【Unleash Protocol】IPFi Protocol for IP tokenization and autonomous license management / Built on Story Protocol / @UnleashProtocol
Tokenize IP and connect to finance.
Good morning.
Mitsui from web3 researcher.
Today we researched the Unleash Protocol.
🟡What is the Unleash Protocol?
🏦Marketplace is also in place
💬IPFiThe era of IPFi begins.
🟡What is the Unleash Protocol?
The Unleash Protocol is an IP operating system that resides on top of the Story Protocol, which aims to manage IP on the blockchain.The Story Protocol is the blockchain and the Unleash Protocol is the protocol on top of it.
Unleash Protocol, like Story Protocol's sense of challenge, addresses issues such as the prevalence of IP piracy and cumbersome licensing procedures; unauthorized use of IP deprives creators of revenue opportunities, and cumbersome licensing procedures reduce opportunities for IP expansion.
Therefore, we leverage blockchain technology to streamline the registration, licensing, and transaction of IP assets.It ensures the security and traceability of transactions by providing a clear and unalterable record of ownership.
Specifically, we are developing two major types of functions.
IPad
IPad is a set of functions to manage IP on the blockchain and has three components: IPGE, IPCO, and IP Studio.
IPGE stands for "IP Generation Event" and refers to the process of registering IP on the blockchain.
Register: Register the IP on IPad and provide a detailed description and related documentation.
Minimal Review by Unleash Team: After registration, the Unleash team will conduct a minimal review of the submitted registration to ensure compliance with basic legal standards.compliance with basic legal standards.
IPCO: IPCO based on the sales structure submitted by the IP owner.(*Details to follow)IPCO
Automatic generation of NFT: IP is automatically split into ERC-404 tokens at IPGE and tokens are distributed to IPCO participants.(*Details to follow).
I will explain "IPCO" that appeared along the way.The official name is not written, but it probably stands for "IP Coin Offering" in reference to ICOs.
This is the act of dividing and selling IP ownership into tokens.The registered (applied for) IP is sent to Story Protocol via Unleash Protocol and minted as an NFT in ERC-721 format.
I think it is probably in the form of an ERC-404 token issued based on that ERC-721 form of NFT, which allows partial ownership of the IP.(It was mentioned that the ERC-404 would be a split ownership of the IP, but I could not discover which NFT it was linked to.However, the IP is registered with an NFT, so it should be the token tied to it)
The ERC-404 token holder will be able to trade, lend, and provide liquidity for tokens on the Unleash Market (described below) and participate in the IP Studio.
The IP Studio is a DAO that manages the governance of IP, and conducts discussions and votes on IP expansion.In addition, it discusses and votes on whether or not to approve proposals from businesses that wish to license the IP.Only if the proposal is approved, the IP can be licensed for use.
The entity proposing the use of the IP must also have an ERC-404 token for the IP.
Furthermore, by staking ERC-404 tokens, it is possible to receive a share of the proceeds from the licensed use of the IP.
Below is the overall picture.Once again, we will organize the positioning of each.
Registration by creator/artist: The creator or artist will register their work to launch the IP.At that time, they will submit details such as the total supply of tokens, the percentage of tokens to be sold, and the initial offer price.
IPad Transmission: IP details are sent to the IPad platform, which serves as the central processing point within this ecosystem.
Registration and receipt of IP Asset: The IP Asset is registered within the Governance Contract and transferred to NFT's (ERC-721).Here it is minted as an IP Asset in conjunction with the Story Protocol.
Create Token Contract: An initial contract is created using information from the creator.This contract defines the terms and rules related to IP ownership.IPCO Participation
IPCO Participation: Interested parties can participate in the Launchpad, bid on IP offerings, and fund IP offerings.
ERC-404 Token Receipt: Participants will receive an ERC-404 token representing partial ownership of the IP.These tokens allow the holder to participate in governance and other activities within the ecosystem.
Staking and Trading on IPFi: ERC-404 holders can participate in IP Studio (7a) by staking tokens, trade/swap tokens on the IPFi platform (7b) to trade/swap tokens and participate in various financial activities related to IP.
Royalty Payments: When IP is used, users pay royalties.The royalty distribution mechanism is managed through the IP governance structure to ensure that creators and token holders are compensated for their use of the IP.
Royalty claims in governance: Token holders may claim royalties on IP subject to governance.
Royalty distribution based on stake: Royalties will be distributed to token holders based on the amount staked and rewarded for their investment in IP.
Do you understand?
In addition to managing license agreements, partial ownership can be tokenized and sold.DAOs by their ownership holders are also deployed, and the passage of license agreements and the associated revenue distribution is performed automatically.
🏦A marketplace is also maintained
Now, let's move on to the other function of the Unleash Protocol, the "Unleash Market".
As mentioned above, the Unleash Protocol has two functions.
Simply put, it's DEX.
It is still a test net, so there are no IP tokens yet, but I believe that IP tokens issued by ERC-404 will be able to be traded here in the future.
Here, not only token swapping, but also lending and liquidity supply functions exist, enabling IP-based financial activities "IPFi".
It is meaningless to just tokenize IP with IPad.Only when there is liquidity does it have value.Therefore, the DEX is also natively built, and the tokens sold at IPCO will only have value if they are traded here.
In addition, the ability to borrow crypto assets using ERC-404 tokens, which represent partial ownership of IP, as collateral, or to obtain additional yield by supplying liquidity, is truly opening up new possibilities for IPFi.
However, since it is still a test net and the protocol itself was only recently announced, there was no public information on how to make the new token liquid.We will wait for further information here.
💬The era of IPFi begins
Finally, a consideration.
Following the recent article on the Story Protocol, I discussed the "Unleash Protocol" because a concrete use case on the Story Protocol was published and it looked interesting.
My impression is that the "Unleash Protocol" is a concrete product of the concepts described in the Story Protocol, and it has raised the resolution of managing IP on the blockchain considerably.
I personally feel that the key points of the "Unleash Protocol" are as follows
Partial ownership is issued in ERC-404 tokens
Licensing is granted by the ERC-404 token holder
Licensed users must also be ERC-404 token holders
Receive revenue sharing through staking
DEX and lending will be connected to financial activities.
I believe one of the benefits of putting it on the blockchain is that it will scale autonomously, but to do that you need to align the incentives of the stakeholders, like in the PoS system, to make everyone a stakeholder so that there is no incentive for a malicious entity to attack.It is necessary to do so.
In this regard, by making both the proposer and the licensor of the licensed use an ERC-404 token holder, both parties will be discussing and voting in a way that maximizes the value of that IP.
Also, since staking is required to receive revenue sharing, it is assumed that many people will probably staking.In that case, we can expect token prices to rise as the supply to the market decreases, and we can expect the APY of liquidity supply on the DEX side to increase proportionately.
My personal concern is in the design of token economics, whether each IP token will need to set its own allocation for each IP token, and what about liquidity in the market.I feel that if we were to set it for each IP perhaps it would be confusing to have tokens issued without liquidity or an oversupply.
So I think I would settle for a certain type but with some customization.It is also very difficult to create liquidity for each IP token, so maybe they will issue their own tokens like Sanctum that can be exchanged for all IP tokens and provide liquidity.
Currently, there is no hint of a token for the "Unleash Protocol" itself.We believe that it will probably issue a token, but there was no mention of a token in the Document.
Nevertheless, we will continue to watch the "Unleash Protocol" as it becomes more valuable in the future as the Story Protocol takes off in earnest.
The era of IPFi is about to begin.
🔗Reference/image citation link:HP / DOC / X
Disclaimer：I carefully examine and write the information that I research, but since it is personally operated and there are many parts with English sources, there may be some paraphrasing or incorrect information. Please understand. Also, there may be introductions of Dapps, NFTs, and tokens in the articles, but there is absolutely no solicitation purpose. Please purchase and use them at your own risk.
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mitsui
A web3 researcher. Operating the newsletter "web3 Research" delivered in five languages around the world.
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