# Presentation: EPR and Digital Regulatory Sandbox on the DLE Operating System (VC HB3 Accelerator) **Language:** [Русский](../../ru/presentations/fns-epr-dle-hb3-deck.md) | [English](fns-epr-dle-hb3-deck.md) ## Slide 1. Client: FNS. Goal: launch EPR **To:** Federal Tax Service of Russia / competent authority **From:** OOO ERAYTI **Topic:** Deployment of a *digital regulatory sandbox* and Experimental Legal Regime (EPR) based on the first pilot company project of VC HB3 Accelerator, which uses the **Digital Legal Entity (DLE)** operating system to organize commercial activity with digital-sandbox participants **Goal:** create a controlled environment where the FNS gets monitoring, and sandbox participants work through scenarios under clear rules. --- ## Slide 2. Problem statement (why this matters for the FNS) - New technologies require oversight of operations tied to legally significant identifiers (organizations, addresses, activity codes, etc.) - Business finds it hard to test innovations without risk of violations: *legal and technological predictability* is needed - The regulator needs a venue: not “in a vacuum,” but with real participants and observable processes --- ## Slide 3. What EPR is (in the project’s logic) **EPR = experimental regime**, where: - consequences for core activity are predictable - risks are limited by control within set rules - technologies are tested on live cases under supervision In our approach, EPR is implemented through a *digital regulatory sandbox* on the DLE infrastructure of the first pilot company project of VC HB3 Accelerator. --- ## Slide 4. What we deploy under EPR **The Digital Legal Entity digital sandbox within the experimental legal regime is organized as an industrial contour of local deployment and oversight:** - the contributor deploys the Digital Legal Entity OS in the jurisdiction contour; in the Russian Federation the contributor is Limited Liability Company “ERAYTI” (authorized license seller in the Russian Federation) - VC HB3 Accelerator uses the Digital Legal Entity OS to organize commercial activity with sandbox participants and run the accelerator program - sandbox participants deploy their own Digital Legal Entity OS instances and deploy their own smart contracts with governance tokens; smart-contract addresses are submitted to VC HB3 Accelerator to configure access rights to service and resources of VC HB3 Accelerator on the Digital Legal Entity OS - integration of identifiers and tagging rules is performed based on lists provided by the regulator and fixed in the pilot regulation - the supervisory authority monitors operations via a blockchain scanner in the sandbox contour --- ## Slide 5. Participants and roles (ecosystem model) 1. **Federal Tax Service (supervisory authority)** - approves and provides identifier lists and tagging rules for the pilot (within the experimental legal regime) - receives monitoring of operations in the sandbox contour via a blockchain scanner 2. **VC HB3 Accelerator (first pilot company project)** - uses the Digital Legal Entity OS to organize commercial activity with sandbox participants - runs the accelerator program for participants and defines interaction rules in the pilot - receives from participants addresses of smart contracts with governance tokens to configure access rights to service and resources of VC HB3 Accelerator on the Digital Legal Entity OS 3. **Contributor (local operator in the jurisdiction)** - deploys the Digital Legal Entity OS in the jurisdiction contour and onboards participants - acts as an authorized license seller in the relevant territory under a contractual model with the rights holder - in the Russian Federation the contributor is Limited Liability Company “ERAYTI” 4. **Sandbox participants (customer companies and contractor companies)** - deploy their own Digital Legal Entity OS instances and deploy their own smart contracts with governance tokens - participate in commercial pilot scenarios in accordance with the sandbox regulation --- ## Slide 6. How DLE links the “smart contract” and identification - The Digital Legal Entity OS supports smart contracts with identifiers set by the regulator - For a specific pilot, identifier lists and tagging rules provided by the regulator are fixed in the sandbox regulation and implemented in configuration and smart contracts - Governance tokens are used as a governance and access-control mechanism (token-gating) within participants’ OS instances - Resident status is recorded in DLE at the level of organization identification and the smart contract - **Immutability** of records and traceability of operations create a supervisory contour for the FNS --- ## Slide 7. Technology architecture (components) Deployed on servers inside the jurisdiction: - **Blockchain registry (EVM-compatible)** — recording of operations and smart contracts - **Smart contracts with identifier support** - **Blockchain scanner** — monitoring tool (by transactions/addresses/identifiers) - **User wallet** --- ## Slide 8. What the FNS gets from the pilot 1. **Participant identification** via a smart contract bound to national identifiers 2. **Monitoring tools**: blockchain scanner with real-time access to the operations registry 3. **Working sandbox**: first pilot company project of VC HB3 Accelerator using the OS to organize commercial activity with sandbox participants 4. **Cross-jurisdiction compatibility** (reuse of architecture / connection to similar registries) 5. **Independence from external vendors**: on-prem, open code, independent audit possible 6. **Measurable supervisory effect** (within agreed KPIs): lower share of manual reconciliations, higher data quality, shorter time to analyze cases --- ## Slide 9. Security and data-compliance requirements - **Data localization**: on-premises deployment - **Encryption**: TLS 1.3 (channel), AES-256 (storage) - **Audit**: open source code and review by the supervisory authority --- ## Slide 10. Implementation order Stage 1. Preparation - agree the experimental legal regime and pilot regulation - define identifier lists and tagging rules provided by the regulator - form the pilot participant set and commercial-activity scenarios Stage 2. Integration - the contributor (in the Russian Federation — Limited Liability Company “ERAYTI”) deploys the Digital Legal Entity OS in the jurisdiction contour - integrate identifier lists and tagging rules into the sandbox contour per the pilot regulation - deploy the blockchain registry and blockchain scanner for supervisory monitoring of operations Stage 3. Acceleration - participants install the Digital Legal Entity OS and deploy their own contours (on-premises) - participants deploy their own smart contracts with governance tokens and submit addresses to VC HB3 Accelerator to configure access rights to service and resources - the supervisory authority gets access to the blockchain scanner under pilot rules Stage 4. Operation - support / expand participants / connect new case groups --- ## Slide 11. What we ask of the FNS (precise request) 1. **Agreement of the experimental legal regime and pilot regulation** (scenarios, participant set, limitations, and oversight procedure) 2. **Provision of identifier lists and tagging rules** needed for integration into the Digital Legal Entity sandbox contour 3. **Connect FNS representatives to monitoring** (blockchain scanner and access to the operations registry under pilot rules) 4. **Joint agreement of pilot KPIs** (metrics fixed at the start): - share of processes where identification/control are performed automatically via smart contract - reduction of manual reconciliations and “data gaps” - speed of obtaining analytical slices of resident operations - data quality (completeness/correctness of identifiers and bindings) --- ## Slide 12. Why business becomes a resident (participant benefits) A resident gets: - digital regulatory sandbox participant status recorded in DLE based on a license token - ability to install the Digital Legal Entity OS from the repository and deploy their own contour (on-premises) - deployment of smart contracts with governance tokens to manage teams and access within the OS - access to the VC HB3 Accelerator program and to OS service and resources under pilot rules (based on participants’ smart-contract addresses) - a **controlled testing regime** within agreed pilot rules - a path to **investment offers** upon reaching planned metrics - for supervisory representatives: **monitoring and analytics** of operations via blockchain scanner within the pilot --- ## Slide 13. Participation format: “cohorts by activity type” - Cohorts by activity type: launch scenarios in selected directions (70+ groups) - first pilot company project of VC HB3 Accelerator — which uses the OS to organize commercial activity with sandbox participants - Sandbox participants: organizations — supervisory representatives, companies — contractors, and companies — customers --- ## Slide 14. Next step: agree a PoC We propose an initial working session to: - define the pilot subject and KPIs for the FNS - agree identifier lists for integration - choose the on-premises deployment territory and contributor (local operator) for the pilot Then — launch Stage 1 (preparation) and the implementation plan. --- ## Slide 15. Transition to the industrial contour after receiving regulator tagging After receiving smart-contract tagging from the regulator: - contributors create an industrial smart contract with governance tokens and regulator tagging (for the relevant jurisdiction) - holders of contributor demonstration tokens vote to select the jurisdiction for the first pilot company project of VC HB3 Accelerator - in the selected jurisdiction, a smart contract with local regulator tagging is deployed and the industrial contour is launched --- ## Slide 16. Rights and economics model of a network of local operating systems - the author-developer transfers rights to the fund (VC HB3 Accelerator) under a contractual model - license tokens are distributed through regional contributor operating systems and sold for local regulator stablecoins of the relevant jurisdiction - contributors transfer governance tokens of their OS smart contracts with profit into the VC HB3 Accelerator treasury - result: a fund managing a network of local operating systems under individual regulators (jurisdictions), with common principles of oversight and scaling --- ## Slide 17. Legal status of the DLE OS and rights in the RF - The source code of the `Digital Legal Entity (DLE)` operating system is protected by copyright. - Use of the OS within the pilot is under a licensing model and the author’s terms. - `OOO “ERAYTI”` received from the author official written authorization to configure and sell the OS in the Russian Federation. - For the FNS this means: infrastructure is built on a legal basis, and all residents receive access under agreed terms. --- ## Slide 18. Note Materials are provided for informational purposes and are not legal advice or an offer to deal. Legally significant actions require agreements and legal analysis within the pilot.