Attribution is a financial primitive. Every AI model is a composite of data, code, and compute contributions, but the value flow stops at the final model owner. This creates a massive misalignment between contributors and value capture, stifling open collaboration.
The Inevitable Protocol for AI Model Attribution Splits
The current AI value chain is a legal and economic black box. We argue that a composable, on-chain standard for automating attribution splits—akin to ERC-7641 for tokenized baskets—is the only scalable solution to compensate model trainers, data providers, and prompters.
Introduction
AI model training is a multi-stakeholder process, but current attribution and compensation mechanisms are broken.
The solution is on-chain splits. Platforms like Ethereum and Solana provide the settlement layer for transparent, automated revenue sharing. This mirrors the creator economy logic of platforms like Superfluid or Sablier, but applied to model weights instead of content.
Protocols win by default. Just as Uniswap automated market-making, a dedicated attribution protocol will automate model royalties. The technical primitives—oracles (Chainlink), identity (Worldcoin), and modular DAOs (Syndicate)—already exist and are waiting for composition.
The Core Argument
AI model training creates a multi-party value chain that requires a programmable settlement layer for attribution.
AI models are composite assets built from data, compute, and algorithms. The current web2 stack treats this as a single corporate asset, but the value flow is inherently multi-party. A protocol like EigenLayer for AI is inevitable to track provenance and automate revenue splits.
Attribution is a coordination problem that markets solve better than corporations. The oracle problem for AI is verifying contributions, not price feeds. Systems like Chainlink Functions or Witness Chain demonstrate the template for external verification, applied to training data and compute proofs.
The protocol is the new API. Instead of bespoke licensing deals, a standard like ERC-7641 for revenue splits enables composability. This creates a liquidity layer for AI contributions, similar to how Uniswap created one for tokens, allowing capital to flow to the most verifiably valuable inputs.
The Fracturing AI Value Chain
As AI models become composable, the value chain fragments across data, compute, and inference providers, creating a royalty and attribution nightmare.
The Attribution Black Box
Current AI pipelines are opaque. When a final model uses components from Hugging Face, fine-tuned weights from Replicate, and runs on Lambda Labs, tracking provenance for revenue splits is impossible. This stifles open-source collaboration.
- Problem: No universal ledger for model lineage
- Consequence: Composability kills monetization, centralizing value
The On-Chain Royalty Standard
A protocol that acts as a cryptographic notary for AI workflows. Every component—dataset, pre-trained model, fine-tuning job—gets a verifiable, on-chain fingerprint. Smart contracts automate micro-royalty streams upon inference.
- Solution: Immutable provenance ledger (like Arweave for data)
- Mechanism: Programmable splits via smart contracts
The New AI Business Model
This enables per-inference monetization for model builders, not just API providers. A fine-tuner of Llama 3 can earn a continuous revenue share from every downstream application, creating a vibrant secondary market for model components.
- Outcome: Shift from licensing to usage-based revenue
- Analogy: Uniswap-style fee switch for AI model contributors
The Interoperability Mandate
The protocol must be chain-agnostic, sitting atop Ethereum, Solana, and Cosmos appchains. It uses zero-knowledge proofs (like zkSync) to attest to off-chain compute work without revealing IP, and cross-chain messaging (LayerZero, Wormhole) to settle payments.
- Architecture: Settlement layer + attestation layer
- Critical Tech: ZKPs for privacy, CCIP for liquidity
The Oracle Problem for AI
How does the chain know an inference happened? Requires a decentralized oracle network (Chainlink Functions, Pyth) to verify execution logs from AWS Bedrock, Google Vertex AI, or private clusters. This is the hardest security challenge.
- Risk: Centralized oracle becomes a single point of failure
- Mitigation: Multi-sig attestation committees + slashing
The First-Mover Landscape
Early players are carving niches. Bittensor focuses on peer-to-peer compute incentives. Ritual is building an infernet for on-chain verifiability. Gensyn tackles distributed compute proof. The winner will be the protocol that unifies attribution, not just compute.
- Competitors: Bittensor (compute), Ritual (inference), Gensyn (training)
- Gap: A unified attribution layer remains open
The Attribution Stakeholder Matrix
Evaluating on-chain mechanisms for splitting AI model usage attribution and revenue among contributors.
| Feature / Metric | Static Registry (e.g., EIP-7007) | Dynamic NFT (e.g., Ocean Data NFTs) | Intent-Based Settlement (e.g., UniswapX) |
|---|---|---|---|
Attribution Granularity | Per-model hash | Per-dataset/algorithm | Per-inference transaction |
Settlement Finality | Off-chain / Manual | On-chain mint/royalty | Atomic on-chain swap |
Royalty Enforcement | Weak (opt-in) | Strong (on-chain) | Conditional (intent rules) |
Stakeholder Complexity | ≤ 10 addresses | Unlimited (fractional NFTs) | Dynamic per-transaction |
Fee Overhead | 0% (gas only) | 2-10% platform fee | 0.3-0.8% solver fee |
Integration Complexity | Low (read-only) | Medium (minting logic) | High (intent infrastructure) |
Supports Real-Time Splits | |||
Example Entity | OpenAI Model Registry | Bittensor, Hugging Face | Across Protocol, Anoma |
Blueprint for an AI Attribution Standard
A functional attribution standard requires a minimal, on-chain protocol for tracking and splitting value based on model lineage.
The core is a registry. The standard's foundation is a canonical, on-chain registry mapping model identifiers (hashes) to a split contract address. This creates a single source of truth for attribution logic, analogous to an ERC-20 token contract defining its own transfer rules.
Attribution is a payment split. The protocol must define a standard interface for a split contract, similar to EIP-2981 for NFT royalties. This contract receives inference fees or downstream revenue and programmatically distributes them to contributors based on immutable, on-chain weights.
Weights require consensus, not perfection. Determining exact contribution percentages is a social/legal problem. The protocol's role is to enforce agreed-upon splits, not to calculate them. Oracles like Chainlink or DAOs can be used to resolve and update weights for contentious lineages.
Evidence: On-chain enforcement works. The success of EIP-2981 proves that simple, standardized royalty hooks create enforceable economic flows. For AI, a similar standard would turn attribution from a legal footnote into a programmable revenue stream.
Early Movers & Adjacent Protocols
Protocols building the rails for verifiable AI provenance and value distribution are emerging as critical infrastructure.
The Problem: Opaque Training Data Provenance
Current AI models are black boxes. There's no on-chain record of which data contributed to a model's value, making attribution splits impossible.
- Billions in training data value is unaccounted for.
- Zero technical mechanism for creators to claim ownership or royalties.
- Creates legal and ethical risk for model deployers.
The Solution: On-Chain Attribution Ledgers
Protocols like Story Protocol and Alethea AI are creating immutable registries that link AI outputs to their constituent inputs.
- Hash-based anchoring of training data and model checkpoints.
- Programmable IP layers enable automatic royalty splits.
- Turns data contributions into composable, financializable assets.
The Problem: Static, Manual Royalty Enforcement
Even if attribution is proven, enforcing splits across a fragmented AI stack (training, fine-tuning, inference) is a manual, off-chain nightmare.
- No standard for value flow between data providers, model trainers, and app developers.
- High friction kills micro-transactions and real-time payments.
- Relies on centralized intermediaries and trust.
The Solution: Autonomous Smart Contract Splits
Embedding split logic directly into model usage via smart contracts. Inspired by EIP-2981 (NFT royalties) and Superfluid's streaming payments.
- Pre-defined logic executes payments on every inference call or model query.
- Real-time streaming of revenue to data contributors.
- Enables per-query micropayments at scale.
The Adjacent Protocol: Decentralized Compute Markets
Platforms like Akash and Render Network demonstrate the template: verifiable work, on-chain settlement, and global resource markets.
- Provenance via Proof-of-Compute: Cryptographic proof links payment to a specific job.
- Direct analogy: Swap 'GPU cycles' for 'training data contributions'.
- Existing infrastructure for bidding, scheduling, and payment can be repurposed.
The Killer App: Attribution-Backed Financialization
Once attribution is on-chain and cash-flowing, it becomes collateral. This is the TrueFi or Maple Finance moment for AI.
- Data contributors can borrow against future royalty streams.
- Model trainers can securitize and sell portions of their revenue share.
- Creates a liquid secondary market for AI model equity.
The Centralized Counter-Argument (And Why It Fails)
Centralized platforms cannot credibly commit to long-term, transparent revenue splits, creating an inherent trust deficit for AI model creators.
Centralized platforms cannot credibly commit. A corporate entity can unilaterally change terms, as seen with API pricing shifts from OpenAI or Google. This creates an irreducible counterparty risk that a smart contract eliminates by encoding rules into immutable logic.
The incentive structure is misaligned. A platform's goal is to maximize its own profit and control, not the creator's long-term value. This leads to platform rent-seeking and data siloing, whereas a protocol like EigenLayer for restaking or a marketplace like Ocean Protocol demonstrates neutral, composable infrastructure.
Legal contracts are insufficient. They are slow, expensive to enforce, and lack granular, automated execution. A programmable revenue split on-chain, akin to Superfluid's streaming payments, executes trustlessly across borders and in real-time, which a corporate ledger cannot replicate.
Evidence: The migration of creators from Web2 to platforms like Mirror.xyz and Farcaster demonstrates demand for ownership and portability that centralized models inherently oppose, validating the market need for credibly neutral infrastructure.
Execution Risks & Bear Case
Tokenizing AI model attribution is a powerful concept, but its path is littered with technical and economic landmines.
The Oracle Problem on Steroids
Attribution requires off-chain verification of AI model usage, a task far more complex than price feeds. The system is only as reliable as its weakest oracle, creating a single point of failure for all downstream payments.
- Provenance Proofs require verifying a model's unique fingerprint in a generated output, a computationally intensive and potentially gameable process.
- Sybil Attacks are trivial; an attacker can spawn thousands of fake inference requests to dilute attribution payouts or manipulate the token.
- Data Source: Reliance on centralized API providers (e.g., OpenAI, Anthropic) for usage logs creates centralization and censorship risks.
The Liquidity Death Spiral
Attribution tokens derive value from a perpetual, high-velocity revenue stream. Any interruption in model usage or payout disputes instantly collapses the token's fundamental valuation.
- Cash Flow Volatility: AI model popularity is fickle; a new SOTA model can render yesterday's champion obsolete, crashing its attribution token.
- Ponzi Dynamics: Early contributors are paid from later users' fees, creating a structure that requires perpetual growth to avoid collapse.
- Settlement Latency: Real-time micro-payments for inference are impossible on L1s; reliance on L2s or payment channels adds complexity and withdrawal risk.
Legal Precedents & Regulatory Arbitrage
Tokenizing intellectual property rights invites scrutiny from global regulators. The protocol becomes a legal battleground, not a technical one.
- Security Classification: If payouts are deemed passive income from a common enterprise, the attribution token is a security (SEC).
- Jurisdictional Hell: Model creators, users, and token holders span jurisdictions with conflicting IP and financial laws (e.g., EU AI Act, US Copyright Office).
- Enforcement Impossibility: On-chain smart contracts cannot compel off-chain legal compliance, making the system reliant on goodwill.
The Composability Illusion
While DeFi legos allow money to flow, AI attribution tokens lack the fungibility and standardization needed for true composability with protocols like Uniswap, Aave, or EigenLayer.
- Non-Fungible Cash Flows: Each token's revenue stream is unique, making pooled liquidity risky and valuation models inconsistent.
- Oracle Dependency Cascade: Any DeFi primitive built on top inherits and amplifies the underlying oracle risk.
- MEV Exploitation: The predictable timing of attribution payouts creates prime opportunities for maximal extractable value, siphoning value from contributors.
The 24-Month Outlook
A universal protocol for AI model attribution splits becomes the mandatory settlement layer for commercial AI.
A universal attribution protocol emerges as the only viable solution to the model provenance crisis. The current patchwork of custom licensing and opaque training data logs creates legal and financial friction that stifles commercial deployment. A standard like OpenAI's Model Spec or Hugging Face's model cards will be formalized on-chain, but the settlement layer is missing.
The winning design is a non-custodial splitter. This protocol will function like a Squads multisig for revenue, automatically distributing micropayments to data contributors, model trainers, and compute providers based on verifiable, on-chain attestations of usage. It outcompetes centralized escrow by eliminating counterparty risk and enabling composable financialization of model royalties.
Adoption is driven by enterprise, not crypto natives. The initial catalyst is a major AI lab like Anthropic or Mistral AI integrating the protocol to transparently compensate data partners, turning a compliance cost into a competitive moat. This creates a network effect for verifiable AI, forcing all commercial models to adopt the standard for market access.
Evidence: The infrastructure is already being built. Projects like EigenLayer AVSs for attestation and Hyperliquid's intent-based order flow demonstrate the primitives for decentralized verification and automated settlement. The 24-month timeline is set by the maturation of these components, not by AI industry willingness.
Key Takeaways for Builders
Building the on-chain revenue split layer for AI requires solving for atomic composability, trustless verification, and multi-party coordination at scale.
The Atomic Settlement Problem
Off-chain attribution deals are manual, slow, and prone to disputes. On-chain execution requires atomic settlement to prevent leakage and ensure all parties are paid simultaneously upon model usage.
- Guaranteed Finality: Payment to data providers, model trainers, and IP holders settles in the same state transition.
- Eliminates Counterparty Risk: No need to trust a central escrow; smart contract logic enforces the split.
The Verifiable Compute Dilemma
How do you prove a specific AI model, trained on specific data, was used for a specific inference task? Raw on-chain computation is prohibitively expensive.
- Leverage ZK Proofs: Use projects like Risc Zero or EZKL to generate succinct proofs of model execution.
- Anchor to Oracles: Use Chainlink Functions or Pyth to bring off-chain API call results on-chain verifiably.
The Multi-Party Coordination Nightmare
A modern model may have dozens of contributors (data labelers, pre-trained weights, open-source libraries). Managing dynamic, granular splits is a governance and technical quagmire.
- Composable Splits Standard: Build on ERC-7007 (AI Agents) or create a new standard for nested, programmable revenue trees.
- Automate with Account Abstraction: Use Safe{Wallet} modules or Biconomy for gasless, batched payments to thousands of recipients.
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