How rNFTs Work

Once acquired, users can begin to aggregate their digital assets or AI Generated Content (AIGC) by assigning them to an rNFT. They can then monetize that work by using it to train AI or license it for use by others on the Paradox AI platform.

Varied Content: Content assigned to rNFTs can encompass a wide range of types, from images and videos to audio files and text documents.

Metadata Documentation: Each piece of content assigned to an rNFT is accompanied by metadata that details its characteristics, origin, and any other relevant information. This metadata plays a crucial role in defining the properties of the rNFT and ensuring the traceability and authenticity of its components.

Dynamic Management: The rNFT framework allows for the dynamic management of its contents. Creators can add new components to the rNFT over time, reflecting the evolution of their creative projects or responding to market demands. This ability to update and expand the rNFT's content sets rNFTs apart from traditional NFTs.

Monetization

rNFTs offer owners multiple avenues for monetization, leveraging the unique characteristics and flexibility of these digital assets:

Neural Network Training: rNFT holders can upload, generate, authenticate, and label digital assets for Ringfence to use in the training of our neural network. All contributing rNFT holders earn rewards from Ringfence for their collaboration. Licensing: An alternative monetization strategy involves licensing specific components of an rNFT or the entire asset for commercial use. This allows creators to retain ownership of their rNFT while generating revenue through the commercial use of its content, with automated royalties.

Branding and Commercial Use: Creators can also leverage their rNFTs for branding and other commercial purposes. For example, a food photographer could use an rNFT containing their portfolio of work, licensing it to food & beverage companies for commercial use and advertising.

‍Acquisitions: While rNFTs won’t at first be tradeable, users will later be able to trade them on the Ringfence marketplace. Savvy Creators will build rNFTs that generate monthly recurring revenue, which can transfer upon sale. We believe the market will price these rNFTs similar to any other revenue-generating asset.

‍Use Cases

While the technology behind rNFTs seems complex, in practice they are deceptively simple. Below are some exemplary use cases of how rNFTs can be used:

‍Use Case 1: A food photographer uploads the entirety of their portfolio, assigning it to an rNFT. They can then use that to train a custom AI model on Ringfence, creating high-quality derivatives of their works. They can also seamlessly license their work to food and beverage companies to create derivatives for use in advertising, branding, and even video production for advertising.

Use Case 2: A writer uploads their script to Paradox AI and assigns it to an rNFT. They then use AI to generate characters, create a musical score, and design beautiful scenery, assigning these to the rNFT. Then, using the smart contract attached to the rNFT, they can easily license the movie for sale or distribution without a middleman.

Use Case 3: An NFT artist wants to release a new NFT collection of 10,000 profile pictures, and they want to ensure that their holders always have a financial benefit from any intellectual property associated with the collection. The artist uploads key reference materials for the collection, assigning it to an rNFT. The artist then hosts the mint through Paradox AI, ensuring all NFTs are attached to the rNFT. The project owner can then freely license the IP for toys, stories, books, and more all using the rNFT All collection holders are then easily able to track project profit and distributions, building more community transparency and increasing the collection’s value.