> For the complete documentation index, see [llms.txt](https://dominiumxyz.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dominiumxyz.gitbook.io/docs/learn/concepts.md).

# Concepts

Core protocol primitives and how they connect.

Understanding the building blocks of Dominium

***

{% hint style="warning" %}
**Under construction.** Dominium is currently in development.

These docs describe our vision and planned functionality.

Follow [@dominiumxyz](https://twitter.com/dominiumxyz) for official announcements.
{% endhint %}

***

## Overview

Dominium's protocol is built on interconnected concepts that work together to enable programmable IP licensing. This page explains each component.

```
                    ┌─────────────────┐
                    │    IP Asset     │
                    │   (ERC-721R)    │
                    └────────┬────────┘
                             │
              ┌──────────────┼──────────────┐
              │              │              │
              ▼              ▼              ▼
       ┌──────────┐   ┌──────────┐   ┌──────────┐
       │ License  │   │ Staking  │   │   TEE    │
       │ Factory  │   │ Contract │   │ Enclave  │
       └──────────┘   └──────────┘   └──────────┘
```

***

## IP Asset

The fundamental unit in Dominium. An IP Asset represents any intellectual property registered on the protocol.

### What is an IP Asset?

When you register your IP, the protocol mints an ERC-721R NFT that represents your ownership and contains all licensing terms. Think of it as a programmable container that holds:

* Proof of ownership
* Reference to the actual content
* Rules for how others can use it
* Payment configurations

### IP Asset Structure

```solidity
struct IPAsset {
    uint256 tokenId;           // Unique identifier
    address owner;             // Current owner
    bytes32 contentHash;       // IPFS CID of the IP content
    IPType ipType;             // Category (character, music, patent, etc.)
    VerificationStatus status; // Self-attested, verified, or registry-confirmed
    LicenseTerms terms;        // Pricing, restrictions, royalties
    uint256 registeredAt;      // Timestamp
}
```

### Supported IP Types

* Characters and artwork
* Music and audio
* Patents and trademarks
* Datasets and databases
* Written content
* Software and code

### Ownership & Transfers

IP Assets are standard ERC-721R tokens, meaning ownership can be transferred or sold. Existing licenses remain valid even after transfer—the new owner receives future licensing revenue.

***

## License Factory

The engine that powers IP licensing on Dominium.

### What is the License Factory?

The License Factory is the core smart contract responsible for minting IP Assets and generating licenses. When someone wants to use registered IP, the License Factory creates a license NFT that proves their rights.

### Core Functions

```solidity
function registerIP(...) external returns (uint256 tokenId);
function mintLicense(...) external payable returns (uint256 licenseId);
function revokeLicense(...) external;
function isValidLicense(uint256 licenseId) external view returns (bool);
```

### License Types

| Type        | Description             | Typical Use         |
| ----------- | ----------------------- | ------------------- |
| Personal    | Non-commercial use only | Individual creators |
| Commercial  | Business use permitted  | Companies, products |
| Enterprise  | Unlimited, high-volume  | Large organizations |
| AI Training | Model training in TEE   | AI/ML companies     |
| Exclusive   | Single licensee only    | Premium deals       |

### Automatic Enforcement

Licenses automatically become invalid when:

* The license expires
* Payment terms are violated
* The licensee unstakes below required thresholds

***

## Staking System

Economic security and access control for the ecosystem.

### How It Works

By requiring users to stake tokens before accessing the marketplace, the protocol ensures:

1. **Aligned Incentives**: Participants have skin in the game
2. **Sybil Resistance**: Prevents spam and bad actors
3. **Automatic Enforcement**: Licenses invalidate when stake is withdrawn
4. **Economic Security**: Stake can be slashed for violations

### Access Tiers

| Tier         | Stake Required | Benefits                                      |
| ------------ | -------------- | --------------------------------------------- |
| Explorer     | 100 $DOMI      | Basic marketplace browsing, personal licenses |
| Professional | 1,000 $DOMI    | Commercial licenses, priority search          |
| Enterprise   | 10,000 $DOMI   | All license types, API access, bulk licensing |
| Validator    | 100,000 $DOMI  | Network validation, governance voting         |

### License Invalidation

The most powerful feature: If a licensee withdraws their stake below the required threshold, all their licenses become invalid immediately.

```
Licensee has 1,000 $DOMI staked (Professional tier)
         ↓
Licensee unstakes to 500 $DOMI
         ↓
Tier drops to Explorer
         ↓
Commercial licenses → INVALIDATED
```

### Slashing

Bad actors can have their stake slashed for violations:

| Offense                    | Slash Amount |
| -------------------------- | ------------ |
| Fraudulent IP registration | 100%         |
| License term violation     | 25-50%       |
| Validator misbehavior      | 10-100%      |

### Staker Rewards

Stakers earn from:

* 30% of platform fees distributed proportionally
* Validator block rewards (for 100,000+ stakers)
* Governance participation incentives

***

## TEE Enclaves

Private computation infrastructure for AI training.

### What is TEE?

TEE (Trusted Execution Environment) is a secure area within a processor that guarantees code and data are protected. Even the computer's owner cannot peek inside.

In Dominium, TEE enables: **AI models can train on your IP without ever exposing the raw data**.

### How It Works

```
┌──────────────────────────────────────┐
│           TEE ENCLAVE                │
│                                      │
│  Encrypted IP → Decrypt → Process    │
│                              ↓       │
│                          Results     │
│                              ↓       │
└──────────────────────────────────────┘
        Only outputs leave (model weights)
        Raw IP NEVER leaves
```

### Training Flow

1. AI Developer requests training access
2. License Factory verifies license + stake
3. Request routed to Phala TEE worker
4. Encrypted IP loaded into enclave
5. IP decrypted ONLY inside TEE memory
6. Training code executes on raw data
7. Model weights encrypted for output
8. Only encrypted outputs leave enclave
9. Attestation proof generated

### Remote Attestation

Cryptographic proof that:

* Specific code ran
* Inside genuine TEE hardware
* Without tampering

### Privacy Guarantees

| Data Type                 | Protection Level             |
| ------------------------- | ---------------------------- |
| Raw IP assets             | Never leaves TEE unencrypted |
| Training data             | Processed in isolated memory |
| Intermediate computations | Cleared after job            |

***

## Royalty System

Automated payment collection and distribution.

### How Royalties Work

1. License terms specify `revenueShareBps` (e.g., 500 = 5%)
2. Licensee reports revenue (or integrates reporting API)
3. Smart contract calculates royalty
4. EIP-2612 permits enable automatic collection
5. Payments distributed to IP owners

### Collection Flow

```
Licensee Revenue → Royalty Contract → IP Owner
      $100,000  →    5% ($5,000)   → Creator Wallet
```

### Payment Distribution

Platform fees (10% of transactions) are distributed:

* 20% → Buy-back and burn
* 30% → Staker rewards
* 50% → Protocol treasury

### Supported Payment Tokens

| Token | Use Case               |
| ----- | ---------------------- |
| USDC  | Default, most common   |
| USDT  | Alternative stablecoin |
| $DOMI | Platform native token  |

***

## Verification System

How Dominium validates IP ownership.

### Verification Levels

**Level 1: Self-Attested** (★☆☆)

* Owner signs message confirming ownership
* Instant processing
* Suitable for new/indie creators

**Level 2: Document Verified** (★★☆)

* Owner submits supporting documentation
* 24-48 hour review
* Accepted: Copyright certificates, contracts, creation evidence

**Level 3: Registry Verified** (★★★)

* Automatic validation against official registries
* USPTO, EUIPO, WIPO
* Suitable for patents, registered trademarks

### Multi-Signature Validation

For high-value IP, 3 of 5 validators must approve documentation.

### Challenge Process

Anyone can challenge a registration they believe is fraudulent:

1. Challenge filed with stake + evidence
2. Owner has 7 days to respond
3. Arbitrators review
4. If fraud confirmed: IP revoked, owner slashed, challenger rewarded

***

## Next up

* How terms become enforceable: [Programmable Licensing](/docs/learn/programmable-licensing.md)
* How it fits together: [Platform](/docs/learn/platform.md)
* Build on it: [Developers](/docs/build/developers.md)
* Definitions and acronyms: [Glossary](/docs/overview/glossary.md)