# TS-GMRI Methodology v1.1.1 — Addendum (Wrapper Extension + Tolling Clarification + ETF/ROY Slots)

**Author:** Andrey Kuznetsov, Hong Kong
**Publisher:** TrueSource Metals (Hong Kong)
**Status:** Locked addendum to TS-GMRI Methodology v1.0
**First published:** 17 June 2026 (v1.1)
**Current revision:** v1.1.1 — 17 June 2026 (same-day refinement)
**License:** CC BY-ND 4.0 non-commercial; commercial use requires written agreement
**Parent document:** [TS-GMRI Methodology v1.0](https://www.truesourcemetals.com/gmri/methodology-v1.0.md) (SHA-256 dc8a47bf7f5326415c9295750b956453092e63ff278d76ad616d3934c03804ce)

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## Revision log

| Version | Date | Change | SHA-256 |
|---|---|---|---|
| v1.1 (PROD) | 16 June 2026 22:36 UTC | Initial registration as TS-GMRI-PROD | `ac040556f1685f263f70f70b395d3d519168988d0986828bfafff6d1170db420` |
| v1.1 (MEQ) | 17 June 2026 | Renamed PROD → MEQ; broadened to 5 value-chain segments | `e092ea600dd803aad9338722e9e02fc59992e1d43f525f9a618cd00fe0f8792a` |
| v1.1.1 | 17 June 2026 | Tolling clarified (midstream); 2 new slots: TS-GMRI-ETF (etf-wrap wrapper), TS-GMRI-ROY (royalty-only sub-slot) | (this file)

All prior versions are preserved at `/gmri/historical/` together with their original OTS proofs.

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## 0. Scope of this addendum

This addendum **does not modify** v1.0. The v1.0 framework — base date, base value, weighting equations, eligibility section, re-balancing schedule, all 16 originally registered family members — remains canonical, byte-stable, and Bitcoin-stamped.

This addendum **extends** the TS-GMRI family with one new registered methodology slot and formalises the concept of a **wrapper dimension** in the universe, alongside the existing dimensions of *filter* (which metals) and *weighting* (how they combine).

### 0.1 Naming history (transparency)

The slot introduced here was initially registered on 16 June 2026 at 22:36 UTC under the working code **TS-GMRI-PROD** (Producers). Within one hour the code was renamed to **TS-GMRI-MEQ** (Metal Equity) for two reasons:

1. **Disambiguation.** "PROD" was readable as *producer*, *production output*, or *product*. The latter two meanings conflict with existing production-data language elsewhere in the TS-GMRI documentation.
2. **Scope precision.** The slot is defined by its *wrapper* (tokenized equity), not by a single value-chain role. The slot must therefore accommodate miners, refiners, smelters, recyclers, royalty/streaming firms, and integrated commodity traders — all of which are metal-economy equities. "MEQ" denotes the wrapper; "PROD" implicitly narrowed it to upstream producers.

The original PROD addendum is preserved at `/gmri/historical/methodology-v1.1-addendum-prod-superseded.md` together with its SHA-256 (`ac040556f1685f263f70f70b395d3d519168988d0986828bfafff6d1170db420`) and its OpenTimestamps proof. The PROD prior art and the MEQ prior art therefore both stand, with MEQ as the canonical name from 17 June 2026 onward.

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## 1. New concept: wrapper dimension

Up to v1.0, every TS-GMRI member shared the same wrapper type:

> **Wrapper = direct physical-metal claim.** A constituent token represents a fractional ownership interest in a specific quantity of physical metal held in a vault, refinery, or other physical custody, redeemable or backed 1:1 in audited form.

v1.1 introduces an explicit **wrapper field** on each family member. The wrapper field declares the *type of legal claim* the underlying constituent represents. Permitted values:

| Wrapper code | Meaning | Example constituents |
|---|---|---|
| `physical` | Direct claim on physical metal in vault | PAXG, XAUT, KAU, KAG, XAUM, XAGM, …  (the v1.0 universe) |
| `equity` | Tokenized share in a metal-economy company | Robinhood EU stock tokens (BHP, RIO, NEM, FCX), Dinari dShares (dFCX, dNEM, dSQM), Backed Finance xStocks, Swarm Markets |
| `etf-wrap` | Tokenized share in an existing physical-metal ETF | Backed Finance bGLD (PAX Gold via ETF), tokenized GLD/SLV/GDX (where issued) |
| `royalty` | Tokenized share in a royalty/streaming company | Future tokenization of Wheaton, Franco-Nevada, Royal Gold, Triple Flag (none live as of 17 June 2026) — reserved for prior art |
| `derivative` | Tokenized swap, perp, or forward on metal | Excluded; methodology slot reserved for prior art only |

**Wrappers are not additive.** A reader may not sum TS-GMRI (physical wrapper) with TS-GMRI-MEQ (equity wrapper) to derive a single "metals exposure" figure. The underlying economic claims are mathematically distinct (a kilogram of bullion ≠ a share of a mining company), and the risk decompositions differ materially.

All sixteen v1.0 family members are hereby tagged `wrapper = physical`. This tagging is a documentation refinement only; no value, weight, or eligibility rule changes.

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## 2. New family member: TS-GMRI-MEQ (slot, awaiting constituents)

| Field | Value |
|---|---|
| Code | `GMRI-MEQ` |
| Display name | **TS-GMRI Metal Equity** |
| Wrapper | `equity` |
| Filter rule | `wrapper = equity AND issuer_business ∈ metal_value_chain` |
| Weighting | Market-cap weighted with 25% single-issuer cap |
| Base date | 7 June 2026 (shared with rest of family) |
| Base value | 100 |
| Publication threshold | N ≥ 3 eligible constituents from ≥ 2 distinct tokenization issuers AND ≥ 2 distinct value-chain segments |
| Current N | 0 |
| Current value | Not published (below threshold) |
| Status | Methodology slot — pre-launch |

### 2.1 Eligible value-chain segments

A constituent issuer must operate primarily (≥ 50% of revenue or identifiable assets) in **one of the following five segments** of the physical-metal value chain:

| Code | Segment | Examples (conventional listings; tokenization to follow) |
|---|---|---|
| `upstream_producer` | Mining and extraction of physical metal | BHP, Rio Tinto, Newmont, Freeport-McMoRan, SQM, Albemarle, Vale, Anglo American |
| `midstream_refiner_smelter` | Refining or smelting of metal concentrates and recyclate, **including both take-title refiners** (who buy concentrate/scrap and sell refined metal on own account) **and toll refiners** (who provide processing services for a fee without taking title to the metal) | Aurubis (copper refining — mixed take-title + tolling), Boliden (zinc/copper smelting), Umicore (precious-metal refining), Asahi Holdings (refining), Heraeus (PGM tolling), Johnson Matthey (PGM tolling), Asahi Refining |
| `recycler_scrap` | Collection, processing, and re-melting of metal scrap | Sims Metal Management, Schnitzer Steel Industries, Aurubis recycling segment |
| `royalty_streamer` | Royalty and streaming rights to metal production without operating mines | Wheaton Precious Metals, Franco-Nevada, Royal Gold, Triple Flag Precious Metals |
| `physical_trader_logistics` | Physical-commodity trading and logistics where ≥ 50% of revenue derives from physical metals | Glencore (when applicable), publicly-listed integrated commodity traders |

The five-segment classification permits cross-cutting filters in future addenda (e.g. a sub-slot for streamers only) without redefining MEQ.

### 2.2 Eligibility

A constituent token is eligible for TS-GMRI-MEQ if and only if **all** of the following are satisfied:

1. The underlying equity is listed on a recognised stock exchange in the LSE, NYSE, NASDAQ, HKEX, ASX, TSX, SGX, JPX, or SIX universe.
2. The issuing company's primary business (≥ 50% of revenue or ≥ 50% of identifiable assets) falls in one of the five value-chain segments enumerated in Section 2.1, as evidenced by audited annual reports (GICS Materials sub-industries 1510101010 through 1510304030, plus 2030101010 trading conglomerates where physical-metal exposure dominates). **Title-passage neutrality:** for the midstream segment, the eligibility test is satisfied irrespective of whether the issuer takes title to the metal it processes (take-title refining) or earns a treatment-charge / refining-charge / tolling fee without title (toll refining).
3. The tokenization wrapper is regulated by a tier-1 jurisdiction regulator: US SEC/FINRA broker-dealer, EU MiFID II investment firm, CH FINMA, HK SFC Type 1/4/7, or SG MAS CMS.
4. The token issuer has published the on-chain smart contract address(es) of the constituent token, and maintains a verifiable 1:1 backing audit performed at least monthly by a qualified independent auditor.
5. The constituent token has a 30-day rolling average daily on-chain trading volume of at least USD 50,000 across its primary venues, as measured by CoinGecko or equivalent aggregator.
6. The token issuer publishes regular share-backing attestation (monthly minimum).

A constituent that ceases to satisfy any of the above is removed at the next scheduled re-balance (monthly), with no retroactive adjustment to historical index values.

### 2.3 Weighting

TS-GMRI-MEQ uses **market-cap weighted, issuer-capped at 25%**, with overflow redistributed pro-rata to uncapped issuers. The cap is set higher than the 20% used in TS-GMRI-CAP20 because the MEQ universe is expected to be smaller at launch (N = 3 to 30) and the cap-redistribution effect therefore more material. The cap is reviewed annually at the calendar-year-end re-balance.

Market cap is computed as: token's on-chain circulating supply × the issuer's published share price at 23:59 UTC on the re-balance date. Where the issuer publishes the share price in a currency other than USD, the WM/Reuters 16:00 London Fix on the same date is used for conversion.

### 2.4 Segment-dominance safeguard

To prevent a single segment from determining the index in its early stages, the publication threshold requires constituents from **at least two distinct value-chain segments**. Once N ≥ 10, this safeguard is relaxed to "no single segment may exceed 60% of total cap-weight" applied at each monthly re-balance.

### 2.5 Risk decomposition vs core TS-GMRI

A TS-GMRI-MEQ constituent's price equals (approximately):

> metal-economy equity value × tokenization wrapper basis

A TS-GMRI (core) constituent's price equals (approximately):

> reference metal price × redemption discount/premium

The TS-GMRI-MEQ price therefore carries three additional risk dimensions that TS-GMRI does not:

1. **Operational leverage.** Producer, refiner, and recycler equity moves more than the underlying metal in both directions; the multiplier varies by segment. For miners it approximates `(1 + debt/equity) × (1 − all-in-sustaining-cost / metal price)`. Royalty and streaming firms have lower operational leverage but higher counterparty exposure to the operating mines they finance.
2. **Management quality.** Capex discipline, hedge book, jurisdiction allocation, dividend policy, M&A history.
3. **Securities regulation.** The wrapper is a security in every tier-1 jurisdiction; the constituent token is subject to KYC/AML, suitability, and trading-venue restrictions that do not apply to physical-metal wrappers.

These risks are inherent to the equity asset class. The index does not attempt to hedge them; TS-GMRI-MEQ is published as a *benchmark of the wrapper's natural performance*, not a synthetic pure-metal exposure.

### 2.6 Rationale for slot registration on 17 June 2026

As of the slot registration date, no operator has published a public benchmark dedicated to tokenized metal-economy equities. The natural analogs in conventional finance — GDX (VanEck Gold Miners), COPX (Copper Miners), SIL (Silver Miners), LIT (Lithium & Battery Tech), URA / URNM (Uranium), PICK (iShares Diversified Mining), GOEX (Global Gold Explorers) — are each multi-billion-dollar products and have been live for 10–20 years. The tokenized equivalent is in early formation:

- **Robinhood EU stock tokens** (live since June 2025) include BHP, Rio Tinto, Newmont, Freeport-McMoRan, SQM, Albemarle.
- **Dinari dShares** offers dFCX, dNEM, dSQM and others to non-US investors.
- **Backed Finance xStocks** has confirmed the technical capability to add metal-equity wrappers; no dedicated launches as of 17 June 2026.
- **Swarm Markets** (BaFin-regulated) hosts tokenized equities including selected miners.

The publication threshold of N ≥ 3 from ≥ 2 distinct tokenization issuers and ≥ 2 distinct value-chain segments is expected to be met within the 2026 H2 – 2027 H1 window for the upstream-producer segment, and 2027 – 2028 for the midstream and royalty segments. The slot is registered now to establish prior art for the methodology framework, in line with the v1.0 principle of *registering rules ahead of constituents* (the same approach used for TS-GMRI-BASE, -BTR, -FE, -LT, -MN, -REF, -STL, -CRT, -FA, and -JUR at v1.0 publication).

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## 3. Family member count update

The TS-GMRI family now comprises **17 registered members**:

- 6 live: TS-GMRI, TS-GMRI-EW, TS-GMRI-CAP20, TS-GMRI-AU, TS-GMRI-PRE, TS-GMRI-NONAU.
- 11 methodology slots (pre-launch): TS-GMRI-BASE, TS-GMRI-BTR, TS-GMRI-FE, TS-GMRI-CRT, TS-GMRI-FA, TS-GMRI-LT, TS-GMRI-MN, TS-GMRI-REF, TS-GMRI-STL, **TS-GMRI-MEQ (new in v1.1)**, TS-GMRI-JUR.

All other v1.0 specifications — eligibility (Section 3 of v1.0), data discipline, re-balancing schedule, governance, license, and the v1.0 base date and value — are preserved without amendment.

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## 4. Integrity proof

This addendum is timestamped via OpenTimestamps onto the Bitcoin blockchain. The published artifacts are:

- `methodology-v1.1-addendum.md` (this file, locked source)
- `methodology-v1.1-addendum.pdf` (typeset copy of this file)
- `methodology-v1.1-addendum.sha256.txt` (SHA-256 hex digest of the .md)
- `methodology-v1.1-addendum.ots` (OpenTimestamps proof referencing the .md SHA-256)

The OpenTimestamps proof references the SHA-256 of `methodology-v1.1-addendum.md` only. Any modification of this addendum invalidates the proof and is detectable.

Two prior-art artifacts cover the same conceptual slot, both Bitcoin-stamped:

- `/gmri/historical/methodology-v1.1-addendum-prod-superseded.md` (TS-GMRI-PROD, SHA-256 ac040556…, stamped 16 June 2026 22:37 UTC)
- `/gmri/methodology-v1.1-addendum.md` (TS-GMRI-MEQ, this file, stamped 17 June 2026)

The first establishes prior art over the equity-wrapper concept; the second establishes prior art over the canonical name and the broadened value-chain scope.

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## 5. Trademark notice

TrueSource Metals™, TS-GMRI™, Global Metals RWA Index™, TS-GMRI-MEQ™, TS-GMRI-EW™, TS-GMRI-CAP20™, TS-GMRI-AU™, TS-GMRI-PRE™, TS-GMRI-NONAU™, TS-GMRI-BASE™, TS-GMRI-BTR™, TS-GMRI-FE™, TS-GMRI-CRT™, TS-GMRI-FA™, TS-GMRI-LT™, TS-GMRI-MN™, TS-GMRI-REF™, TS-GMRI-STL™, TS-GMRI-JUR™, OTSFA™ are unregistered trademarks claimed by TrueSource Metals (Hong Kong), first published 7 June 2026 (core family) and 17 June 2026 (TS-GMRI-MEQ). All other names, marks and logos are the property of their respective owners.

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*End of v1.1 addendum. v1.0 remains canonical for all matters not explicitly amended above.*