accounts of Tontine members. Further details will be announced in due course.

Creating a Global Solution: A World of Tontine Flavours

Once the contracts of the Smart Actuary are audited and integrated with the custodian(s), issuing new Tontines denominated in different currencies and investing in different asset classes is relatively straightforward for different types of consumers.

Tontines for Traditional Investors

Mainstream consumers segmented into narrow age brackets will be able to join ETF Tontines which will invest predominantly in an ultra-diversified mix of the safest, most liquid funds in the world operated by some of the largest asset managers on the planet, for example, Blackrock ($5 Trillion in Assets Under Management), Vanguard ($4 Trillion), State Street ($2.4 Trillion) and others such as ICBC Credit Suisse.

In addition to better servicing the needs of mainstream consumers in developed markets, these types of ETF Tontines can provide a means of securing lifetime incomes for consumers in less developed markets as well as consumers in markets where there is significant exposure to political and/or financial system risks such as Venezuela or Zimbabwe.

CryptoTontines for CryptoCapitalists

A small but growing section of the global population has eschewed the FIAT economy and are now partly or wholly managing their financial affairs within the cryptoeconomy. This has even led to the development of Bitcoin IRAs and now Ethereum IRAs.

For such cryptocapitalists, other than the IRAs, there are few other financial products and no products that we are aware of which directly address with the longevity risk.

Crypto Tontines can address this problem by allowing such consumers, or the organisations they work with, to contribute towards retirement savings schemes denominated in Bitcoin or whole portfolios of cryptocurrencies. This will ensure that such consumers can put in place a secure crypto denominated lifetime income stream for when they are older.

Specialised Tontines

We have already seen interest from groups around developing specialised Tontines customised around certain asset categories or regional factors. We can anticipate that such interest will in time materialize into specialised Tontines such as:

• Real Estate Tontines,
• Gold Tontines,
• Country Specific Tontines,
• Organisational Pension Plan Tontines,
• Community Tontines (typically targeted around funding the construction or protection of important community assets such as Hospitals etc). 

The TON$ Card Account

• Automatically or manually convert between currencies
• Send payments to other accounts or recipients
• Monitor Transactions on your TonCard Debit Card

Our Smart Actuary system constantly updates its records to determine an accurate projection of expected future payouts for all continuing members of the Tontine based upon:

• Updated performance of the underlying investments versus expected performance
• Updated member longevity projections versus past projections
• Portfolio "glide path" adjustments  as the average member age increases