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ERC-7641: Intrinsic RevShare Token

ERC-7641: Intrinsic RevShare Token

Introduction

ERC-7641 is an extension of the standard ERC-20 token, designed to integrate a seamless revenue-sharing mechanism directly into the token's functionality. It allows token holders to claim and redeem a proportional share of a communal revenue pool, enhancing the token's utility and promoting active participation in the ecosystem.

ERC-7641 is a core component of the Initial Model Offering (IMO).

Key Benefits

  • Revenue Sharing for Token Holders: Provides a standardized method for distributing revenue among token holders, rewarding them for their participation and investment.

  • Funding for Projects: Enables any project, including open-source initiatives, to tokenize their revenue streams, fostering sustainable development and community engagement.

  • Flexibility and Fairness: Maintains the essential attributes of ERC-20 tokens while introducing mechanisms for fair revenue distribution and deflationary economics through token burning.

How ERC-7641 Works

1. Revenue Sharing Mechanism

  • Claimable Revenue: Token holders can periodically claim a portion of the revenue pool based on their token holdings at specific snapshots.

  • Snapshot Functionality: Snapshots capture token balances and claimable revenue at certain points in time, ensuring accurate and fair distribution.

  • Proportional Distribution: Revenue between snapshots is distributed proportionally to token holders, with a specified sharing ratio determining the portion allocated for claims.

2. Burning Mechanism

  • Token Burning: Holders can burn their tokens to redeem a proportional share of the revenue pool, contributing to a deflationary model.

  • Redeemable Value: The value redeemed upon burning is calculated based on the holder's share of the total token supply and the total redeemable revenue in the pool.

  • Deflationary Economics: Reduces the total token supply over time, encouraging long-term holding.

ERC-7641 Interfaces

The ERC-7641 standard introduces several interfaces to facilitate its functionality:

Core Interface: IERC7641

Defines the primary functions for revenue sharing and token burning:

  • claimableRevenue(address account, uint256 snapshotId): Calculates the amount of ETH claimable by a token holder at a specific snapshot.

  • claim(uint256 snapshotId): Allows a token holder to claim their share of ETH based on a snapshot.

  • snapshot(): Creates a new snapshot of token balances and claimable revenue, returning a unique snapshot ID.

  • redeemableOnBurn(uint256 amount): Calculates the amount of ETH redeemable upon burning a specified amount of tokens.

  • burn(uint256 amount): Burns a specified amount of tokens and redeems the corresponding share of the revenue pool.

Optional Extension: IERC7641AltRevToken

An optional extension to support revenue sharing with alternative ERC-20 tokens beyond ETH:

  • claimableERC20(address account, uint256 snapshotId, address token): Calculates the amount of a specific ERC-20 token claimable by a holder at a snapshot.

  • redeemableERC20OnBurn(uint256 amount, address token): Calculates the amount of a specific ERC-20 token redeemable upon burning tokens.

Use Cases

Funding Open-Source Projects

ERC-7641 enables open-source projects to tokenize their revenue streams, providing sustainable funding and incentivizing contributions. By distributing Intrinsic RevShare tokens to contributors, projects can reflect involvement and share revenue proportionally.

Initial Model Offering (IMO)

Combining ERC-7641 with the concept of an Initial Model Offering (IMO), open-source developers can conduct fundraising for new AI model development and create ongoing communities for their projects. Token holders benefit from revenue generated by the AI models, fostering a collaborative and sustainable ecosystem.

Additional Resources

PreviousIMO OverviewNextERC-7007: Verifiable AI-Generated Content Token

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