Re-Staking Incentives
Creator Offered Incentives
To bootstrap an IP Asset's validity recognition on Story, an IP owner can offer rewards on their IP Asset to attract users staking on the IP Asset. Users can also choose to delegate their stake towards professional operators managing IP Validation Services (IPVS), which will strategically help redirect users' stake towards IP Assets. The incentives can be in different forms, but mainly two types: Token Rewards and Royalty Tokens.
Token Rewards can be in the form any ERC-20 tokens (e.g. $IP, $verioIP, $USDC). The upside for this type of incentives is that the value of the rewards can be easily calculated and thus should be able to attract more users if the yield makes sense. The downside is that the creator has to put up rewards up front. On the other hand, Royalty Tokens are tied directly to the asset's future adoption and royalty generations - the value of the incentives are more speculative. Therefore, the upside is that the creators does not need to offer any money up front. The downside is that it requires more sophisticated users or IPVSs to perform analysis and deduce the potential of the IP. In this format, we also expect to charge a fee on the stakers and distribute it to the IP owner, effectively helping creators "crowd sell" a portion of the royalty tokens in the form of staking rewards and receive revenue in the form of $verioIP. This behavior can kickstart a flywheel where the creator gets immediate access to capital, and stakers validate the legitimacy of the IP Asset and believe in its potential, making the creators and stakers more long-term aligned on the success of the IP Asset.
The concept of IP owners offering incentives on their IP Asset may seem like a new concept, but it's already very well adopted in the web2 space in a slightly different forms. For Disney, they pay tens of millions a year in legal fees for IP protection; for many creators, they run ads on Instagram, Facebook and Google to reach more audience for their work. Stake weight serves both the purpose of protecting ur IP from disputes and increase the discoverability of your IP Asset across different marketplaces and IP registration platforms, facilitating remixing and adoption by other creators and users.
We do expect this creator offered incentives approach to be the predominant form of rewards. But to further encourage IP registrations on Story and achieve widespread adoption, Verio also strives to incentivize staking pools on IP Assets alongside their creators.
Verio Incentives Pool
Verio's incentives pool consists of tokens from the different types of revenue and resources below:
$IP rewards accrued from users staking $IP with Verio.
Slashed $verioIP from staked IP Assets in violation of other IPs.
Verio protocol's native token $Verio.
The incentives pool is not meant for farming on registration of random IP Assets. Verio actively protects against malicious actors through some of the following (but not limited to) considerations:
How long has it been since the IP Asset is registered onto Story?
Has the creator offered any incentives (Token Rewards or Royalty Tokens) at all on their IP Asset?
How much $verioIP has the creator put up to stake on their own IP Asset(s)?
Does the creator have a consistent good track record of registering non-disputed IPs?
An incentivization score will be given to each newly registered IP Asset, and based on this score, incentives will be allocated to the IP Asset's staking pool. (Note that this incentivization score is completely separate from the IP Asset Score.) Depending on the IP utilization rate, staking activity, and time elapsed since registry, Verio's incentives directed towards its staking pool will vary over time.
Last updated