Defined terms for the annuity market and lifetime income landscape.
The solidarity principle is the normative position that members of a lifetime income pool accept some cross-subsidy among different risk classes in exchange for the broader benefits of pooling, distinguishing pooled arrangements from those that price each member at individual actuarial value.
Survivor credit is the income a surviving member of a lifetime income arrangement has received because other members have died, viewed from the survivor's account perspective rather than from the pool's flow perspective.
Systematic withdrawal versus annuitization is the structural comparison between drawing income from accumulated savings at a self-selected rate while retaining capital access, and converting that capital into a contractual stream of lifetime payments in exchange for surrendering the access.
A tokenized tontine is a tontine implemented through smart contracts on a distributed ledger, with membership represented as cryptographic tokens, mortality verification handled through identity and oracle systems, and payout execution performed automatically by on-chain code.
A tontine is a closed pooled-income arrangement in which a fixed group of members each contributes capital at the outset and receives a periodic income share for life, with the share of pool resources released by each member's death redistributed automatically among the surviving members.
