Worked Examples

Gally is not a single financial product; it is a generalized capitalization engine. These six scenarios show how the same core mechanics — the Smart Trust, tranches, lazy-index yield, wrapping, and slashing — adapt to fundamentally different asset classes. Each follows Situation → Gally flow → Result. You can find live projects resembling these in the Marketplace.

1. Commercial real estate — escrow & rental yield

Situation. A developer aims to construct a multi-family residential building but wants to bypass high-friction bank financing.

Gally flow. The developer drafts a legally binding Smart Trust outlining the asset, local compliance, and investor rights. A validator vouches for it, locking USDC coverage to attest to its legal enforceability, and the project opens for funding. Investors contribute USDC into an all-or-nothing escrow and, once funded, receive GallyShare deeds. Capital releases sequentially — land, foundation, framing — each tranche gated by a validator-approved proof.

Result. When tenants move in, rent is deposited as revenue; the O(1) index engine distributes the investors' split, and holders claim proportional monthly yield from a passive, real-estate-backed income stream that retail could never access alone.

2. Heavy machinery — productive revenue share

Situation. A manufacturer needs a specialized CNC machine to fulfill a major contract but wants to avoid predatory equipment leasing.

Gally flow. They tokenize the specific machine purchase. Its Smart Trust specifies a revenue-share model rather than rent: the manufacturer pays a usage fee or a percentage of profits generated by the machine, with usage metrics attested on Walrus.

Result. Deed holders earn a direct cut of the machine's productivity. The on-chain mechanics are identical to real estate — gross revenue in, three-way split, index updated — only the economic driver (industrial output) differs.

3. Trade finance — self-liquidating term loans

Situation. A retail business lands a large purchase order for imported electronics but lacks the upfront cash to acquire the initial inventory.

Gally flow. The business tokenizes the purchase order as a term-financing project; its Smart Trust defines a strict return target (e.g., principal + 12% margin). Investors fund the inventory and hold short-term deeds. As the goods sell, sales revenue is deposited and distributed.

Result. Programmable trade finance. Once cumulative distributions reach the return target, anyone can close the project — investors are made whole plus their margin, and deeds are redeemed. A self-liquidating, fixed-horizon deal. See closing in the lifecycle.

4. Business bootstrapping — programmable cash-flow rights

Situation. Founders are building a community co-working space and coffee shop, needing capital for renovation and early operating expenses.

Gally flow. They launch a project where deeds represent a long-term, legally enforceable claim on the business's net revenue, as defined by their Smart Trust. Capital unlocks sequentially — leasing, renovation, launch — through the tranche engine.

Result. As the business turns a profit, revenue is swept into the pool and distributed to holders as ongoing payouts. It functions as a decentralized, programmatic cash-flow right — no legacy cap tables, transfer agents, or brokerages needed to manage distributions. (Because real-world equity triggers securities law, Gally frames this precisely as a cash-flow right defined by the Smart Trust, not as "shares.")

5. DeFi collateralization — composing your deed

Situation. You hold a deed in a profitable RWA project but face a sudden cash emergency, and you don't want to sell your position.

Gally flow. Because a GallyShare deed can be wrapped into a standard, fungible Coin<T>, it's instantly composable across the Sui DeFi ecosystem. You wrap your deed and deposit the coin into a lending protocol as collateral to borrow stablecoins.

Result. You keep your exposure while unlocking liquidity. The trade-off is explicit and mathematically enforced: while wrapped, the coin earns zero Gally yield. When the emergency passes, you repay and unwrap back into a yield-earning deed — with zero retroactive yield owed for the wrapped period.

6. The operator default — accountability & slashing

Situation. A builder secures funding but mismanages the capital and misses a critical milestone deadline encoded in the project.

Gally flow. The dual-layer model activates. On-chain, the deadline passes with no approved proof, so anyone can permissionlessly trigger the default crank — no coordination needed. The protocol seizes the builder's collateral and the undeployed escrow; if the validator's attestation is successfully disputed by the jury, the validator's coverage is seized too. Off-chain, the entity remains legally liable for breach of the Smart Trust.

Result. Wrapping freezes and a grace window opens so every holder — even those deployed in DeFi — can unwrap. The compensation pool is swept through the index and distributed pro-rata. Investors are made whole from up to three layers: undeployed escrow → slashed validator coverage → entity collateral. The project is then closed.

Note. This is the absolute worst case — and it is exactly the situation Gally was designed to make survivable, protecting investor capital even when humans fail. Walk through the mechanics in Trust & Security.