This paper introduces the conception for a platform that heralds intellectual property tokens (IPT), decentralized Entrepreneurial Ventures (DEVs), and fractionalized IPT Ownership (IPTO) In order to bridge the gap between ideas and creation, and to address security concerns among participants in early-stage startups. We believe that by eliminating the barriers of trust through blockchain technology and providing a platform to serve as a gateway to better utilize this new technology, innovation will be able to scale and occur at practical yet impressive rates, new industries and marketplaces will emerge, and a new decentralized economy can begin to experience broader global adoption.
1. Introduction
While other blockchains and applications have introduced a new way for introducing security and eliminating the need for trust among contractual agreements, the reality is that there currently isn’t a platform where intellectual property and individual skills can securely connect. Without this medium, ideas have no protection while being shared, work provides no guarantee after being contributed, and ventures have limited exposure.
As a result of blockchain technology, and specifically NFT, advancements, the world has determined ways to secure data, creative art, and real-world assets as digital tokens. The utilization of NFT technology has been explosive. Still, the problem is that this new form of tokenized security is only available towards assets that already exist in either a physical or digital state. Currently, blockchain technology only provides security for tangible assets and users are unable to secure and leverage their intellectual property.
InvArch is an intuitive and cutting-edge decentralized platform that bridges the gap between ideas and creation; connecting a world of thinkers, creators, and finance under one ecosystem, allowing innovation to flourish. The InvArch platform will:
- Introduce the ability to tokenize intellectual property in the form of NFTs to the general public. These are called intellectual property tokens (IPT).
- Allow IPT holders to bond their token to an NFT called a decentralized entrepreneurial venture (DEV), which is democratically governed by a DAO.
- Institute fractional IPT ownership (IPTO) in order to be utilized to form partnerships, raise capital, and determine voting weight in a DEV.
- Be future-proof with non-disruptive upgrades and integrations, which will all be determined by the platform's governing community.
- Be a unique and first-of-its-kind platform for early-stage startup development, offering venture ownership in exchange for skills as an alternative to traditional job opportunities.
- Leverage the DeFi infrastructure of the Acala/Kasura networks in conjunction with the power of RMRK NFTs.
- Serve as a gateway for a decentralized economy, business environment, and global marketplace.
The InvArch platform’s native token ($VArch) is a multi-purpose-utility token. $VArch is required to stake in order to mint IPT and form DEVs, grants participation in the platform’s governance, and is the native currency of the entire InvArch decentralized economy.
2. Inventing, Involvement, and Investing.
Proxy/Entrance: Users will create an account and sign-in from the main page. Accounts must be KYC verified to ensure security and provide protection.
Development: Users will access a UI featuring their Vault, Dashboard, and Network, which are related to the key development features of InvArch.
Compliance: Structures in place designed to ensure decentralized oversight, and participant compliance within a DEV.
Assets: Within the Vault, users will be able to access all of their assets, from IPT, IPTO, $VArch, aUSD, and more in the future.
Integrations: Karura is the network that the InvArch platform is being deployed on, and is utilizing it’s intuitive DeFi infrastructure.
Initializations: The initialization main modules for minting an IPT, bonding it to a DEV, and minting IPTO.
2.1. Intellectual Property Tokens
The starting point for before any DEV can be formed is for an IPT to be minted. IPTs are intellectual property tokens, or concepts for innovations stored as NFTs built using the RMRK 2.0 standard. These special NFTs are the foundation on which all of their respective child tokens are built upon.
IPTs consist of certain parameters such as a unique name, the related industry (i.e. healthcare, engineering, software & applications, etc.), the industry focus (i.e. insurance, civil engineering, cloud security, etc.), an abstract of the IPT, a brief description of the problem being addressed, a blurb describing the solution, and any attached files that include schematics or images, documents, and/or any other elaborated details related to itself.
The InvArch platform's native token ($VArch) is needed to stake in order to mint and create an IPT. The staked $VArch is deposited and locked into a separate wallet address dedicated to the InvArch platform and not controlled by any centralized entity. This remains secured until its respective IPT is completely dissolved, at which point the staked $VArch is returned to its owner’s wallet.
Unlike standard NFTs, intellectual property tokens do not include linked “editions” similar to what is seen in the digital art space. IPTs can be updated; however, while having mirroring editions has many uses in the digital art and metaverse worlds, it would cause defectiveness in its intended function of building partnerships.
2.2. Decentralized Entrepreneurial Ventures
Partnerships formed over the InvArch platform between authors of IPTs and users with the skills and resources required to actualize said IPT are called decentralized entrepreneurial ventures (DEVs). DEVs are NFTs built on top of an IPT that are governed by DAOs and exist to ensure compliance and security over the network.
DEVs consist of several processes over the course of their existence:
- Formation
DEVs are first created by staking $VArch, bonding an IPT, and providing the following parameters: The roles that the DEV is seeking to fill in order to actual its IPT. The division and allocation of IPTO throughout the project and being offered for each role. A Charter that reviews the previously mentioned parameters in addition to the DEVs governance and participant functions, the timeline expectations for the project, and a brief description of the project, which is pulled from its IPT. Participants can apply to join a DEV as a co-founder/partner, and upon the DEV founder's discretion, the full contents/details of a DEV can be displayed after the requester has completed and signed an NDA.
- Charters
Charters are governing constitutions that decide how the DEV will be regulated. Charters provide a clear and well defined breakdown of the roles and responsibilities within the DEV, the allocation and uses of the project's IPTO, compliance standards and expectations, what is defined as misconduct within the project, and how to handle violations.
- Governance
Projects are governed by DAOs as direct democracies. Every DEV has a maximum and preset number of 10,000 votes that can be submitted within themselves. These votes are reflected through IPTO, meaning that a participant has 1 vote for each IPTO that is theirs. Consensus is reached in majorities of 51% and 67%, depending on the measure being voted on.
- Security & Compliance
In order to prevent bad actors from taking over DEVs, preset distribution ranges of IPTO must be followed within a DEV in order to incorporate a decentralized democracy to take part in governing and oversight when needed. While this body does not have to be included in when voting measures that pertain directly to business and financial measures within a DEV, they’re inclusion could be invoked by another founding member of the DEV, or when actions of misconduct are being addressed. Examples of misconduct. Misconduct is predefined as acts of blackmail, extortion, theft, and/or negligence; however, additional actions can be included in a DEV. Consequences can result in termination of one’s stake and participation in a DEV.
Weekly logs and repository updates are required in order to record and track development performance and progress.
These distribution structures are elaborated more later in this document when reviewing IPTO
- Restructuring After Completion
Multiple options for restructuring are provided upon the completion of a DEV. Completion is primarily defined as an MVP being available for deployment or sale; however, completion is defined and reached through a 67% consensus vote among DEV participants.
When completion has been reached, depending on the founding structure of a DEV, projects can restructure as non-profits, corporations, or even be deployed as decentralized organizations. Other options may be added or created in the future, but these are the options that InvArch will provide to start.
- Termination Based Liquidation
In the event that a participant is voted out of a DEV due to misconduct, then they will relinquish their IPTO stake in that project. If the participant had to stake $VArch as a condition for joining the DEV, then that participant will have their $VArch unstaked and returned to them. The IPTO will then be returned to its DEV’s treasury fund.
2.3. Fractionalized IPT Ownership
In order to leverage fungible tokens representing both ownership and voting weight, fractionalized IPT ownership (IPTO) is minted in quantities of 10,000 at the inception of a DEV. Each IPTO represents a 0.01% stake in the project and 1 total vote over governance measures.
- Security Through Distribution
What ensures security between participants in a DEV is the fact that they are decentralized. That being said, they are not centralized agreements made between 2 or 3 actors. They are decentralized ventures that involve 2 or 3+ co-founders and a democratic voting bloc that consists of the general public throughout the InvArch platform.
To ensure that no single actor can have a 51% hold over a project, IPTO can be distributed within the following ranges:
A DEV can dedicate 0-66% (0- Max. 6600) of its IPTO to its founders (non-profits would distribute 0%). The rest (Min. 3400-10,000 IPTO) would be allocated to the DEVs treasury. The total distribution between these two must equal 100% of the DEV’s IPTO.
f + t = 10000 | 0 ? f ? 6600 | 3400 ? t ? 10000
Among the Founders, out of however much IPTO is decided to be allocated, no single participant can have more than 50% (Max. 3300) of the allocated IPTO. No single co-founder can have a higher stake than the original founder. The distribution algorithm for the founder's distribution is:
f(O) / p(n) ? p(O)
Where f(O)represents the original founders' total IPTO ownership, p(n)represents the number of co-founders, and p(O)represents a co-founder’s IPTO ownership. This statement must pass in order to form a DEV, and changes that break this statement cannot be implemented.
- Financial Inclusion
IPTO can be dedicated towards the general public for a low-cost fee paid in $VArch or aUSD, and is used towards the development and/or marketing of a DEV. Similar to how many cryptocurrencies are used as both utility and a means to raise funds, IPTO can be utilized in the same manner. While initial plans are to allow sales of IPTO to only be performed between a DEV and a buyer (not between the general public), IPTO could later be integrated into a DEX through the Karura network.
- Voting Weight
IPTO acts as a governance token over a DEV. Holders have rights to propose development changes, financing strategies, report misconduct, and vote on status consensus reports. Every DEV has 10,000 votes, with an IPTO representing a single vote. The more IPTO a participant has, the more voting weight they have.
3. User Interface & Integrations
One of the key development focuses of InvArch is to be appealing and user-friendly towards the general public (similar to Facebook/LinkedIn interfaces). The InvArch app will be the gateway for all other integrations and services related to the platform.
3.1 InvArch App
The InvArch app will first be deployed as a desktop application, and will later include a mobile app as well. The app will include access to a user's wallet, DEVs and development integrations, as well as a venture networking platform.
- Wallet
The InvArch wallet will be used to store $VArch account balances, aUSD balances, Owned IPT, and IPTO in DEVs. Additional currencies can be included seamlessly thanks to Karura’s multi-chain interoperability; however, the main focuses are the network’s native token ($VArch) and a secure stablecoin (aUSD).
- Networking
One of the flagship features of the platform is the networking portal. This is where users will be able to showcase their DEVs and seek partnerships, connect with other individuals and find opportunities, and share information on their projects with their connections and followers. Users will have profiles that will include their background and past experiences, and a resume if available. DEVs can have their own pages, where they can build a following and connect with their community.
- Development
A more intuitive feature of the InvArch platform is its development portal. This serves as a gateway to a DEV’s repository, development integrations and tools, and governance committees. Apart from business development and fundraising, all development matters within a DEV take place through this extension of the InvArch platform.
3.2 Acala/Karura DeFi Integration
One of the key benefits of deploying on the Karura network is the ability to share their robust infrastructure and integrate their powerhouse suite of DeFi functionality.
- Transactions
Upon the final phases of the InvArch platform’s development, the integration of Karura’s decentralized exchange. This will provide a framework for allowing users and DEVs to leverage IPTO in order to raise funds for their operations.
- Stability
While $VArch is required to stake in order to form IPTs and DEVs, in order to foster a more financially stable and secure environment on the InvArch platform, fundraising efforts and IPTO transactions will be processed using aUSD, the stablecoin of the Acala/Karura network. InvArch marketplace purchases will be processed using aUSD, also.
4. $VArch Token & Operation Finances
The InvArch platform’s native token ($VArch) is a multi-purpose governance and utility token. Holding $VArch grants voting authority of the future of the platform. $VArch is also required to stake in order to mint IPT and bond it to/mint a DEV.
The max supply of the $VArch token is set at a hard cap of 11,000,000. In order to finance initial operations, build the development team, and build a community following, 2.5m $VArch tokens will be sold at a ratio of 1 $VArch : $1 USD, for a total seed fundraising of $2.5m USD. Following development milestones, InvArch will undergo a pre-sale event; an additional 1m $VArch tokens will be sold at a ratio of 1 $VArch : $2 USD, for a total fundraising of $2m USD. Immediately prior to the launch of the InvArch platform, a final and general sale will take place; the remaining 4.5m $VArch tokens will be sold at a ratio of 1 $VArch : $3 USD, for a total fundraising of $13.5m USD, and a final amount of $18m raised to fund the platform’s development, marketing, and expansion efforts.
In total, approximately 73% of $VArch tokens (8,000,000) will be sold to the public. 15% of $VArch tokens (1,650,000) will be dedicated to the InvArch development team. Approximately 7% of $VArch tokens (800,000) will be reserved towards the platform’s treasury in order to help fuel future developments. A final 5% of $VArch tokens (550,000) will go towards the platform’s grant program.
The minimum investment amount for $VArch seed-sale participants is $10,000 USD. $VArch pre-sale participants are subject to a 1-year cliff and 1-year linear vesting period. $VArch general sale participants are subject to a 6-month linear vesting period.
5. Summary
InvArch aims to do much more than just provide a means of communication between project partners, and even more than connecting a world of innovators, inventors, and investors together under one ecosystem.
InvArch has a vision for a decentralized global economy and marketplace; a world where global problems are able to be promptly and efficiently solved, socioeconomic barriers are dismantled and disparities begin to dissipate, and a more harmonious society exists. A better world, built by everyone through an invention, involvement, and invention arch.
Learn more: https://invarch.io/
