RWA Asset Construction and Securitization Design

1）Mining Asset Pool Formation

DogeBank will conduct a comprehensive review and integration of its global Dogecoin mining assets. The evaluation process will involve analyzing each mining machine based on key metrics such as: Brand (e.g., Volcano Mining, Big Dog Mining, Bitmain)、Model、Hashrate performance、Remaining useful life、Historical mining returns.

Each mining machine will be precisely assessed and graded to ensure its quality and performance. The most stable-performing machines, with good return expectations, will be selected for pooling. These machines will then be grouped into multiple mining asset pools, each with distinct characteristics.

Ø Diversification within pools: The asset pools will be diversified based on location, brand composition, operating lifespan, and other factors. This ensures that no single variable disproportionately impacts the overall value of the pool.

Ø Risk mitigation: By creating multiple asset pools with varied features, DogeBank will minimize the risks associated with relying on a single factor (e.g., a specific brand or location) and enhance the pool’s stability and resilience to market fluctuations.

2）Hashrate Bond Design

Ø Product Tranching:Based on the constructed mining machine asset pools, DogeBank will issue tranching-style hashrate bonds. These bonds will be divided into senior, mezzanine, and subordinated tranches.

1. Senior Tranche Bonds are targeted at low-risk-tolerance investors seeking stable returns, such as commercial banks and insurance companies. These bonds have priority in interest and principal payments, and will offer a fixed interest rate, which will be benchmarked against returns from low-risk bonds of similar duration in the market. The rate will be fine-tuned based on expected returns from Dogecoin mining machine assets, with an expected annual yield of 4%–6%.

2. Mezzanine Tranche Bonds are designed for investors with moderate risk tolerance, such as some fund companies and corporate finance entities. These bonds provide both fixed interest income and a share of excess returns from the asset pool, yielding a target annual return of around 6%–10%.

3. Subordinated Tranche Bonds will mainly be held by DogeBank itself or investors with high-risk tolerance and deep understanding of the digital asset market. These bonds will absorb any initial losses within the asset pool, providing a risk buffer for senior and mezzanine investors. In return, subordinated investors will receive all residual earnings after the senior and mezzanine bond obligations are met, with potential annual yields exceeding 20%.

Ø Maturity Structure:Based on the average service life of mining machines and market demand for bonds of varying durations, DogeBank will design diverse bond tenures:

1. Short-term hashrate bonds (1–2 years) will address the needs of investors focusing on liquidity management and phased returns.

2. Medium-term bonds (3–5 years) will align with institutional investors' asset allocation cycles, offering a more stable return source.

3. Long-term bonds (5+ years) will suit pension funds, social security funds, and other large-scale institutional investors pursuing steady long-term value appreciation with low risk tolerance.

By offering a well-structured range of maturities, DogeBank aims to attract a broader investor base and enhance the market appeal and success rate of its hashrate bond offerings.

3）Trust Product Design

Ø Pooled Capital Trust Plans：DogeBank will collaborate with professional trust institutions to launch pooled capital trust plans based on Dogecoin mining machine assets. These trust plans will raise funds from qualified investors, who will subscribe to trust shares. The raised capital will be specifically allocated to invest in selected Dogecoin mining machine assets.The trust institution will manage and operate the mining assets professionally based on asset pool information and investment strategies provided by DogeBank. Income from the trust product will be distributed flexibly, either quarterly or annually, depending on the asset pool’s performance. Upon maturity, principal and remaining earnings will be returned to investors based on the value realization and disposition of the mining assets.

Ø Return Distribution and Risk Isolation：To ensure investor security, the trust plan will prioritize capital preservation and expected returns. Revenue streams will include mining income and asset disposal proceeds, which will be distributed to investors according to predetermined priority and ratios defined in the trust contract.Furthermore, the plan adheres to strict asset segregation principles, ensuring that the trust assets are legally and financially independent from the trust institution’s proprietary funds or other trust assets. Even if DogeBank or the trust institution faces operational risks, the trust property will remain unaffected, effectively protecting investor interests.