A real-world asset, or RWA, is a physical, tangible asset that exists outside of the digital or virtual space. These can include real estate, commodities, art, equipment, intellectual property, etc. These RWAs have inherent value in the physical world and are often used as a store of value, means of generating income, or collateral in financial transactions

Tokenizing a real-world asset (RWA) involves creating digital tokens on the blockchain that represent ownership or rights to a tangible asset. This process unlocks significant value, accessibility, and efficiency compared to traditional asset management and investment methods

For example, tokenization enables fractional ownership, allowing broader participation in asset ownership. It also improves liquidity by creating a marketplace where investors can trade in and out of previously illiquid assets. Additionally, tokenization removes geographic barriers, enabling global investors to participate in asset ownership

Blockchain technology further enhances transparency and trust by providing a secure, immutable ledger for all transactions, ownership records, and cash flow distributions

Ownership is recorded on a blockchain, which provides an immutable and transparent ledger. Smart contracts can automate enforcement of ownership rights, such as receiving royalties or profits, while legal frameworks often link tokens to the underlying physical assets

Real-world assets represent ownership of tangible, physical assets with intrinsic value, while cryptocurrencies are digital currencies not tied to physical assets. Cryptocurrencies are often used as a medium of exchange or store of value

Investors can earn income through passive income via royalties, rental income, or other asset-based revenue streams. Investors can also benefit from capital appreciation - when the value of the underlying asset increases, the token holders benefit from the asset's appreciation

Oil and gas assets refer to the physical reserves of oil and natural gas, along with the infrastructure needed to extract, refine, and distribute these resources. These assets include exploration rights, drilling equipment, production facilities, pipelines, and storage facilities

Tokenized oil and gas assets are digital representations of ownership in physical energy assets, such as oil wells or gas fields, created using blockchain technology. These tokens provide investors with exposure to the cash flows generated by the asset, allowing for fractional ownership and easier transferability

By buying and holding tokenized assets, you gain exposure to the underlying cash flows generated by the oil or gas production. Returns are typically distributed as yield based on the asset's profits, including revenue from oil and gas sales

Several factors influence oil and gas prices, including: global supply and demand, OPEC (Organization of Petroleum Exporting Countries) decisions, technological advancements in extraction, economic conditions, environmental regulations, and currency fluctuations

Upstream refers to the exploration and production activities. Midstream involves the transportation, storage, and processing of oil and gas. Downstream is the refining, distribution, and sale of petroleum products such as gasoline, diesel, and chemicals

Reserves are the estimated amount of oil or gas that can be economically recovered from a given deposit. Reserves are classified into different categories based on their likelihood of being recovered: proven reserves are very likely to be recovered, probable reserves are reasonably likely to be recovered, and possible reserves are less likely to be recovered

Tokenized oil and gas assets are subject to local regulations, including securities laws, anti-money laundering (AML) policies, and know-your-customer (KYC) requirements

1881 is developing a first-of-its-kind platform that simplifies investment in oil and gas assets. These assets include real-world properties that actively produce oil, natural gas, or other hydrocarbons

Our vision is to make financial interests in these properties accessible to a global investor base in a way that is cost-effective, easy to trade and transfer, and profitable for investors

Our token represents equity interest in a special purpose vehicle (SPV), which holds financial interests in oil and gas assets. The SPV manages these interests, collects income from production activities already taking place on the properties, and distributes earnings to token holders

1881 has partnered with a seasoned oil and gas operator with over 25 years of experience and strong relationships with international oil companies. The operator has a successful track record of acquiring and managing oil and gas blocks

The operator is a major long-term natural gas producer with multiple agreements in place to capitalize on natural gas production, including liquified natural gas (LNG) and compressed natural gas (CNG). Together, the operator and 1881 plan to acquire working interests in energy-rich natural gas assets, ensuring that 100% of the acquired net revenue benefits 1881’s token holders via the special purpose vehicle

1881 is partnering with the Plume Network to provide access to the income generated by the underlying oil and gas asset. The Plume Network is a decentralized blockchain protocol focused on tokenizing real-world assets and enabling global asset financing

By completing the onboarding process on Plume's platform, investors can begin participating in the offering

Once the initial lockup period ends, tokens can be traded on supported secondary marketplaces working on the Plume Network, providing liquidity and flexibility for investors

The token price is market-driven and reflects expected future cash flows to token holders. To account for resource depletion over time, tokens will gradually be bought back and burned (similar to a stock buyback) throughout the agreement. By the end of the term, all tokens will have been bought, ensuring that the well's depletion does not negatively impact token price

Cash flows will be distributed to investors on a monthly basis in the form of USDC and 1881's token

The operator we are partnering with has over 25 years in the oil and gas sector, and will help with the vetting and due diligence involved with selecting high-quality currently producing assets. Additionally, blockchain technology ensures transparency and accountability, while legal agreements protect investor rights and revenue sharing

Investors will have access to historical production data and financials for the acquired assets, ensuring transparency and allowing investors to make informed decisions

In the U.S., private ownership of mineral rights has driven a strong oil and gas investment market. Globally, however, these assets are primarily controlled by governments and national oil companies. We have partnered with operators who access these resource-rich assets through licensing agreements, production-sharing contracts, and joint ventures, ensuring shared revenue and profits