Machine Token (Shares)

The Machine Token (also called the share) is the ERC-20 token that represents a holder's proportional claim on a strategy. Holding shares is equivalent to holding a slice of everything the strategy controls. As the strategy's AUM grows, the value of each share grows with it.

The machine token is a standard, fully composable ERC-20. It always uses 18 decimals, regardless of the strategy's accounting token, which keeps share math precise even for low-decimal accounting tokens like USDC. See MachineShare.sol.

How shares are acquired

• By depositing the accounting token through the strategy's Depositor. The Machine mints shares at the current share price: shares = assets / share price.
• On secondary markets, since the token is a normal ERC-20 and can be listed and traded like any other asset.

Shares are burned when a holder redeems them back into the accounting token.

Composability

Because the machine token is a plain ERC-20 whose value tracks a professionally managed, diversified strategy, it is useful well beyond simply holding:

• as collateral in lending markets;
• as one side of a liquidity pool on a DEX;
• held in treasury to earn the strategy's risk-adjusted return passively.

Cross-chain transfer

The machine token is a standard ERC-20, so moving it to another chain relies on external bridging infrastructure such as Wormhole NTT rather than anything built into the token itself.