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What is IP-NFT fractionalization?
IP-NFT fractionalization is a method for directly distributing rights to IP-NFTs to groups of token holders such as members of a BioDAO.
A user fractionalizes an IP-NFT by locking that IP-NFT and minting tokens on Ethereum representing fractions of it.
When a BioDAO such as VitaDAO holds an IP-NFT, the BioDAO members do not have direct exposure to economic upside from the commercialization of the IP, NIPIA, or R&D data rights attached to the IP-NFT because any proceeds from commercialization are returned to the VitaDAO treasury to fund additional longevity research, much like proceeds from IP commercialization out of a university is returned to the university in order to fund further research at the university. Proceeds are not distributed to VitaDAO members because VitaDAO is a non-profit organization.
IP-NFT fractionalization enables people to obtain direct exposure to IP-NFTs through distribution of tokenized rights that apply directly to the IP, NIPIA, and R&D data attached to the IP-NFT.
IP-NFT fractionalization happens through a mixture of legal contracts and smart contracts.
The legal contract for the first phase of fractionalization is an adhesion contract called the the Fractional Association Member (FAM) agreement.
We tailored this agreement for DeSci to enable novel ways of organizing around IP development. FAM are members of an IP pool for the fractionalized IP-NFT.
In order to fractionalize an IP-NFT, the user mints fraction tokens from the fractionalization smart contract. Those tokens are governed by the FAM agreement, which establishes that the token holders are members of IP pool distributing managerial interests and potential financial incentives.
The legal contract for the second phase of fractionalization is the Fair, Reasonable, Ethical, & Non-Discriminatory Sublicense (FRENS).
We tailor built FRENS for to enable novel ways of organizing communities around ethical IP development using fungible sublicenses.
FRENS are still under development.
Last modified 29d ago