Discover DEIP, a decentralized infrastructure for the creative economy

This article was written in partnership with DEIP (read more)

Fostering innovation through blockchain

In 2010, the economy of creation and innovation was born $2.2 trillion of profits and employees More than 30 million people. According to a Deloitte report, published in June 2021, it is likely that grow by 40% Over the next ten years, to become one of the main drivers of the global economy.

Despite the growth of the sector and its increasing potential, the creative economy is still based on the rules, mechanisms and rules that govern the global economy. which constrains him in his progress. This is where blockchain comes in, as its innovative technology can enable new business models to emerge.

With the blockchain, it is now possible Reinventing the Economy, in order to put the Creator at the heart of the economic system. You’ll be able to capture and pass on the value you create simply, instantly, and securely. This is called the economy “Creative Economy” It redefines the way millions of creators around the world create, collaborate, and invest in new inventions, technologies, artwork, and other types of intangible products.

Anyway, this is the observation and task entrusted to the Collective Intelligence Labs, a group of architects, researchers, developers and designers Blockchain Specialist. Founded in 2015, this startup was born “With ambition to help realize humanity’s potential” Using collective intelligence techniques.

DEIP Creator Economy Protocol logo Source: DEIP website

In 2018, Collective Intelligence Labs launched the DEIP project. Her ambition is to build This decentralized infrastructure, based on the blockchainWhat the creative economy needs to explode. Since its launch, DEIP . has become The first web protocol 3.0 In the world of coding high-value intangible assets, such as intellectual property.

To learn more, find the DEIP project worksheet

DEIP for Creative Economy

DEIP project aims to build decentralized infrastructure For the creative economy: Creative Economy Protocol » . Provides Web3.0 applications and tools for the entire industry, and “Enabling the Transition from the Creative Economy to the Creative Economy”.

Content creators will have access to a very user-friendly platform To develop their applications directly on Web3.0. They will have two interfaces, one without code and one with some code. This is what we can compare with the WordPress of Web3.0.

Ultimately, DEIP will be a multi-threading protocol designed specifically for creators by enabling Innovative project development Live on Web3 and coding (as F-NFT) for the patent associated with this project.

Encoding assets by NFTs

The intangible assets that the creators envisioned It must be implemented on DEIP In such a way that he can deal with them, without damaging or changing their properties. As such, non-fungible tokens (NFTs) fulfill the role perfectly. Each creation is unique, correspond by definition for the intrinsic concept of NFTs.

DEIP plans to exploit the concept of irreplaceable tokens a little more deeply, division and encoding All of the assets to be produced by the creators. In other words, each NFT can thus be blown up to a certain number of pieces, They are called F-NFTsand distribute it to several different individuals.

NFT . implementation

Example of F-NFT implementation on the Ethereum network Source: Digital Economy Protocol White Paper from DEIP Creator

The name F-NFT comes from contraction Non-fungal hashed code “, Means Split token is irreplaceable. Logically, F-NFT can be imagined as Combination of NFT and ERC-20. By the way, on the Ethereum network, some protocols actually combine ERC-721 and ERC-20 operations.

A feature of F-NFTs is the price definition system. Once a part of the asset is sold on the DEIP network, the sale price is It will determine the true current price of the entire asset.

Governance through F-NFTs

The Creative Economy Protocol DEIP makes it possible to encode an intangible origin (or a group of several). Thus, it will be possible to own part of the asset, which is F-NFT and Collectively share managed. By dividing and tokenizing the ownership of intangible assets, DEIP opens the door for different economic modelsand decentralized finance and governance.

Intangible assets converted into tokens generate income, and this income mostly comes from Selling copyrights to third parties. Since it is implemented directly in the creator economy protocol, it is possible Equity distribution automation Among the relevant F-NFT asset holders.

Furthermore, for each royalty distribution transaction, a portion of the DEIP network is retained and thus retained distributed in the form of rewards for liquidity and yield cultivation protocols, which we will discuss later in this article. This distribution model is called automated royalty distribution.

Decentralized finance at the service of creators

For beginners or creatives who are not yet recognized, getting funding is not easy. On the contrary, traditional banks are reluctant to give them loans. To allow creators to access funds without intermediaries, DEIP . offers The concept of decentralized banking Providing diversified financial services tailored to the creative economy.

To motivate investors to provide liquidity, DEIP is rolling out a liquidity protocol called Dynamic Liquidity Protocol “. In short, it is possible To borrow dX stablecoins (dUSD, dEUR, etc.) for the protocol vs. F-NFT Lock in a particular smart contract (this is called a Vault).

Dynamic Fluidity Protocol

How does the dynamic liquidity protocol work – Source: DEIP Technical Documents

So this F-NFT locked serves of guarantees. For safety, its value should be at least three times higher to the size of the borrower dx. However, this may change over time depending on the value of the underlying intangible asset. As explained above, it is the price of the last transaction made in the secondary market for the same F-NFT that determines its current value.

If the Borrower wishes to withdraw its F-NFT from the Protocol, it will therefore have to Returns the total amount of dX borrowed start, With extra attention. It is then evenly distributed across the ecosystem bins (Ecosystem Boxes) and for liquidity providers, which we will discuss later in this article.

If you want more information, find the technical document of the DEIP project

In the middle of the protocol, the symbol DEIP

By definition, being a blockchain-based protocol, Creative Economy Protocol It requires financial tools to attract and reward users. This is the role of its original code, DEIP. It has three main functions and we will explain them in detail below.

Benefit role:

DEIP code is the original currency used as a means of payment In any financial transaction (such as payment of transaction fees, implementation of smart contracts, etc.)

Verdict:

Due to the decentralized nature of the protocol, DEIP is not governed by a single entity. Therefore, independent individuals are needed to participate in the maintenance, development, and security of the network and protocol. So the first turn of the DEIP token is To reward these people of the work they provide.

The rule of the protocol is regulated in the form of advice. When it was created, it had 12 seats, but 3 were added each year, until it reached the final number of 30. In order to have a seat, Just bet more DEIP As one of the people who make up the blackboard.

Staking and Farming Yield:

The creative economy sector is divided into several categories. For example, in the technology category, we can find the title “Biotechnology”, “Nanotechnology” or “Green Technology”. In addition, all F-NFTs include metadata, including this information. The success of the primary asset (and thus the success of the project) It will result in the success of the entire associated subclass.

Each participant has the opportunity to bet on a certain category if he believes in the possibility of its growth. To do this is enough To share their DEIP codes On a specific F-NFT (or a specific project) in the protocol.

At the same time, the board members also lead what is known as Ecosystem Boxes (or ecosystem box). They decide how to allocate capital in different projects up to 80%. The distribution of the remaining 20% ​​depends on the distribution for the whole community.

Thus, each participant has the possibility to participate in DEIP tokens in a class in order to increase the number of funds allocated by the Ecosystem Fund for that specific class of F-NFT. Based on the performance of the council and the community, Capital allocation may change.

Conclusion

When it was launched in 2018, DEIP . became The first web 3.0 infrastructure View encoding of intangible assets such as intellectual property. The protocol would like to refocus the economy around creators, allowing them to; first of Develop their innovative project Directly on the Web3 decentralized infrastructure, and then To access resourcesFinancing and appearance.

To do this, DEIP facilitates the flow of rewards to content creators through Shares of its original code, DEIP. It also rewards investors who believe in the project, its technology, or the industry.

this year, The company raised $2 million To boost the development of its platform, which will eventually allow engineers or business leaders to create applications faster than any other solution out there. A portion of the money raised will be used for the launch Portal Builderwhich aims to facilitate the development of 1,000 new Web 3.0 projects using DEIP technology.

Newsletter 🍞

Get your cryptocurrency news feed every Sunday 👌 and that’s it.

This is a sponsored and paid article. Cryptoast has previously researched the products or services displayed on this page, but cannot be held responsible, directly or indirectly, for any damage or loss resulting from the use of a good or service highlighted in this article. Investments related to crypto assets are of a risky nature and readers should do their own research before taking any action and invest only within their financial capabilities. This article does not constitute investment advice.

About the author: Lilian Aliaga

Twitter- soothsayerdataTwitter- soothsayerdata

Freelance writer located between Paris and Toulouse. I want to share my passion for the cryptocurrency world with as many people as possible. I am also interested in technical analysis and trading.
All articles written by Lilian Aliaga.

Leave a Comment