Preface

In this era of rapid digital and intelligent development, Artificial Intelligence (AI) technology is becoming an important force to drive innovation in various industries. With the popularization of AI technology, how to effectively manage and monetize AI assets has become an urgent problem to be solved. KIP Protocol, as a decentralized AI framework, aims to provide AI application developers, model makers, and data owners with the ability to deploy, connect and monetize their AI assets in Web3.

What is KIP Protocol?

KIP Protocol is a Web3 underlying protocol focused on AI, founded by senior AI doctors and experts in the technical business field. It is a decentralized AI framework and the world's first decentralized RAG network, providing AI app developers, model creators, and data owners with the ability to deploy, connect, and monetize their AI assets in Web3. It solves the important but overlooked problems faced by AI developers in building decentralized AI products and adopts SFT to achieve digital rights and tokenization of AI assets, building a virtuous cycle between data owners, model designers, and AI app developers. On the one hand, it allows participants to retain full digital ownership and easily interact with other AI assets to generate revenue without losing access control.

Project Background

KIP Protocol is supported by Animoca and is the official AI partner of Animoca's Open Campus. It has also signed agreements with several other well-known clients, including top Web3 venture capital firms, government research institutions, and universities.

As one of the winning projects of the Chainlink hackathon, KIP Protocol's underlying technology has been commercially validated since 2022, with KIP's clients including government, non-governmental organizations, universities, and large Web3 institutions. KIP's technology has also been applied to innovative B2C platforms, launching tokenized AI Agents, putting KIP at the forefront of decentralized AI (DeAI) development.

Ecosystem

Crowdfunding Pool

Under this mechanism, the creator of intellectual assets provides funding for their work through the presale of associated tokens, making it more suitable for creators seeking a large number of small-scale investors.

1. After minting the application token, the application owner will establish a revenue distribution agreement, specifying that the $KIP revenue from the application will go into a revenue pool (Uniswap v2 style liquidity pool) to purchase its own tokens - referred to as $MEME here for readability - and withdraw it from the pool into the owner's wallet.
2. Created their own fundraising token $MEME and injected seed into the income pool by injecting $KIP and $MEME liquidity (amount determined by the owner).
3. Sell the remaining $MEME to supporters OTC (price determined by the owner).
4. The application goes live, and the $KIP revenue is used to buy $MEME from the pool, thereby boosting the price of $MEME.
5. Crowdfunders can swap their $MEME for $KIP or sell it on the secondary market.

This financing mechanism is deliberately designed to be relatively speculative, because in the current environment, the only way for independent creators to obtain the same level of risk investment is through speculative financing.

Tokenizing ownership of knowledge assets into SFT

• NFT and SFT as ownership tokens: each knowledge asset is represented as a unique SFT, proving the owner's rights to its knowledge and data.
• Monetization and Exchange: Just as Friendtech allows users to access chat rooms through token gates, KIP contracts allow owners to access their models, applications, and datasets through token gates and automatically charge fees when accessed by users. Owners can also monetize their knowledge assets by buying, selling, or trading their NFTs and SFTs.
• New funding sources: NFT/SFT ownership enables users to sell the rights to various knowledge assets, opening up new sources of income and providing funding for future business activities by selling shares of future revenue. Any investor who purchases shares of the SFT or NFT subsidiary pool will automatically receive a portion of the payment they receive, which can be used for crowdfunding efforts, rewarding contributors to collaborative projects, or simply speculating on the future value of the assets.

The integration of NFTs, SFTs, and decentralized knowledge assets provides a new way to handle knowledge ownership, incentives, and exchange, enabling users to control their digital assets and promote collaboration in knowledge-centered ecosystems.

Token Economics

Token distribution is designed to balance ecosystem development, institutional support, and community empowerment, with each allocation reflecting the KIP protocol's key priorities: fostering innovation, rewarding contributors, and ensuring long-term sustainability.

• Token name: KIP
• Standard: ERC-20
• Network: Ethereum Mainnet
• Total supply: 10,000,000,000 (fixed)

Attribution Schedule

Our cash-out schedule ensures that $KIP tokens are strategically unlocked over time to maintain market stability and incentivize long-term contributions.

Token Application

KIP token is the fuel of the KIP protocol ecosystem, with three core functions:

1. Trading currency
   $KIP facilitates all economic activities within the ecosystem, providing seamless AI payments for users of Web3 AI applications deployed through KIP contracts.

1. staking mechanism

• Reputation Score: Establish and maintain reputation within the ecosystem by staking $KIP.
• Mint Artificial Intelligence Assets: Stake $KIP to mint tradable intellectual assets and AI resources.

1. governance rights
   $KIP holders can participate in the KIP DAO, influencing key decisions on protocol upgrades, funding, and ecosystem strategy decisions.

Future Jump Battle

The KIP Protocol still faces many challenges:

• Technical Complexity: Although KIP Protocol aims to simplify the management of AI assets, it may still be difficult for ordinary users to understand and use this system.
• Ecological construction: To truly form a network effect, KIP Protocol needs to attract enough high-quality participants, which is a long process.
• Competing with existing giants: Changing the established industry landscape is not easy, KIP Protocol needs to demonstrate overwhelming advantages.

KIP still needs to compete with traditional AI platforms in terms of user experience. Platforms like Coze and Dify may gain widespread adoption in the short term due to their user-friendly interfaces. It will be a key challenge to provide a similarly smooth user experience while maintaining the advantage of decentralization.

Summary

KIP Protocol is a decentralized AI framework that provides a platform for AI application developers, model makers, and data owners to deploy, connect, and monetize AI assets in the Web3 environment. As the world's first decentralized RAG network, KIP Protocol addresses the challenges faced by AI developers in building decentralized products and adopts SFT to achieve digital rights and asset tokenization, creating a virtuous cycle ecosystem. Despite facing challenges such as technical complexity, ecosystem construction, and competition with existing giants, KIP Protocol is working hard to overcome these challenges to drive the development of the decentralized AI field.