Module 3 — CORECM (Carbon Ore, Rare Earth, and Critical Minerals)

Section 10: Module 3 — CORECM (Carbon Ore, Rare Earth, and Critical Minerals)

RWA Tokens Platform Whitepaper · Version 10.0 Groovy Company, Inc. · May 2026 Document Reference: RWA-M3-SPEC-001 v1.0

Module 3 — CORECM — is the strategic-minerals supply-chain tokenization module. It addresses equity tokenization of US strategic-minerals assets through the Basin-Asset Entity (BAE) corporate vehicle. Module 3 introduces the second module-aware Transfer Hook extension — Control REG-42 federal-action variant — which automatically halts trading on detection of qualifying federal events affecting the basin asset, with a 60-minute SLA from detection to enforcement.

Module 3 is true blue-ocean territory: no other tokenization platform offers federal-action coordination at the runtime layer for strategic-minerals supply-chain assets.

10.1 Scope

Asset Category

Examples

Mineral basins

Lithium, copper, nickel, cobalt, manganese, graphite basin holdings

Mining concessions

Active or pre-production mining concessions on critical minerals

Coal-derived REE recovery

Coal-derived Rare Earth Element extraction facilities (per DOE Critical Materials Strategy)

Critical-minerals processing facilities

Refining, separation, and beneficiation operations

Supply-chain logistics infrastructure

Strategic-minerals-specific transport, warehousing, and trans-shipment facilities

Module 3 explicitly addresses minerals and supply-chain assets identified by US federal frameworks as strategically important. Non-strategic mining assets (e.g., aggregate quarries, common-construction-mineral basins) are outside Module 3 scope.

10.1.1 The CORECM Acronym

CORECM expands as Carbon Ore, Rare Earth, and Critical Minerals:

Carbon Ore — coal-derived value chains, specifically coal-to-products pathways including DOE-recognized REE recovery from coal byproducts
Rare Earth — the 17 rare-earth elements (lanthanides plus scandium and yttrium); separation, refining, and finished-product applications
Critical Minerals — the broader USGS Critical Minerals List, including lithium, cobalt, nickel, manganese, graphite, copper, and other minerals deemed critical to US economic and national security

10.2 The BAE Structure

The Basin-Asset Entity (BAE) is the corporate vehicle that holds the basin or mineral-asset interest. Like the Module 2 SAE, the BAE is structured as a Nevada corporation to support Empire Stock Transfer §17A common-stock custody.

10.2.1 BAE Lifecycle

Stage 1 — Asset Identification
  - Basin / mineral concession identified
  - USGS Critical Minerals List eligibility verified
  - DOE Critical Materials Strategy alignment verified (where applicable)
  - Initial geological / engineering assessment commissioned
  - Federal land vs private land status documented

Stage 2 — Federal-Framework Mapping
  - Section 232 exposure assessment (commodity-import tariff vulnerability)
  - DPA Title III eligibility (federal-investment qualification)
  - IRA critical-minerals tax-credit eligibility
  - EO 14017 supply-chain action exposure
  - Energy Act of 2020 research/innovation eligibility

Stage 3 — Nevada Corporation Formation
  - Nevada corporation organized
  - Mineral-asset interest conveyed to BAE
  - Articles of Incorporation filed (Common Class B authorized)
  - Initial directors / officers appointed
  - Corporate bylaws adopted

Stage 4 — Empire Onboarding
  - Empire performs KYB on BAE
  - BAE corporate structure documented
  - Empire takes custody of all BAE common stock

Stage 5 — Classification Relay Configuration
  - Authorized Classification relay's Ed25519 pubkey configured
  - Federal-Register / USGS / DOE feed subscriptions verified
  - Initial Classification Oracle attestation submitted

Stage 6 — Platform Configuration
  - Basin ID assigned (asset identifier)
  - SecurityConfig PDA initialized:
      module = CORECM (3)
      classification_max_age_secs = 86_400 (default 24 hours)
      federal_action_freeze_enabled = true
      federal_action_sla_secs = 3600 (60 minutes)
      asset_identifier = basin_id

Stage 7 — Token Issuance
  - SPL Token-2022 mint created with Transfer Hook registered
  - ST22 Module 3 tokens minted to BAE treasury

Stage 8 — Investor Onboarding
  - Investors onboard via Empire
  - HoldingPeriodAccount PDAs created per Reg D / Reg S / Reg CF

Stage 9 — Secondary Trading
  - CEDEX listing active
  - REG-42 federal-action variant continuously evaluated against Classification Oracle

10.3 Backing Instrument — BAE Common Stock

Each Module 3 ST22 token is backed 1:1 by common stock of the BAE. The BAE holds direct interest in the basin / mineral asset; ST22 tokens represent fractional equity ownership in the BAE.

Investor Wallet (holds ST22 Module 3 tokens)
    ↓ (represents fractional equity in)
BAE Common Stock (held 1:1 by Empire Stock Transfer §17A custody)
    ↓ (issued by)
Basin-Asset Entity (Nevada corporation; holds basin interest)
    ↓ (owns / holds)
Mineral Basin / Concession / Processing Facility

Custody verification mechanics are identical to Module 2 (class_label = AssetClass::BAE).

10.4 Asset Identifier — Basin ID

Module 3 mints carry the basin ID as the asset identifier:

basin_id = keccak256(
    state_code            // ISO 3166-2 state code
  | county_or_district    // FIPS or BLM district code
  | mineral_class         // USGS taxonomy code (e.g., "REE", "LI", "CU", "NI")
  | concession_id         // BLM lease number / private concession ID / Section-Township-Range
  | bae_corporate_id      // Nevada Secretary of State entity ID
)

Where applicable, basin IDs reference:

USGS Mineral Resource Data System (MRDS) entries
BLM mineral lease numbers (for federal-land concessions)
DOE National Coal Resource Data System entries (for coal-derived REE recovery facilities)

10.5 The Classification Oracle (Module 3)

The Classification Oracle is Module 3's central architectural innovation. It surfaces federal-framework status — both static classification and dynamic federal-action events — on-chain via Ed25519-signed relay attestations.

10.5.1 Classification Oracle PDA Schema

#[account]
pub struct ClassificationOracle {
    pub version:                       u8,
    pub mint:                          Pubkey,
    pub basin_id:                      [u8; 32],
    pub classification_status:         u32,      // bitfield
    pub federal_action_active:         bool,
    pub federal_action_started_slot:   u64,      // Drives 60-min SLA timer
    pub federal_action_kind:           u8,
    pub federal_action_reference:      [u8; 32], // Federal Register doc ID, USGS publication ID, etc.
    pub last_update_slot:              u64,
    pub relay_pubkey:                  Pubkey,
    pub signature:                     [u8; 64],
    pub bump:                          u8,
}

// classification_status bitfield (u32, 32 flags)
const STATUS_USGS_CRITICAL:        u32 = 1 << 0;
const STATUS_DOE_CRITICAL:         u32 = 1 << 1;
const STATUS_IRA_30D_ELIGIBLE:     u32 = 1 << 2;
const STATUS_EO14017_LISTED:       u32 = 1 << 3;
const STATUS_DPA_III_PROGRAM:      u32 = 1 << 4;
const STATUS_SEC232_TARIFF_TARGET: u32 = 1 << 5;
const STATUS_ENERGY_ACT_2020:      u32 = 1 << 6;
const STATUS_DEFENSE_LOGISTICS:    u32 = 1 << 7;
// reserved bits 8-31

// federal_action_kind enum
const KIND_NONE:                u8 = 0;
const KIND_SECTION_232:         u8 = 1;
const KIND_DPA_III:             u8 = 2;
const KIND_EXECUTIVE_ORDER:     u8 = 3;
const KIND_USGS_LIST_CHANGE:    u8 = 4;
const KIND_DOE_EVENT:           u8 = 5;
const KIND_TARIFF_OTHER:        u8 = 6;
const KIND_EXPORT_RESTRICTION:  u8 = 7;
const KIND_LAND_USE_ACTION:     u8 = 8;  // BLM withdrawal, EPA restriction

10.5.2 Authorized Classification Relay

The Classification Oracle is fed exclusively by an authorized Classification relay — an off-chain service whose Ed25519 public key is bound to the Classification Oracle PDA at initialization. The relay performs:

Continuous polling of authoritative federal sources (Federal Register, USGS publications, DOE notices, BLM notices)
Event detection and classification per the documented framework taxonomy
Ed25519 signing of attestations on detection of qualifying events
60-minute SLA from detection of qualifying event to on-chain attestation submission
Reverse-trigger detection: when an action lifts, attestation update with federal_action_active = false

Relay infrastructure:

Component

Detail

Subscription targets

Federal Register API, USGS data feeds, DOE Critical Materials Strategy publications, BLM Notice publications, Office of the President proclamations

Polling frequency

Federal Register: every 15 minutes; USGS: hourly; DOE: hourly; BLM: hourly

Redundancy

Three independent subscribers across separate cloud providers

Detection logic

Pattern matching against per-basin keyword sets configured at BAE onboarding

Compliance review

Platform compliance officer reviews automated detections before signing for high-impact actions (Section 232, DPA III)

Signing

Ed25519 over (mint, basin_id, federal_action_active, federal_action_kind, federal_action_reference, slot)

On-chain submission

Solana transaction submitted within 60-minute SLA budget

10.5.3 Classification Oracle Update Flow

Step 1 — Federal Event Detection
  Classification relay polls federal sources continuously
  Detects qualifying event (e.g., Section 232 tariff notice
    affecting copper imports → impacts copper basin holdings)

Step 2 — Compliance Review (high-impact actions)
  For Section 232, DPA III, EO actions:
    Platform compliance officer reviews detection
    Confirms basin-level applicability
    Authorizes attestation update
  For automated low-impact (USGS list change, DOE event):
    Skip review; relay proceeds directly

Step 3 — Off-Chain Computation
  classification_relay computes:
    federal_action_active = true
    federal_action_kind = KIND_SECTION_232
    federal_action_reference = Federal Register doc ID hash

Step 4 — Ed25519 Signing
  relay signs:
    msg = (mint || basin_id || federal_action_active || federal_action_kind
           || federal_action_reference || target_slot)
    signature = Ed25519_sign(relay_priv, msg)

Step 5 — On-Chain Submission
  Update transaction submitted to Solana within 60-min SLA budget

Step 6 — On-Chain Verification
  ClassificationOracle program verifies signature via native Ed25519 precompile

Step 7 — On-Chain Effect
  Subsequent Module 3 transfers on this mint will trigger REG-42 federal-action
  variant rejection until federal_action_active returns to false

Step 8 — Audit
  GA-42 emits audit record for the classification update

10.6 Control REG-42 Federal-Action Variant — Technical Specification

10.6.1 Trigger and Effect

Trigger: any Module 3 transfer when ClassificationOracle.federal_action_active = true.

Effect:

Rejection — transfer reverts with Error 6042-FED (FederalActionActive).
Halt-only semantics — REG-42 cannot move tokens; it can only prevent transfers.
Auto-resume — when the Classification relay submits an updated attestation with federal_action_active = false, the next subsequent transfer succeeds (no manual unfreeze action required).

10.6.2 Implementation

pub fn ext_reg42_federal_action(
    ctx: &Context<TransferHook>,
) -> Result<()> {
    let cfg = &ctx.accounts.security_config;
    if cfg.module != Module::CORECM { return Ok(()); }
    if !cfg.federal_action_freeze_enabled { return Ok(()); }

    let class_oracle = ctx.accounts.classification_oracle
        .as_ref()
        .ok_or(TransferHookError::ClassificationOracleMissing)?;

    let now_ts = Clock::get()?.unix_timestamp;

    // Staleness enforcement (max age, default 24 hours)
    let oracle_ts = slot_to_unix_ts(class_oracle.last_update_slot);
    require!(
        now_ts - oracle_ts <= cfg.classification_max_age_secs,
        TransferHookError::ClassificationOracleStale  // 6042-FED-STALE
    );

    // Ed25519 signature verification
    verify_classification_attestation(
        class_oracle.relay_pubkey,
        &class_oracle.signature,
        &(
            cfg.mint,
            class_oracle.basin_id,
            class_oracle.federal_action_active,
            class_oracle.federal_action_kind,
            class_oracle.federal_action_reference,
            class_oracle.last_update_slot
        ),
    )?;

    // Federal action active → reject
    require!(
        !class_oracle.federal_action_active,
        TransferHookError::FederalActionActive  // 6042-FED
    );
    Ok(())
}

10.6.3 The 60-Minute SLA — Operational Decomposition

Detection-to-enforcement latency budget:

Phase

Target Time

Maximum

Federal event publication → relay polling cycle

0 – 15 min (Federal Register polling cadence)

15 min

Pattern detection → compliance officer notification

< 1 min

5 min

Compliance officer review and authorization (high-impact actions)

< 15 min

30 min

Ed25519 signing and Solana transaction submission

< 1 min

5 min

Solana confirmation

< 1 min

5 min

Total (high-impact)

< 30 min target

60 min ceiling

Total (automated low-impact)

< 15 min target

30 min ceiling

The 60-minute ceiling is encoded as a contractual SLA backed by:

24/7 on-call rotation for compliance officers
Triple-redundant relay infrastructure
Solana priority-fee budget reserved for SLA-critical transactions
Incident Response Playbook §13 documenting full federal-action procedure

10.6.4 Auto-Resume Semantics

When a federal action lifts (e.g., a Section 232 tariff is rescinded), the Classification relay submits an attestation update with federal_action_active = false. The next Module 3 transfer to the affected mint will succeed, subject to all other 42 controls passing. No manual unfreeze action by the platform, the BAE issuer, or Empire is required. This is structurally distinct from Control 42 (manual regulatory freeze) which requires Legal Counsel signoff and 3-of-5 multi-sig to lift.

10.7 Federal Frameworks Surfaced

10.7.1 USGS Critical Minerals List

The USGS Critical Minerals List (most recently updated per the 2022 USGS publication, with annual reassessment) defines the official list of minerals classified as critical to US economic and national security. The Classification Oracle bitfield's STATUS_USGS_CRITICAL flag is set when the BAE's basin commodity is on the current list.

KIND_USGS_LIST_CHANGE federal-action events are triggered when a USGS list update affects the basin commodity (addition or removal).

10.7.2 DOE Critical Materials Strategy

The DOE Critical Materials Strategy framework includes specific programs around coal-derived REE recovery and other strategic-mineral supply-chain initiatives. The STATUS_DOE_CRITICAL flag is set when the BAE participates in a current DOE program. KIND_DOE_EVENT federal-action events are triggered by DOE program suspension, modification, or expansion.

10.7.3 Section 232 of the Trade Expansion Act of 1962

Section 232 authorizes the President to impose tariffs and import restrictions on national-security grounds. The STATUS_SEC232_TARIFF_TARGET flag is set when the BAE commodity is subject to current §232 tariff investigation or active tariff. KIND_SECTION_232 federal-action events are triggered by:

§232 investigation initiation
§232 tariff imposition
§232 tariff modification
§232 quota adjustment

10.7.4 Defense Production Act Title III

DPA Title III authorizes federal investment in domestic critical-minerals production. STATUS_DPA_III_PROGRAM flag is set when the BAE is a current DPA Title III program participant. KIND_DPA_III federal-action events triggered by program suspension, modification, or expansion.

10.7.5 Inflation Reduction Act — Critical Minerals Provisions

The IRA includes critical-minerals tax credits (e.g., 30D vehicle credit's domestic-content thresholds) and supply-chain incentives. STATUS_IRA_30D_ELIGIBLE flag indicates current eligibility for relevant credits. Material IRS guidance affecting eligibility triggers a classification update.

10.7.6 Executive Order 14017 — America's Supply Chains

EO 14017 directs federal agencies to assess and strengthen supply chains in critical sectors. STATUS_EO14017_LISTED flag is set when the BAE commodity is named in current EO 14017 implementation actions. KIND_EXECUTIVE_ORDER federal-action events triggered by EO 14017-driven supply-chain actions.

10.7.7 Energy Act of 2020

The Energy Act of 2020 establishes federal critical-minerals research and innovation programs. STATUS_ENERGY_ACT_2020 flag is set when the BAE is involved in current Energy Act of 2020 programs.

10.7.8 Defense Logistics / National Stockpile Programs

Where applicable, BAE participation in National Defense Stockpile programs is flagged via STATUS_DEFENSE_LOGISTICS.

10.8 Reference Use Case — Coal-Derived REE Recovery Facility

A coal-derived Rare Earth Element recovery facility located in West Virginia, eligible under DOE Critical Materials Strategy.

10.8.1 Structuring

Parameter

Value

Asset

Coal-derived REE recovery facility, Mingo County, WV

Underlying basin

Coal mining concession + REE extraction infrastructure

BAE

Mingo CORECM Holdings, Inc. (Nevada corporation)

Authorized common stock

5,000,000 shares

Tokenized share count

5,000,000 ST22 Module 3 tokens

classification_max_age_secs

86,400 (24 hours)

federal_action_freeze_enabled

true

federal_action_sla_secs

3,600 (60 minutes)

Initial classification_status

STATUS_DOE_CRITICAL | STATUS_USGS_CRITICAL | STATUS_ENERGY_ACT_2020

10.8.2 Onboarding Sequence (Concrete)

Facility identified; DOE Critical Materials Strategy program eligibility confirmed.
Federal-framework mapping: DOE-eligible (yes), USGS-critical commodity (REE = yes), §232 exposure (low for domestic REE), DPA III (potentially eligible), IRA (downstream-product 30D considerations), EO 14017 (REE-listed), Energy Act of 2020 (yes).
Nevada BAE formed; basin and facility interests conveyed.
Articles of Incorporation: 5,000,000 authorized common shares.
Empire Stock Transfer onboards BAE.
Empire takes custody of 5,000,000 BAE common shares.
Basin ID assigned: basin_id = keccak256("US-WV" | "FIPS-059" | "REE" | concession_id | bae_id).
Authorized Classification relay configured with Federal Register / USGS / DOE / BLM polling subscriptions.
Initial Classification Oracle attestation: classification_status = STATUS_DOE_CRITICAL | STATUS_USGS_CRITICAL | STATUS_ENERGY_ACT_2020, federal_action_active = false.
SecurityConfig PDA initialized.
SPL Token-2022 mint created; ST22 Module 3 tokens minted to BAE treasury.
Investors onboard through Empire (Reg D, Reg S, Reg CF).
CEDEX listing active.

10.8.3 Operational Federal-Action Cycle (Concrete)

Day 0    — Initial classification: DOE-critical + USGS-critical + Energy Act
           federal_action_active = false → trading active

Day 45   — Federal Register publishes §232 investigation initiation on
           rare-earth imports (hypothetical scenario)

Day 45 + 0  min  — Relay detects publication during 15-min polling cycle
Day 45 + 12 min  — Relay detection confirmed; basin-applicability assessed:
                  this BAE is domestic, but downstream §232 tariff could
                  affect domestic REE pricing → classified as KIND_SECTION_232
                  with federal_action_active = true
Day 45 + 25 min  — Compliance officer review complete; relay signs attestation
Day 45 + 27 min  — Solana transaction submitted; confirmed at slot N
Day 45 + 28 min  — REG-42 federal-action variant active; subsequent Module 3
                  transfers on this mint REVERT with 6042-FED

[60-minute SLA met: 28 minutes from detection to enforcement]

Day 60   — §232 investigation concludes with no tariff (hypothetical)
Day 60 + 5 min   — Relay detects investigation closure
Day 60 + 30 min  — Compliance review confirms; relay signs
                  federal_action_active = false attestation
Day 60 + 32 min  — Attestation on-chain
Day 60 + 33 min  — Next Module 3 transfer succeeds; trading resumes automatically

10.9 Module 3 Investor Lifecycle

Identical to Module 1 with two differences:

REG-42 federal-action enforcement — every secondary trade evaluates federal-action status.
Classification Oracle staleness awareness — investors observe last_update_slot and may anticipate trading freezes if the relay falls behind the 24-hour staleness window.

Investor experience during a federal-action freeze:

All transfer attempts revert with 6042-FED.
cedex.market UI displays "Federal Action Active — Trading Halted" status with the federal_action_kind reference.
No partial-fill behavior; trades are atomic.
Trading resumes automatically when relay submits federal_action_active = false.

10.10 Strategic Positioning

10.10.1 Federal Policy Tailwind

Module 3 aligns with US federal-policy direction across multiple frameworks:

Securing US strategic-minerals supply chain — EO 14017, IRA, Energy Act of 2020 all direct federal effort toward domestic critical-minerals capacity
Reducing China dependency — §232 tariff history on REE and DPA Title III investments target supply-chain diversification
Energy transition critical minerals — IRA 30D vehicle credit, lithium / nickel / cobalt for battery manufacturing
Defense supply chain — National Defense Stockpile, DPA Title III alignment

Module 3 provides the only known on-chain infrastructure capable of trading equity in these strategic assets while:

Surfacing federal-framework status on-chain in real time
Automatically halting trading on qualifying federal events
Maintaining §17A custody compliance for the underlying equity
Integrating with Empire-vetted institutional investors

10.10.2 Uncontested Capability

No competing tokenization platform offers REG-42 federal-action equivalent capability:

ERC-3643 has no native federal-action coordination primitive
Securitize and Tokeny do not address strategic-minerals supply chain
Real-estate tokenization platforms (RealT, Lofty) have no federal-action framework
Treasury / fund tokenization (BUIDL, Ondo) does not address commodity-supply-chain assets

Module 3 represents true blue-ocean architectural positioning.

10.11 Cross-Module Coordination

Module 3 shares with Modules 1 and 2:

Empire Stock Transfer §17A custody (with class_label = BAE)
Global Unified Liquidity Pool
CEDEX trading venue
Custody / OFAC / AML / TWAP oracles (with M3-specific Classification oracle as oracle category 7)
Reg D / Reg S / Reg CF framework
USDC / PYUSD GENIUS Act stablecoin settlement
Layer 9 IDOS compliance intelligence (with Module 3-specific federal-action history pipeline)

Module 3 differs from Modules 1 and 2 by adding:

Classification Oracle (Layer 6 oracle category 7)
REG-42 federal-action variant (Transfer Hook module-aware extension)
60-minute SLA for federal-action detection and enforcement
Federal frameworks integration (USGS, DOE, §232, DPA III, IRA, EO 14017, Energy Act of 2020)
BAE corporate vehicle (vs operating-company Common Class B for M1; SAE for M2)
Basin ID as asset identifier (vs CUSIP for M1; property ID for M2)
Auto-resume semantics for federal-action lift (vs manual-only resume for Control 42 manual freeze)

RWA Tokens Whitepaper V10 — Section 10 — Confidential — Groovy Company, Inc.

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