IMO Overview
Initial Model Offering: Tokenizing AI Models Onchain
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Initial Model Offering: Tokenizing AI Models Onchain
Last updated
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Open-source AI models are vital for fostering innovation and collaboration. However, sustaining these models financially remains a significant challenge. As a result, the AI industry is currently dominated by closed-source, for-profit companies.
To address this, ORA introduces the Initial Model Offering (IMO), a mechanism that tokenizes AI models onchain. IMOs enable open-source AI model developers to secure funding and build in public, fostering a more collaborative and innovative AI ecosystem.
An Initial Model Offering (IMO) involves the issuance of an ERC-7641 Intrinsic RevShare Token for an AI model to represent its long-term value. By holding IMO tokens, anyone can become a part of the AI model's ecosystem and contribute to its development and sustainability while capturing a percentage of fees incurred by users during inference.
For AI Model Developers: Provides sustainable funding for open-source development.
For Ecosystems: Aligns values and incentives for distribution and ongoing contribution.
For Token Holders: Enables capturing the value of AI models onchain through revenue sharing.
Tokenization: An AI model is tokenized into ERC-7641 tokens.
Value Generation: The AI model generates fees through onchain usage and AI-generated content.
Value Distribution: The token mechanism facilitates the distribution of fees within the ecosystem transparently and proportionally.
Governance: Token holders can assist with model ecosystem development through voting on funding and grants.
An IMO combines two core components:
Verifiable Onchain AI Models
ERC-7641 Intrinsic RevShare Token
To ensure the token mechanics are a closed loop, the model uses verifiable onchain inferences. This is achieved through:
By adopting opML and our AI Oracle, IMOs ensure practicality and performance in running AI models onchain while simultaneously providing a mechanism to capture fees when that model’s outputs are ingested by other smart contracts.
The ERC-7641 Intrinsic RevShare Token standardizes interaction and revenue sharing logic with the AI model. Participants may benefit from mechanisms such as:
Model Usage Fees: Each onchain use of the AI model involves a fee managed through the token mechanism. This fee is distributed proportionally to token holders.
AI-Generated Content Revenue: Outputs generated by the AI model (e.g. NFTs from an image generator model) may carry royalty and mint fees. By using additional standards such as ERC-7007, these fees can also be captured and distributed to token holders.
For questions or contributions to the IMO ecosystem, please contact ORA.
: Leverages fraud proofs to ensure model correctness and overcome the computational limitations of blockchains.
: The practical implementation of opML, enabling AI models to operate onchain through the ORA Network.
ETHDenver Talk:
Sample ERC-7641 Implementation:
ERC-7007:
ERC-7641:
