Maturity Redemption

Purpose: Maturity Redemption implements the maturity lifecycle for bond-type instruments. Before maturity, tokens transfer normally. After maturity, transfers are blocked and holders redeem tokens for a denomination asset at configured face value.

• Doc type: Reference
• What you'll find here: Business impact, risks, controls, failure modes, auditability, dependencies, and ordering notes
• Related:
  • Token Features Catalog
  • Asset Contracts
  • Fixed Treasury Yield
  • Compliance Modules

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Interface (capabilities)

This feature exposes the following capabilities. It implements a three-phase state machine: pre-maturity (normal transfers), mature (governance-triggered transition), post-maturity (transfers blocked, redemption enabled).

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Business impact

• Holders: Pre-maturity: normal transfer behavior. Post-maturity: transfers blocked; must call redeem(amount) to receive denomination asset at face value. Tokens are burned on redemption.
• Issuer: Must fund the treasury contract with sufficient denomination asset before or at maturity. Underfunded treasury blocks all redemptions.
• Economics: State machine with three states: pre-maturity → mature (triggered by GOVERNANCE_ROLE) → post-maturity (redemption window). Token supply decreases as holders redeem.

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Risks & abuse cases

• Underfunded treasury at maturity: If the denomination asset treasury does not hold sufficient balance to cover all outstanding tokens at face value, redemptions will revert for holders who try to redeem when funds run out.
• mature() called too early: GOVERNANCE_ROLE can call mature() at any time, not just at the scheduled maturity date. Premature maturity blocks transfers unexpectedly. Use time-locked governance for mature() calls.
• Partial redemption cliff: Holders who do not redeem during the redemption window (if one is defined) may lose access. Define a clear redemption window and communicate it to holders.
• Treasury address change: setTreasury() can redirect redemption payouts. Audit all treasury address changes.

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Controls & guardrails

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Failure modes & edge cases

• Redemption revert on empty treasury: If treasury is depleted, later redemptions revert. First redeemers get paid; last redeemers may not if treasury is underfunded.
• mature() not called at scheduled date: Maturity does not trigger automatically. An off-chain process must call mature() at the correct time. Missed maturity date means normal transfers continue past the intended date.
• Face value misconfiguration: Face value is set at deployment. A misconfigured face value cannot be changed post-deployment (immutable by design).

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Auditability & operational signals

• Matured(maturityDate, denominationAsset, faceValue) — emitted when mature() is called.
• MaturedEarly(triggeredBy, timestamp) — emitted when matureEarly() is called.
• Redeemed(holder, tokenAmount, denominationAmount) — emitted per redemption. Monitor for redemption volume and treasury drawdown rate.
• Treasury balance monitoring: track denomination asset balance in treasury; alert when balance falls below total outstanding tokens × face value.

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Dependencies

• Denomination asset (ERC-20) — the asset paid to holders on redemption (e.g., USDC, stablecoin). Must be deployed and accessible.
• Treasury contract — must hold sufficient denomination asset at maturity. Treasury address set via setTreasury().
• Off-chain process — must call mature() at the scheduled maturity date.

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Compatibility & ordering notes

• supportsRewriting = false — does not modify amounts. Post-maturity transfer blocking is enforced via canUpdate() (reverts for all non-redemption transfers).
• Order first in the feature array (transfer restriction). Must run before fee features.
• Compatible with Fixed Treasury Yield: both can be active simultaneously for coupon-paying bonds. Yield is pull-based and independent of maturity state.
• Compliance modules run before features — compliance can block transfers pre-maturity; Maturity Redemption blocks post-maturity regardless.

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Change impact

• Enable at deployment: Must be configured at deployment with face value and maturity parameters. Cannot be added post-deployment without these parameters.
• Disable before maturity: Can be removed without effect (no redemption has occurred).
• Disable after mature() is called: Transfer blocking ceases; holders can no longer redeem. Do not disable post-maturity without a redemption alternative.
• Treasury address change: Effective for all future redemptions. Existing redemption transactions in-flight complete at old treasury.

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See also

• Token Features Catalog — return to the full feature catalog
• Fixed Treasury Yield — coupon payments compatible with maturity
• Compliance Modules — transfer enforcement layer