# IP-Tokens

Intellectual Property Tokens ("IP-Tokens" or "IPTs"), pioneered by [Molecule AG](https://www.molecule.xyz/), represent fractional governance rights over the intellectual property (IP) generated. These tokens give holders opportunity to participate directly in the development, decision-making, and future directions of the research.

### **Bootstrapping Ideas with Transaction Volume** <a href="#bootstrapping-ideas-with-transaction-volume" id="bootstrapping-ideas-with-transaction-volume"></a>

Not all valuable ideas begin with a patent. Some start as a simple hypothesis that needs funding for initial validation. The Bio Protocol's launch model allows for these nascent ideas to be tokenized and funded from day one. By launching a token which accrues funding from transaction volume, a continuous stream of revenue can be generated from secondary market trading activity. This innovative model provides the capital needed to fund the earliest stages of research-the experiments that can turn a promising hypothesis into meaningful, patentable intellectual property.

### **Unlocking University IP** <a href="#unlocking-university-ip" id="unlocking-university-ip"></a>

Universities and research institutions are treasure troves of innovation, but their intellectual property often remains locked away in tech transfer offices, difficult to find and even harder to fund. BioDAOs can act as a bridge to these legacy institutions. By partnering with tech transfer offices, BioDAOs can help source promising patents, tokenize them as IP-Tokens, and bring them on-chain. This makes the IP more discoverable and accessible to a global community of funders, researchers, and builders who can help advance the research and bring it to market.

### **How IPTs Work** <a href="#how-ipts-work" id="how-ipts-work"></a>

When you acquire IPTs, you are gaining participatory rights in the IP generated from the research, which includes patents on novel compounds, proprietary screening systems, and potentially even therapeutic methods. However, it's important to note that IPTs do not entitle holders to guaranteed financial returns or revenue sharing from the commercialization of these assets. Instead, IPT holders benefit from the following:

* **Governance Rights:** IPT holders can participate in key decisions related to the development, management, and licensing of the intellectual property. This includes voting on important milestones, strategic partnerships, and the allocation of research funds, allowing the community to have a direct influence on the direction of the project.
* **Access to Exclusive Information:** IPT holders may receive updates and detailed reports on the progress of the research and the development of IP, providing them with a deeper understanding of the project's trajectory and potential.
* **Early Access and Benefits:** Depending on the project's development and partnerships, IPT holders may gain early or preferential access to innovations, collaborations, or future opportunities related to the IP, although this is not guaranteed and varies by project.
* **No Guaranteed Returns:** It's up to the IP owner whether the IPT holders get paid if the IP gets commercialized, and while they could decide to award IPT holders based on the success of the project, they would carefully consider regulatory implications before doing so.

#### **The Role of IPTs in Decentralised Science (DeSci)**: <a href="#the-role-of-ipts-in-decentralised-science-desci" id="the-role-of-ipts-in-decentralised-science-desci"></a>

In the decentralized science (DeSci) ecosystem, IPTs serve as a vital tool for enabling broader community involvement in scientific research. By tokenizing intellectual property, IPTs democratize access to and control over scientific advancements, fostering a transparent, collaborative environment where the community can contribute to and influence the development of cutting-edge therapies.

{% hint style="info" %}
Read more about IP-Tokens and the Proof-of-Invention Protocol in the Molecule [Docs](https://docs.molecule.to/documentation/proof-of-invention-poi/intro-to-proof-of-invention-poi).
{% endhint %}


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