Problems

1. Discovery problem: how do apps or end-users know how much they can claim from all descendants?
2. Gas-efficient claiming problem: how to minimize claiming gas cost?

Solutions

1. Discovery problem - How do apps or end-users know how much they can claim from all descendants?

One IP can have:

• Infinite number of children
• A finite number of ancestors - maximum 1024 currently

Because of the two points mentioned above traversing down the graph is limitless but traversing up the graph is doable. To solve the discovery problem we make use of the 2nd point.

• Current solution: offchain database

2. Gas-efficient claiming problem: how to minimize claiming gas cost?

There can be at least two types of claiming:

• Level-to-Level claiming
  • Each IP pulls money from its derivatives and the money “travels” up the derivative chain without any awareness of the whole tree
  • (see image below) - If a royalty token holder of IP1 wants to claim from IP4 there will be as many txs as there are derivatives between them plus one more between vault and RT holder- in this case 3+1 transfers
    • Does not require any precompile calculation
• Full-tree awareness claiming
  • Knowing all the existing ancestor nodes and distribution rules it’s possible to know how much each node can claim from a given descendant.
  • (see image below) - If a royalty token holder of IP1 wants to claim from IP4 there will be only 2 transfers (constant)
    • Requires precompile calculation