# What are IP Tokens?

Molecule accelerates biomedical research by converting intellectual property assets into open, liquid digital commodities through tokenization, decentralized funding, and collective ownership. 

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Discover IPTs&#x20;
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### **How IPTs Work**:

Intellectual Property Tokens are a novel funding mechanism that allows scientific researchers to fund, manage, and progress their research in collaboration with the crypto ecosystem. <br>

IPTs enable token holders to:

* Contribute intellectual property to early-stage science projects
* Participate in funding early-stage science
* Influence project direction and decision-making
* Vote and receive distributions onchain as project shareholders once qualified. [Learn more about the model.](https://www.molecule.to/blog/molecule-protocol-v2-bridging-the-future-of-decentralized-science-into-rwas)

The model introduces a compliant hybrid structure—utility tokens enable early, global participation; IP and treasury are held onchain within a traditional corporation, making discoveries more fundable and enabling efficient movement from lab to clinic.&#x20;

### Economic Rights:

IPTs are utility tokens representing participation in a decentralized science community. Once escrowed, IPT holders may advise on project direction, but do not automatically receive economic or legal rights.&#x20;

Contributors who wish to unlock a financial stake may apply to receive equity grants, thereby having an economic right in the proceeds of the intellectual property developed by the project. To unlock equity and binding governance, a holder must lock their tokens, complete KYC/AML, and execute a written equity agreement with the project. Shareholder rights then follow corporate law; holders who remain token-only participants retain tradeable credentials, not financial stakes. Revenue share and buybacks are always discretionary and ever conditional—not features of the token itself.

[Learn more about the legal framework](https://www.molecule.to/blog/molecule-protocol-v2-bridging-the-future-of-decentralized-science-into-rwas).

Read about the smart contracts for IPTs in our [Github repo](https://github.com/moleculeprotocol/IPNFT/tree/main).

### **The Role of IPTs in Decentralised Science (DeSci)**:

In the decentralized science (DeSci) ecosystem, IPTs serve as a vital tool for enabling broader community involvement in scientific research. By tokenizing intellectual property, IPTs democratize access to and control over scientific advancements, fostering a transparent, collaborative environment where the community can contribute to and influence the development of cutting-edge therapies.