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On-Chain Fund Operations

Definition

On-chain fund operations involve managing investment funds directly on a blockchain, with transactions recorded on the distributed ledger. This refers to the administration and execution of investment fund activities, including capital deployment, asset rebalancing, and dividend distribution, directly utilizing smart contracts and decentralized protocols on a blockchain. These operations offer enhanced transparency, immutability, and programmability compared to traditional fund management, with all transactions publicly verifiable on the distributed ledger. It enables new models for fractional ownership and automated portfolio management.