> For the complete documentation index, see [llms.txt](https://docs.wagon.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wagon.network/products/wagon-asset-tokenization/pool-lifecycle.md).
# 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
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