How it works
An onchain protocol where holding $SWA earns you a fractional position in every dividend stock the treasury acquires.
Stock World Assets is an onchain protocol that turns a token balance into diversified exposure to dividend-paying equities. There is no subscription, no minimum, and no application. You hold $SWA, and the protocol airdrops you a fractional position in every stock the treasury has acquired.
The design borrows its shape from Fake World Assets, which pairs NFTs with committed backing and allocates them at random. Stock World Assets replaces the NFT with something that produces cash flow. A position in the pool is not just a collectible with a floor price — it pays dividends for as long as you hold it. That single change is what makes the redeem-or-hold decision interesting.
The loop
- Acquire $SWA. The token launched through the flap.sh launchpad and trades on the open market.
- Every trade is taxed. A flat 3% on buys and 3% on sells is routed to the protocol treasury. See Tax.
- The treasury buys stocks. Accumulated tax is deployed into dividend-paying equities, which are added to the pool and tiered by capitalisation and payout profile. See The pool.
- Holders are airdropped positions. Every eligible holder receives a fractional slice of every stock in the pool — not one stock at random, but a proportional cut of all of them. See Airdrops.
- Then you choose. Redeem the position back into $SWA supply, or keep it and collect the dividends it pays. See Redeem vs hold.
- Dividends recirculate. Income from pool holdings is collected and redistributed, and every movement is visible in the Explorer.
The three roles
Every participant occupies one of three positions relative to the protocol, and each earns in a different way.
Holders
Holders own $SWA and do nothing else. They are the passive side of the system: they receive airdropped positions across the entire pool without selecting anything, and their share of each distribution scales with their balance. A holder's return comes from two sources — the market value of the positions they receive, and the dividends those positions pay once kept.
Redeemers
A redeemer is a holder who has decided that a given position is worth more to them as $SWA supply than as an equity stake. Redemption converts the position back into token supply at the position's prevailing backing, minus the protocol's cut. Redeemers provide the exit liquidity that makes airdropped positions immediately monetisable rather than illiquid.
The protocol
The protocol earns from the spread between three things: the tax collected on trading volume, the price at which stocks enter the pool, and the rate at which positions are redeemed rather than held. That revenue is bounded — it is a fixed percentage of activity, not a discretionary fee — and it funds the acquisitions that grow the pool.
What makes it an ETF
Conventional index exposure requires either buying an ETF share or replicating the index yourself. Stock World Assets produces the same shape of exposure as a side effect of its distribution mechanic: because each airdrop includes a slice of everypool holding rather than a single randomly selected one, a holder's accumulated positions converge on the pool's composition. Hold long enough and you own the index by construction. This is covered in detail in Synthetic ETF.
What is not final yet
Two parameters are still being set and are deliberately not published as numbers anywhere on this site:
- The tax allocation split. The 3%/3% rate is fixed. How that 3% divides across stock acquisition, airdrop funding, and operations is not.
- Hold-time multipliers. Holding longer will earn more airdrops and more stocks. The thresholds, the curve, and the snapshot cadence are not set.
Where a specific figure would normally appear for either of these, the interface shows a “to be published” state instead of a placeholder number. That is intentional — publishing an invented split for where holder money goes would be worse than publishing nothing.
Where to go next
If you are evaluating whether to participate, read Risks first, then Tax and Redeem vs hold. If you already hold and want to understand what is arriving in your wallet, start with Airdrops and Dividends.