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the-creator-economy-web2-vs-web3
Blog

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
THE ATTRIBUTION PROBLEM

Introduction

AI model training is a multi-stakeholder process, but current attribution and compensation mechanisms are broken.

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 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.

thesis-statement
THE VALUE FLOW

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.

PROTOCOL ARCHITECTURE COMPARISON

The Attribution Stakeholder Matrix

Evaluating on-chain mechanisms for splitting AI model usage attribution and revenue among contributors.

Feature / MetricStatic 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

deep-dive
THE PROTOCOL

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.

protocol-spotlight
THE ATTRIBUTION STACK

Early Movers & Adjacent Protocols

Protocols building the rails for verifiable AI provenance and value distribution are emerging as critical infrastructure.

01

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.
0%
On-Chain Provenance
$B+
Unattributed Value
02

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.
Immutable
Data Record
Composable
IP Assets
03

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.
High
Enforcement Friction
Off-Chain
Settlement
04

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.
Automatic
Payment Execution
Real-Time
Value Streams
05

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.
Verifiable
Work Proofs
Global
Resource Market
06

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.
Collateral
Future Cash Flows
Liquid
Secondary Market
counter-argument
THE INCENTIVE MISMATCH

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.

risk-analysis
THE ATTRIBUTION TRAP

Execution Risks & Bear Case

Tokenizing AI model attribution is a powerful concept, but its path is littered with technical and economic landmines.

01

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.
>99%
Off-Chain Reliance
~$0
Cost to Spoof
02

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.
T+7 Days
Payout Lag
-90%
TVL Risk
03

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.
3+
Agencies Involved
∞
Legal Liability
04

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.
0
Standardized Yield
High
MEV Surface
future-outlook
THE STANDARD

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.

takeaways
ARCHITECTING ATTRIBUTION ECONOMIES

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.

01

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.
~0ms
Settlement Lag
100%
Uptime
02

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.
>99%
Proof Accuracy
-90%
Gas Cost vs. Full Compute
03

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.
Unlimited
Payee Scale
<$0.01
Cost per Split Tx
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Why AI Needs an ERC-7641 for Attribution Splits | ChainScore Blog