Here’s an overview of how Perpetual Digital Credit Note Tokens Work

1. Issuance on the Pecu Novus Blockchain

A company seeking to raise debt capital creates Perpetual Digital Credit Notes (PDCNs) on the Pecu Novus Blockchain.

Each note is:

Backed over 1:1 by PECU Coins, held in a transparent, smart contract-locked reserve and publicly viewable.

Structured to offer a perpetual yield of 8–10% annually, distributed daily in USXM tokens.

Created via a tokenized format that automatically embeds terms for yield, collateralization, and redemption.

2. Smart Contract Setup & Execution

A smart contract governs the entire structure:

Collateral validation: Verifies that the required PECU Coins are locked before issuance.

Interest calculation: Determines and distributes daily interest in USXM tokens to holders.

Redemption logic: Allows the issuer to redeem or repurchase PDCNs on a quarterly calendar basis, preserving flexibility.

3. Listing on HootDex

Once issued, PDCNs are listed on HootDex, a decentralized exchange built on the Pecu Novus Network. Here:

Investors can purchase the PDCNs using PECU or USXM.

Notes become fully liquid and tradable in a peer-to-peer environment, without needing centralized intermediaries.

Smart contracts manage all transaction logic, removing counterparty risk.

4. Yield Distribution to Investors

Investors receive daily interest payouts in USXM tokens, which are automatically sent to the Pecu Wallet that holds the PDCN tokens.

These payouts continue indefinitely (perpetual structure), unless the issuer redeems or buys back the PDCNs, in part or whole.

5. Redemption by Issuer

On a quarterly basis, issuers are obligated to redeem all USXM tokens issued for yield ONLY, they can optionally redeem PDCNs at face value plus any unpaid yield.

Redeemed PDCNs are removed from circulation by the issuer. All USXM tokens redeemed are locked in the backing wallet to provide additional collateral.