# Pool Lifecycle Wagon Network follows a clear and structured process to manage tokenized assets. Each pool moves through three main phases — from tokenization to monthly yield distribution, and finally to maturity — ensuring full transparency, traceability, and security via smart contracts.

The full lifecycle of a tokenization pool — from deposit to asset rental and investor exit.

## 🟢 **Open Phase - Tokenization & Participation** In this stage, assets are acquired and tokenized, and investors can participate: * 🏢 **SPV Formation** – A Special Purpose Vehicle (SPV) is established to legally own the asset * 🚛 **Asset Acquisition** – The asset (e.g. truck or equipment) is purchased and insured * 🪙 **Token Issuance** – Tokens are minted 1:1 to represent investor participation rights * 👤 **Investor Participation** – Investors deposit stablecoin and receive asset-benefit tokens in return *** ## 🟠 **Active Phase** – Income Generation During this stage, the asset is in operation and generates monthly yield: * 🔧 **Asset in Use** – The asset is rented to a verified logistics operator under contract * 📊 **Data Tracking** – Asset performance and rental payments are monitored * 💸 **Rental Payments** – Monthly rent fees are collected by the SPV * 💰 **Yield Distribution** – Smart contracts distribute rental income to token holders in stablecoin * 💵 **Principal Provision** – A portion of each rental cycle is set aside as a reserve for principal repayment at maturity *** ## 🔴 **Matured Phase** – Redemption & Exit At the end of the lifecycle, the pool reaches maturity: * ⏳ **Pool Ends** – The Pool time concludes * 🔥 **Token Burn** – Asset-benefit tokens are redeemed and burned * 💵 **Principal Returned** – Investors receive back their full principal from the principal provision * 🏷️ **Optional Asset Sale** – If the asset is sold, net proceeds (after costs and taxes) are distributed to investors --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.wagon.network/products/wagon-asset-tokenization/pool-lifecycle.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.