> For the complete documentation index, see [llms.txt](https://docs.molecule.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.molecule.xyz/introduction/how-it-works.md).

# How it works

#### 1. **Create a Lab**

Log onto [labs.molecule.xyz](https://labs.molecule.xyz) and create a Lab. To begin, all you will need is an image, a title and a description. From there, you can fill your Lab with files, data and team members.

The Lab is free to create — so there is no financial barrier to entry. From the moment it's created, it can hold assets, store data, interact with DeFi protocols, and accumulate a verifiable track record.

#### **2. Research & Store Data**

Upload datasets, protocols, images, and results directly to your Lab. Files are encrypted and stored on decentralized infrastructure, every version content-addressed in the data room's provenance log — and the data room itself anchored onchain to your Lab via [DID linking](/core-infrastructure/data/data-module.md) — creating an immutable provenance trail. Every version is tracked — negative results, intermediate datasets, and methodological notes all become part of the Lab's permanent history.

Set access per file — public or confidential. This means you can share raw data publicly to build credibility, gate premium datasets behind access permissions, or keep sensitive pre-publication results private until you're ready. Your Lab's data room is also accessible via the Labs API, so agents, partners, and integrations can read and write to it programmatically.

Instead of data sitting in institutional silos, it becomes a live, queryable asset that appreciates in value as research progresses. Funders can evaluate a Lab's data footprint. Collaborators can build on prior work. AI agents can operate on it continuously.

#### **3. Tokenize & Fundraising**

Turn IP into liquid capital. Create tradeable tokens within your Lab and run a crowdsale. Communities, Decentralised Autonomous Organizations (DAOs), and individuals fund research in exchange for governance stakes. All funds flow directly into your Lab's treasury — tracked, transparent, and under your control.

This is where the illiquid-to-liquid transformation happens. Tokenization creates immediate price discovery, secondary market liquidity, and shared participation. An early-stage drug compound that would typically take years to reach any financial exit now has a live market from day one.

Token holders get access. Token-gated data rooms, governance rights over research direction, and priority access to licensing deals create a community of aligned stakeholders around every project.

Alternative funding paths include licensing IP directly for upfront or royalty payments, selling the IP outright via an over-the-counter (OTC) swap, or receiving streaming payments tied to milestones. Smart contracts automate token issuance, sale settlement, revenue sharing, and treasury custody — removing intermediaries and reducing the cost of capital.

#### **4.** Run Autonomous Research

With an authorized agent and a funded treasury, your Lab can run research continuously. Molecule is integrating BIOS — an AI scientist framework that runs specialized agents for literature search, data analysis, hypothesis generation, and reflection. The agent reads from your Lab's data room via the Labs API, performs analysis, and writes findings back as versioned records. Every output gets a CID and a permanent place in the Lab's anchored provenance record.

Agent outputs become new data in the Lab — feeding the next cycle of analysis. This creates a compounding research loop: data goes in, agents analyze it, new findings are recorded, tokens are created, funding flows in, agents run more experiments. The Lab continuously accumulates value whether the researcher is actively working or not.

Labs support three modes — Fully Autonomous (agents run independently within safety boundaries), Human-Directed (agents assist while researchers retain strategic control) and fully Human-run Labs.

#### **5. Build a Track Record**

Every action is recorded: funding events, role changes, and DID links land onchain, while data uploads and agent operations are captured in the Lab's anchored provenance log. The Lab accumulates a verifiable history that follows it permanently. Reputation accrues to the Lab itself.

This has direct commercial implications. Funders can perform due diligence by inspecting a Lab's onchain footprint — how much data has been generated, how many experiments run, what IP has been registered, how funding was deployed. It replaces the opaque, fragmented due diligence process in traditional biotech with a transparent, auditable record.

Labs that demonstrate consistent research progress, growing data rooms, and responsible treasury management build credible track records that attract more funding, better collaborators, and licensing interest — creating a flywheel effect.

#### **6. Transfer, Merge or Compose**

Because the Lab is an NFT, everything it holds can be transferred in a single transaction — data, tokens, treasury, history.

We are moving towards the technical infrastructure that will support Labs owning other Labs, creating hierarchical structures that map to how research actually works — umbrella programs with multiple investigation lines, each with their own data, IP, and funding.

Additionally, we are looking into the Lab's treasury deploying funds into yield-generating protocols to self-fund ongoing research. Tokens can be used as collateral. Licensing revenue can be automatically split between stakeholders via programmable smart contracts. The Lab will become a programmable financial primitive for science.