MirrorTokens

They represent fractional claims to future token delivery, issued by token holders who have signed a Token Delivery Commitment (TDC). MirrorTokens are fully transferable, non-custodial, and settled onchain.

​

🧠 What Does a MirrorToken Represent?

Each MirrorToken gives its holder:

• ✅ A proportional right to a fixed amount of tokens, scheduled for future delivery
• ✅ A direct legal claim under contract law (via the TDC)
• ✅ Access to onchain redemption once tokens are delivered to the smart contract
• ✅ The ability to transfer or trade those rights like any ERC-20 asset

They are not synthetic, not pooled, and not tied to protocol governance. They are one-to-one representations of a delivery obligation — like a tokenized IOU that is enforceable and automatable.

​

⚙️ Key Properties

---

​

🔐 How MirrorTokens Settle

1. VC signs a Token Delivery Commitment (TDC)
   Legally binding promise to deliver tokens to a smart contract vault on a schedule.
2. 1st deploys the MirrorToken contract
   Vault-enabled ERC-20 contract with fixed supply and immutable logic.
3. Issuer receives MirrorTokens
   These represent the full future obligation. The issuer can now sell or transfer them.
4. Tokens are delivered over time
   The issuer sends tokens to the contract at each unlock milestone.
5. Holders withdraw tokens
   Anyone holding MirrorTokens can redeem a proportional share of what’s been delivered.

→ See full protocol flow
→ Read about TDCs

---

​

⚖️ Why They’re Legally Sound

MirrorTokens are not securities or pooled investments.
They are commodity forward contracts with physical settlement and no dependency on issuer performance. Legally speaking:

• The value comes from delivery of tokens, not from any business or DAO activity
• The issuer has no voting rights, no profit rights, no equity representation
• Holders have direct enforcement rights against the signer of the TDC

→ Read Legal Framework

---

​

📈 How MirrorTokens Are Valued

MirrorTokens are priced like real-world forward contracts:

Value = (Expected Spot Price × Delivery Probability) – Risk Premium

Factors that affect pricing:

• ⏱️ Time until delivery
• 📉 Underlying token volatility
• 🧾 Issuer creditworthiness
• 📊 Liquidity in secondary markets
• ⚠️ Enforcement confidence

As delivery gets closer, uncertainty decreases — and the value of a MirrorToken converges toward the spot price of the underlying token.

---

​

🤝 What You Can Do with a MirrorToken

• 🛒 Buy exposure to locked tokens on secondary markets
• 💸 Sell vesting rights for liquidity — without custody or legal ambiguity
• 🧮 Integrate with vaults, AMMs, or structured products
• 🧑‍⚖️ Enforce delivery in court if the issuer fails to perform

MirrorTokens are designed to be interoperable, enforceable, and simple to reason about.

---

​

🧠 Frequently Asked

Q: Is this like a wrapped SAFT?
No. MirrorTokens don’t represent the SAFT itself — they represent delivery rights created by a new legal contract (TDC). That’s what gives them clarity and enforceability. Q: Can MirrorTokens expire?
No. They are valid until all committed tokens are delivered. There’s no forced redemption or burn. Q: What happens if the VC doesn’t deliver?
MirrorToken holders have legal standing to enforce the TDC directly — including specific performance or damages. Q: Can MirrorTokens be used in DeFi?
Yes. They’re ERC-20 tokens and can be integrated into vaults, DEXs, lending markets, etc.

---

​

TL;DR

MirrorTokens are ERC-20 forward contracts for token vesting — clean, enforceable, and on-chain.

• Not derivatives
• Not pooled
• Not synthetic
• Just delivery

→ Next: Read about Token Delivery Commitments →