IP Asset Re-Staking

IP Asset

IP Assets are the core building blocks for the new IP paradigm. Each IP Asset is an on-chain ERC-721 NFT (representing an IP). When an IP Asset is registered, an IP Account associated with the IP Asset is created. The IP Account uses a modified ERC-6551 (Token Bound Account) implementation, and the owner (holder) of the NFT has permissions to invoke certain functions on the IP Account, e.g. what type of licensing. The set of accessibility permissions are controlled by Story's Access Controller Module, checking against whether owner-only functions are called by the holder of the NFT associated with the IP account, whether licensed-only functions are called by addresses holding a license, and many other permissions. Note that access controllers are not intended for controlling IP Asset registrations, i.e. they do not check newly registered IPs against existing IPs to prevent registrations of potentially violating IPs.

Problem

A problem with registered IP Assets is that they may unintentionally or deliberately violate existing IPs on the network, posing risks for existing IP holders and future creators. For example, if you came across a comic with a compelling superhero character and decided to create a new comic using that character's persona and background, you would register a derivative IP based on the original IP and mint a license tailored to your needs. However, if it turns out that the original IP infringes on another existing IP, that original IP and your derivative IP will both be frozen, rendering your time and money wasted. To prevent the above situations and especially with the ease of registering IPs onto Story leading to potentially malicious actors intentionally registering illegitimate IPs, there needs to be a metric indicating the degree of an IP's validity.

IP Asset Re-Staking Flywheel

Introducing restaking on IP Assets. With the IP Asset staking mechanics, we are able to create a flywheel that protects and facilitates IP adoption on Story.

• To encourage utilization of and derivative innovation on a registered IP, owner of the IP together with Verio Protocol offer rewards on the IP Asset to attract stakers. This is also why the prior discussed liquid staking financial system is tied together with this IP Asset restaking system, because Verio will use a portion of the network staking rewards to subsidize IP Assets Staking.

• Stakers can choose to stake on the IP Asset and earn rewards, endorsing the legitimacy of the IP Asset. If IP Asset is however later disputed and deemed illegitimate, a portion of the stake is slashed and redirected to Verio for future IP Asset incentives.

• The amount of $vIP staked on an IP Asset serves as a legitimacy signal for creators when they decide whether to innovate or remix using this IP. This legitimacy signal is needed to facilitate smooth adoption and remixing of the existing IP.

• With a strong legitimacy signal, other creators will try to utilize and create derivatives on the IP, generating the owner of the original IP more revenue and royalty. Depending on the config IP owner chooses, the owner is also be able to receive immediate revenue in the form of staking fees.

The more $vIP is staked on an IP Asset, the more likely the underlying IP is legitimate, the more creators will feel comfortable innovating around the IP Asset, the more licensing fee and royalty the original owner of the IP will receive, the more incentives the original owner can continue to offer on the IP Asset to attract even more stake.

IP Asset Re-Staking Architecture

1. User stake $IP to receive $verioIP through Verio's LSD protocol.

2. Users delegate their $verioIP to their desired IP Validation Services. (They can choose to directly stake their $verioIP on IP Assets, but they would have to examine the IP Assets themselves and weigh the risks & gains).

3. IPVSs are maintained by operators & experts. After examining the IP Assets, they redirect users' delegated $verioIP to stake on their preferred IP Assets' staking pools. Different IPVSs will likely choose different IP Assets, although it is possible that two IPVSs employ similar strategies and delegate to overlapping sets of IP Assets.

4. Stakers earn rewards through their staked $verioIP and are compensated for their endorsement with the incentives that the owner of the IP Asset provides.

Withdrawal

To disincentivize dust farming and malicious stakers, there is a 0.1% fee charged when users unstake within the 14-day cool down. Staking activities should contribute to an IP's validity consensus instead of being used as quick farm and dump schemes. Users can claim rewards any time. After 14 days, withdrawal can be requested for the staked $verioIP without a fee, and it takes about 24 hours for a user to receive their original stake $verioIP.