Introducing DIA ARTs: Autonomous Rights Tokens

How DIA leverages NFTs to enable distributed data rights management and enable secondary markets for data.

5 minutes read
Introducing DIA ARTs: Autonomous Rights Tokens

The DeFi ecosystem is dependent on the reliable delivery of accurate data through oracles. While the infrastructure to deliver data is maturing, the need to manage and track rights for the usage of data by the originators has not been addressed. NFTs provide the possibility to decentralise the management and monetisation as well as create a liquid secondary market for data and the attached rights.

The Data Rights Management Problem

The current infrastructure for data provision in the DeFi ecosystem has organically grown around the need for data by dApps. As the market grows, an essential building block for a maturing and increasingly regulated ecosystem will be the ability to track and audit which data is used by whom, from which sources, under which rights. As this information is currently not provided, the development of standards and best practices around the usage of data are limited and users of the data operate with unknown risks.

Autonomous Rights Tokens (ART)

The DIA Association establishes a new system to track and manage data usage rights that leverages the benefits of decentralisation to create an autonomous market infrastructure and tracking system using Autonomous Rights Tokens, or ‘ARTs ‘ for short.

  • ARTs allow the rights to be associated with the smart contracts using the data and making them a prerequisite for the usage of the data.
  • ARTs can be minted in a decentralised manner, opening access to anyone and removing the need for centralised administration.
  • ARTs can be traded on any secondary market that enables trading financial primitives for data rights and the creation of incentive systems to create datasets.
Autonomous Rights Tokens manage the provision and monetisation of data rights between users and sources.
Autonomous Rights Tokens manage the provision and monetisation of data rights between users and sources.

DIA’s ART Architecture

The ART architecture has been designed with several goals in mind:

  1. Enable trading on secondary markets to improve and decentralise access to rights.
  2. Incentivise the sourcing of new data sets and provide additional token-economic incentives for DIA token holders.

ARTs for dApps (‘dARTs’)

dARTs represent the right to use a dataset under certain conditions (i.e. type of usage, time etc.). They can be minted through an interface provided by DIA by defining the dataset and providing a minting fee to the dART fee pool. The generation of dARTs can also be integrated through smart contract interactions into existing or future web3 applications. dARTs can be freely traded on NFT marketplaces like OpenSea.

ARTs for Data Sources (‘sARTs’)

sARTs represent a data source and the usage rights associated with the data provided by that source. Each sART is unique and each data source only has one sART. Each sART is linked to the dART, referencing the respective usage rights. sART are eligible to claim fees generated through the minting of a dART minting.

Next steps

Further details around the mechanics of the Fee Pools, the Launch Genesis and the minting process will be released in an upcoming announcement.

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