💊What are IP Tokens?

IP-Tokens (IPTs) are ERC-20 tokens that enable fractional governance over IP-NFTs.

Definition

Intellectual Property Tokens (IPTs) are ERC-20 tokens that are minted using IP-NFTs. IPTs are an extension of the legal and blockchain-based contracts that constitute the IP-NFT Protocol. IPTs enable governance over IP-NFTs and their attached IP, gathering token holders under a shared objective: to proactively drive the development and advancement of valuable IP.

Significance:

• On-chain Opportunities: IPTs open up new avenues for supporting cutting-edge research and development projects on-chain​, as on-chain portfolios can contain IP rights related to innovative scientific research.

• Market Liquidity: by tokenizing IP rights, IPTs enable increased liquidity and market accessibility. This creates a dynamic marketplace where IP assets can be transferred, thus enhancing their utility.

• Access to Funding: IPTs allow IP owners to raise funds by selling governance rights. This makes it easier for researchers and innovators to obtain the necessary resources to advance their projects without relying solely on traditional funding mechanisms.

Governance Rights:

Individuals possessing IPTs exercise governance over the IP-NFT from which they were minted. Their participation is governed by an adhesion contract, the IPT Membership Agreement.

IPT holders have the right to participate in the governance of the IP-NFT and its development, in compliance with applicable laws. These governance rights include:

• Voting on proposed licenses for the attached IP.

• Deciding on the distribution of any proceeds earned from the IP-NFT and its IP.

• Participating in the termination of agreements related to the IP-NFT and its IP.

Economic Rights:

IPT holders are not inherently entitled to any economic benefits. They do not have a predetermined, contractual right to receive any proceeds following the sale of an IP-NFT or its IP. Instead, IPT holders have governance rights and must actively participate in voting to decide on the management of IP licenses, sales, and other activities related to the IP together with the IP-NFT owner. Example of IPT Membership Agreement.

Read about the smart contracts for IPTs in our Github repo.