ποΈArchitecture Design
$KIP tokens have two functions: firstly to act as a settlements currency within the KIP ecosystem, and secondly to ensure reliability via staking. Because providers β app, model and data providers β are decentralized and frequently anonymous, it is important to have some way for users to know that the creators they interact with can be trusted. KIP implements a tiered creator staking programme to perform this function. An app developer, model trainer or data provider can stake a given amount of $KIP and receive a corresponding NFT trust mark in return. If they then fail to perform their role within the system or attempt to sell intellectual property that is not their own, their stake may be slashed and redistributed to the checkers and voters who identified and reported them. Checkers and voters are rewarded not just with shares from slashed stakes, but also via the KIP ecosystem fund.
A typical interaction would work as follows:
Developer creates a decentralized AI asset (an app, model or dataset) and mints an ERC-3525 SFT token to represent it on-chain.
To prove the credibility of his AI asset he stakes a given quantity of $KIP with the KIP DAO treasury.
In return, the treasury supplies him with a revocable trust mark NFT, letting users know that their interactions with the asset are insured.
Periodically, a Checker Node pings the asset's API endpoint. It checks that a) the asset is live, b) the asset is providing the kind of response expected (for example, text for a text model, images for an image model) and c) the correct price was charged for access.
If the node flags up any problems with the asset, this is reported on-chain, which triggers follow-up checks by other nodes. In the event that these agree that the asset is not functioning correctly, the asset owner risks losing his trust mark and/or a part of his stake.


While the current iteration of KIP Protocol uses The Graphβs indexing system. In the longer term, we will be rolling out independent indexing and validation nodes, also funded via the ecosystem as well as protocol transaction fees.


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