Tokenizing IP Assets with ERC-6551 and Sigmoidal Bonding Curves

### Introduction Tokenizing intellectual property (IP) assets using a sigmoidal bonding curve and ERC-6551 token-bound contracts presents new opportunities for creators, investors, and users. This document outlines the process of creating ERC-6551 contracts, fractionalizing ERC-721 IP tokens, and utilizing the bonding curve for speculative derivatives. ### Token-Bound Contracts and ERC-6551 ERC-6551 is an Ethereum standard for token-bound accounts, which act as wallets for ERC-721 non-fungible tokens (NFTs). These contracts provide an additional layer of security and control over digital assets, ensuring that only the rightful owner can control the token. By utilizing ERC-6551, the IP assets can be securely held within an NFT-based wallet[2][4][6]. ### Fractionalizing ERC-721 IP Tokens To enable broader ownership and liquidity of IP assets, the ERC-721 IP tokens can be fractionalized into ERC-20 tokens. Fractionalization allows for the representation of direct ownership of the IP within the ERC-721 token. These ERC-20 tokens can then be used to represent shares or portions of the IP, enabling fractional ownership. ### ACX Tokens and GGV Score ACX tokens are earned from the Gross Game Value (GGV) score, which is obtained by maintaining and producing a high-quality game. The GGV score measures the value and quality of the game developed by the team. By earning ACX tokens through the GGV score, the IP value of the game and the team increases. These ACX tokens, along with the fractionalized tokens, are used to mint the speculative IP tokens from the sigmoidal bonding curve[1]. ### Sigmoidal Bonding Curves for Speculative Derivatives The sigmoidal bonding curve is a mathematical function that determines the price of tokens based on supply and demand dynamics. It consists of three distinct phases: the learning phase, the growth phase, and the decline phase. Early investors are heavily rewarded, while late investments are charged higher prices. This creates an opportunity for investors to speculate on the potential success of the IP asset and its corresponding token[2]. The speculative derivatives of IP tokens are minted using ACX tokens and the fractionalized tokens. Both ACX tokens and fractionalized tokens can mint the IP risk token at different rates, providing flexibility in the creation of speculative derivatives[1]. ### Benefits and Use Cases Tokenizing IP assets using ERC-6551 and sigmoidal bonding curves offers several benefits and use cases: - Speculation: Investors can speculate on the potential success of IP assets by trading the derivatives of IP tokens on the bonding curve. - Access and Licensing: IP tokens can be used as a means of accessing and licensing IP assets, creating new revenue streams for creators and facilitating collaboration and innovation. - Fractional Ownership: Fractionalizing ERC-721 IP tokens into ERC-20 tokens allows for broader ownership and liquidity, enabling investors to own a fraction of the IP asset. - Borrowing Against IP Value: The bonding curve and the value locked in the ERC-721 IP tokens provide the capability for creators to borrow against the actual value of their IP assets. ### Conclusion Tokenizing IP assets using ERC-6551 and sigmoidal bonding curves opens up new possibilities for creators, investors, and users. By creating token-bound contracts, fractionalizing ERC-721 IP tokens, and utilizing the bonding curve for speculative derivatives, the IP ecosystem can benefit from increased liquidity, access, and value realization. The combination of ACX tokens, GGV scores, and fractionalized tokens adds further value and functionality to the ecosystem. Citations: [1] https://tokeneconomy.co/token-bonding-curves-in-practice-3eb904720cb8[2] https://www.primafelicitas.com/Insights/understanding-bonding-curves/ [3] https://medium.com/molecule-blog/token-bonding-curve-design-parameters-95d365cbec4f[4] https://ethereum-magicians.org/t/erc-6551-non-fungible-token-bound-accounts/13030?page=6[5] https://mirror.xyz/0x8fF6Fe58b468B1F18d2C54e2B0870b4e847C730d/1Pxl_fbIPifIQ4_y0xoJGZGEk70qfOM3Gi9nWycm-8k[6] https://www.terrencegatsby.com/beyond-the-hype/crypto/erc-6551-token-standard-101/ Please feel free to use this information as a starting point to create your own document. Citations: [1] https://tokeneconomy.co/token-bonding-curves-in-practice-3eb904720cb8 [2] https://mirror.xyz/0x8fF6Fe58b468B1F18d2C54e2B0870b4e847C730d/1Pxl_fbIPifIQ4_y0xoJGZGEk70qfOM3Gi9nWycm-8k [3] https://medium.com/molecule-blog/token-bonding-curve-design-parameters-95d365cbec4f [4] https://ethereum-magicians.org/t/erc-6551-non-fungible-token-bound-accounts/13030?page=6 [5] http://mundus.dev/tpost/1t1euygmi1-overview-of-eip-6551-token-bound-account [6] https://www.terrencegatsby.com/beyond-the-hype/crypto/erc-6551-token-standard-101/