InvArch EduSeries 4: The SIPA Revolution & A New Golden Age For Innovation.
Welcome to the InvArch EduSeries: a series of articles introducing the significance of the InvArch network, explaining its technologies, & highlighting the dire problems it solves!
We kicked things off by describing the issues of IP rights plaguing the world today in the InvArch EduSeries 1: The IP War Zone & Innovation Graveyard We Live In. We followed up by introducing the solutions to these problems in the InvArch EduSeries 2: Blockchain’s Bright Light & A Shining Future For IP Assets. We then elaborated on how InvArch will provide a powerful new vehicle for managing & transferring IP with the InvArch EduSeries 3: Web3’s Super Highway & The Future Of Transporting IP Rights.
In the next chapter, the InvArch EduSeries 4: The SIPA Revolution & A New Golden Age For Innovation, we will explore some of the most powerful features of InvArch: Intellectual Property Tokens (IPTs), Sub-Assets, & SIPAnomics.
Let’s begin by making one thing very clear: the InvArch network is anything but just another blockchain. InvArch pushes the bounds of web3 by taking existing concepts & challenging them to be different and better. By unlocking new doors & redefining what’s possible, InvArch will revolutionize the worlds of technical development & real-world collaboration down to their very core.
Pallet IPT 2.0 & Sub-Assets: Realizing The Power Of Multi-Tiered Assets.
Following up on the novel approaches to data composability, copyright licensing, & non-fungible asset structures covered in InvArch EduSeries 3: Web3’s Super Highway & The Future Of Transporting IP Rights, the InvArch network seeks to revolutionize digital assets even further. While non-fungible assets are the foundation of the INV4 protocol, the fungible assets pegged to them give them extraordinary power.
We’re not simply talking about a single class of fungible tokens pegged to an IP Set (IPS) representing fractional ownership; this is more than re-fungible tokens. The InvArch network will introduce the ability to have multiple tiers of different fungible assets to be pegged to the same root IPS. For those of you asking questions like “what exactly does this mean” and “what is the significance,” let’s dive down the rabbit hole, shall we?
Spoiler: the potential is absolutely bonkers & just as equally exciting!
Let’s review what re-fungible tokens (RFTs) are. An RFT is when a fungible asset owns a non-fungible token (NFT), thus making the NFT fungible once again. The concept for such technology was first introduced back in 2018 by Billy Rennekamp, and readers can find a more thorough review below.
Fun Fact: Re-Fungible Token (RFT) & Multi-signature functionality already exists on InvArch, and can be tested on the InvArch Tinkernet chain.
We’ll begin by explaining how a single tier of fungible tokens can be powerful & applied to the real world.
- Real Estate —Land deeds could have their ownership divided into multiple shares. These shares could then be sold on real estate marketplaces & added to individual investment portfolios.
- Joint Financing — Auto loan agreements could be fractionalized amongst multiple parties. This would allow for decentralized organizations to fund & jointly launch carsharing services.
- Copyright Ownership —Joint copyright agreements could be easily managed. This would allow separate entities to hold legal ownership & share their claims to royalties.
Now, the aforementioned use-cases are compelling, practical, and are only a portion of the unrealized possibilities; however, as it is the spirit of the network, InvArch seeks to challenge the technologies of RFTs to be even better.
So we ask, “If RFTs are fungible tokens owning an NFT, what if that same NFT owned its fungible tokens simultaneously? What if there were multiple tiers of fungible assets or the ability to separate & organize individual utilities among different fungible tokens? What if we approach fungible assets with the same endeavors for composability as we do with NFTs?”
The result is Sub-Assets. Let’s explore the use cases that illustrate the extraordinary potential for these Sub-Assets, which are multiple tiers of fungible tokens.
- Scaled Staking —For example, individuals could earn 10% APY on an IPT1. Now, let’s say that for every 10,800 blocks a user stakes 100+ IPT1, they’re given an IPT2. Now, let’s say that for every IPT2 a user holds, they get a 0.25% increase in staking rewards (capped at 5%). This allows projects to incentivize & encourage long-term staking.
- Security Firewalls — Websites & applications (both buildable using tokenized IP Sets) could have different content, webpages, & features provided depending on the tier of a user’s access token. This could be applied to subscription services as well.
- DAO Structures —Different tokens would provide access to different channels and provide the ability to separate which users can vote on which matters. This makes multi-layer governance extremely easy to establish! This also allows the ability to separate the different utilities & access in dApps.
However, one of the most potent possibilities may be the inclusion of SIPA protocols…
Scalable Incentivized Proof of Attendance (SIPA): A New, Fair, & Trustless Economic System.
Now, we challenge our readers to bring their big brain energy & think outside of the block, err… box. Prepare yourself, for we are now going to introduce a powerful new economic system to our readers. The name of this system is SIPAnomics or Scalable Incentivized Proof of Attendance (SIPA) economics. The significance of SIPAnomics is its potential to provide a genuinely fair economic system for national & global economies, one that isn’t just ideal in theory but also sound in practice. Let’s get into it!
You must understand what a Proof of Attendance Protocol (POAP) is, as Scalable Incentivized Proof of Attendance (SIPA) protocols are more advanced versions of POAPs.
First, let’s review some points that many of our readers may find relatable:
- Individuals do not like to be starved of the fruits of their labor.
- Obscurity around promotion tracks & raises makes them hard to come by.
- Women are often paid less than men for the same work provided.
- Individuals are often paid less than others, depending on their location.
- Many employees help build successful companies that they never own.
- Rewarding those who do not contribute discourages participation.
By listing these points, we hope that our readers will understand some of the current flaws of economic systems found throughout the world today. We’ll begin by reviewing the core components of a SIPA protocol. SIPA protocols can feature more fungible components than what is about to be listed; however, the following three assets help provide the most basic conceptualization for a successful SIPA model:
- Ownership Tokens: Fungible tokens representing legal ownership
- Currency Tokens: Fungible tokens representing a payment medium
- SIPA Tokens: Fungible tokens representing proof of contributions
With these core components noted, we can now dive into the world of possibilities with SIPAnomics! This article will cover 3 SIPA protocol examples, each more complex than the previous example. These examples are provided in the form of SIPA equations, each of which is explained further. Please note that these are just three examples out of the near-endless amount of possibilities.
The following variables are defined: IPT0 = ownership tokens, IPT1 = currency tokens, IPT2 = SIPA tokens, Sg = SIPA gain, Bt = block time, Bm = benchmark, i = interval, $ = currency payment.
SIPA Protocol Example 1
Bt = Bm→ IPT1+= $(1+ IPT2), Bm+= i
- Let’s say that every 10,800 (i) blocks (approx. one week), an employee or project participant is provided a regular base salary ($) in the form of IPT1 currency assets.
- When the block time (Bt) hits the interval benchmark (Bm), IPT1 tokens are distributed (this is similar to vested payments) & the benchmark is increased by the 10,800 (i) blocks.
- Now, let’s imagine that this is a position for a software developer and that there is an agreement (controlled via smart contract) that provides 1 IPT2, or SIPA token, for every 25 lines of code that is pushed & merged (using the InvArch network’s upcoming flagship application, GitArch) to the project (IP Set).
- Now, let’s imagine further that each IPT2 is worth a value of 0.01.
We now have a system where payment structures are transparent & trustless salary raises can exist. As the developer successfully contributes to the project or business, they can gain SIPA tokens as they contribute. As they accumulate SIPA tokens, their base IPT1 (or salary) increases in real-time & scales with their performance.
This is similar to gaining damage buffs and/or multipliers in a video game as you continue to hit your streak.
SIPA Protocol Example 2
[(Bt = Bm) ^ (IPT2 ≥ X)]→ IPT0 += 1, Bm+= i, X +=
Let’s continue with our developer from the first SIPA protocol example.
- Now, let’s say that in addition to the developer’s base salary model, every 10,800 (i) blocks (approx. one week), the developer’s total SIPA token (IPT2) holdings are referenced.
- If the total number of SIPA tokens (IPT2) has reached a preset threshold (X), then a new ownership token (IPT0) is minted and administered to the developer.
We now have a system where growth tracks are transparent & trustless promotional opportunities can exist. Individuals need not worry or question whether they will see increases in their living standards as time passes & they dedicate themselves to a project or business. They won’t need to worry about discrimination on any basis. All they will need to be concerned about is where they can best contribute & receive the best SIPA contract possible.
This is similar to gaining experience & bonus multipliers in a video game until eventually unlocking a bonus item or achievement that grants permanent benefits.
SIPA Protocol Example 3
[(Bt = Bm) ^ (Sg ≤ X)]→ IPT2 -= Y, Bm+= i
Let’s finish using the same developer from past SIPA protocol examples.
- Now, let’s say that in addition to the developer’s base salary model, every 10,800 (i) blocks (approx. one week), the developer’s SIPA gains (Sg) are checked.
- Suppose the SIPA gains (Sg) (a reflection of how much the developer contributed over the last week) are below a certain threshold. In that case, the developer can also have SIPA tokens taken away.
We now have a system where laziness can be trustlessly addressed & penalized. Projects & companies do not need to worry about their management getting lazy or growing complacent in their roles. Individuals are incentivized to contribute; however, agreements can be in place, so a decline in contribution can cause SIPA benefits to decline.
This could be viewed similarly in a video game as having a multiplier bonus in place that slowly starts to count down as you fail to continue your streak.
The Power & Potential of SIPAnomics
To name a few:
- Enterprise Models — Businesses, projects, and all kinds of organizations can have their employee & participant structure, including pay agreements & performance monitoring, automatically managed in a transparent fashion that helps prevent discrimination. This can all be done while incentivizing participation.
- Trustless Payscales— Across web3, individuals can find peace of mind with transparent compensation agreements. Wages & SIPA rates (which reflect salary multipliers) can be set & executed trustlessly by smart contracts. The path to promotion can be clear, and individuals will be able to earn their raises in real-time rather than wait to ask for a raise & possibly be turned down or face retaliation.
- On-Chain Resumes — Experience working on projects will be verifiable & recorded. SIPA tokens can be used as a baseline for determining experience. Employers will no longer need to question the validity of a candidate's work history, and skilled individuals will be able to stand out easily. In the future, SIPA tokens can also have specific data attached to them, such as what position the SIPA token is being rewarded towards. These tokens could then be weighted depending on the project's success that administered the SIPA tokens and can be used to establish career ranks throughout the entire ecosystem.
- Rank Management — SIPA protocols can hypothetically feature ranks as well. Imagine a marketing manager who earns SIPA tokens. Every 50 SIPA tokens could earn them an IPT3 token that reflects a rank level. One IPT3 equals rank 1; two IPT3s equals rank 2; 5 IPT3s equal rank 3, and so on. Ranks could come with additional (optional) rewards such as permanent increases to their base salary, special access to exclusive communities, or act as an identifier of a veteran contributor.
- DAO Participation — For those of you reading who are members of a DAO (or a few), you are likely familiar with the practice of a DAO having different roles for different members. Sometimes these roles are used to administer various levels of admin rights. Sometimes they are used to identify the responsibilities of certain members. Sometimes they are used to identify active & affluent members of a DAO.
- DAO Structuring — Additionally, DAOs often have tokens with their own “one-size fits all” utility (funding, access, governance). With a SIPA protocol, all of these processes can be revolutionized by streamlining them & making them transparent. You can easily provide different growth tracks for DAO members. A DAO can have a fungible token representing voting rights and a utility token used as a currency medium to fund ventures. Finally, they could have another token representing fractional IP from those funded projects.
The beauty of SIPAnomics is that it is an immensely potential economic system that will not require a revolution for its adoption. We believe that all it will take is the fall of a single domino.
A Glimpse Into The Future: Innovation & Economics Powered By The InvArch Network.
Let’s take the power of the InvArch network further and explore the realities of the InvArch Parachain in conjunction with the power of another Polkadot Parachain.
Acala: aUSD in the InvArch ecosystem.
To those who are not yet familiar with Acala ($ACA), you should get acquainted because it is extremely powerful. The Acala network is the DeFi hub of the Polkadot ecosystem, which provides a suite of innovative DeFi tools & services. One of the defining features of the Acala network is aUSD, the Acala USD stablecoin.
The Acala network’s aUSD is a decentralized, multi-collateral, crypto-backed stablecoin. Here is the InvArch network’s vision for aUSD in our ecosystem:
- IPT tokens are minted & bonded to the $VARCH token.
- These IPTs can have a value that is backed by $VARCH tokens.
- Users can collateralize their IPT tokens & earn network rewards.
- Collateralized IPTs can be used to mint the aUSD stablecoin.
Polkadot Parachains and Venture Funds Team Up to Launch $250 Million ‘aUSD Ecosystem Fund’
This isn’t just a strong use-case for aUSD in the InvArch ecosystem; this is a supercharged path for mass adoption of the aUSD stablecoin globally. As the number of projects using SIPAnomics (a feature that will extend to all welcoming Parachains, not just InvArch) grows, so does the aUSD economy.
Projects would be able to collateralize their IPTs (backed by $VARCH) & earn interest on their assets while also using them to mint aUSD. This vision provides a consistent stable currency to conduct business transactions and helps keep innovation moving forward.
Check this out; remember the SIPA Protocol Example 1?
- Let’s say that a project consists of IPT0 tokens which represent ownership & governance tokens. Additionally, the project uses separate IPT1 tokens to reward those contributing to its development.
- Rewards for individuals who contribute towards that project aren’t IPT0 because they would presumably need to sell them, which would lower the token’s value & hurt the project.
- IPT1 tokens are minted & backed by $VARCH or even by the IPT0 tokens, giving them value. IPT1 tokens are then collateralized to mint aUSD; this locks up the IPT1 tokens & the $VARCH or IPT0 tokens bonded to them.
- aUSD, backed by a project’s IPT1 tokens, can then be provided to:
1) Provide a stable currency with multi-chain utility.
2) Lock the value of the project’s base token & increase its value.
- The more a user contributes to a project, the more IPT2 tokens they can receive. In this example, IPT2 tokens would act as SIPA tokens. This increases their base salary as they contribute, incentivizing their efforts & providing compensation raises trustlessly.
With the InvArch network, aUSD can become the indisputable stablecoin of choice for the Polkadot ecosystem, help provide the most potent DeFi services to developers, & offer a consistent medium of exchange for all of Web 3.0.
Looking Towards The Future & The Next InvArch EduSeries.
We’ve said it before & we’ll say it again, InvArch is anything but another blockchain project. InvArch reinvents many fundamental concepts found throughout Web 3.0 and takes them to new heights. As a result, new doors of opportunity are opened in abundance!
- Non-fungible tokens? Hello, internationally compliant & fully composable IP Files, Sets, & SubSets.
- Re-fungible tokens? Hello, multi-layered fungible Sub-Assets pegged the same IP Set.
- Proof of Attendance Protocols? Hello, Scalable Incentivized Proof of Attendance protocols.
Next, we will jump right into the future of decentralized funding for IP, dApps, & start-ups with the InvArch EduSeries 5: Supercharging Developers & Empowering Innovation With OCIF. InvArch will tear down financial barriers of entry while reinventing the way web3 fuels new & exciting innovations. How? You’ll have to tune in next time to find out!