Key Takeaways:
- Discover the pioneering Initial Model Offering (IMO) that aims to revolutionize how AI models get on the blockchain.
- Explore the facets of this novel fundraising model that can elevate the prospects for open-source AI-based models.
- See how you can use this model to garner a strong community of followers alongside ample funding for the project.
The market for artificial intelligence (AI) has been growing immensely in the last year or so, with the advent of Large-scale Language Models (LLMs) accessible to many people. As a result, the proportion of the global population using AI solutions directly or indirectly skyrocketed compared to other novel technologies like blockchain. However, the existing AI models come with several inherent risks, such as centralization and open sourcing. These models prove to be a challenging endeavor. Initial Model Offering (IMO) has evolved as the next step toward making open-source AI language models a reality. This blog discusses the IMO crowdfunding model and how it could be a game-changer for the global Web3 space.
Initial Model Offering: An Introduction
An Initial Model Offering (IMO) is a crypto fundraising model supporting projects based on open-source AI models. The model is an upgrade to the traditional crypto fundraising models by using tokens based on an advanced token standard to provide ownership to people. This model has been implemented successfully by a few open-source AI projects, with the market receiving them grandly.
- As of now, the Initial Model Offering (IMO) model uses ERC-7641 Intrinsic RevShare tokens, a subset of the ERC-20 standard common among fundraising projects. Using such an exclusive token type can aid AI projects in capturing the long-term value of the IMO-based tokens.
- People who purchase tokens from the Initial Model Offering campaign will become owners of the AI model for which the fundraising event happens. Doing so enables token holders to share the revenue generated from the AI model, making it an attractive opportunity for technology enthusiasts and avid investors.
- This kind of initial offering based on cryptocurrencies can be a boost for the open-source AI community. The global independent AI developer community often witnesses a lack of motivation to develop language models due to the nearly non-existent model for incentivizing contributors. Such sentiments result in centralized giants occupying the majority of the market.
The Mechanism Behind IMO
The Initial Model Offering solution functions quite differently when compared to other crypto-based crowdfunding models, such as ICOs or IDOs. With the content generation process and the revenue sharing model working a bit differently in the AI realm, having a specialized functional mechanism becomes essential for a community fundraising campaign to attain the desired success.
- We discussed the process behind an IMO in the previous section, where the AI model creates ERC-7641 tokens to execute the IMO. After this, people can buy those tokens and gain their share of the revenue garnered by the model. But, exploring the underlying details of the IMO process uncovers several interesting points.
- The IMO model comes with two crucial facets: The On-chain AI Model and Revenue Sharing Tokens. The on-chain AI model runs fully on the blockchain and is implemented using mechanisms like zkML (that uses zero-knowledge cryptographic proofs) and opML (that uses cryptoeconomic principles to ensure the model’s correctness).
- On the other hand, the revenue-sharing tokens use the ERC-7641 Intrinsic RevShare standard that offers token holders revenues from multiple fronts. People can gain ERC-7641 tokens as revenue generated by the model’s usage, as well as ERC-7007 tokens as revenue generated by AI-based content created by the particular model. Notably, the ERC-7641 standard is a subset of the much widespread ERC-20 fungible token standard as a way to standardize the revenue-sharing mechanism.
Needing Community Presence and Funding Support for Your New Open-source AI Model?
How Could the IMO Model Revolutionize the AI Industry?
With a process depending on several novel blockchain-based tokens, the IMO crowdfunding model could pave the way for a diversified AI ecosystem compared to other pathways like ICOs or IDOs. We know how centralized the current AI ecosystem is, occupied directly and indirectly by a small set of tech giants like Microsoft, Google, Meta, and Amazon.
- With diverse revenue opportunities, the IMO model could incentivize independent AI developers and organizations to work more to contribute to open-source conversational AI models, especially those based on medium-scale language models. They can get tokens representing both the model and the content it generates.
- Alongside incentivization to contribute to open-source AI models, the IMO model can also aid in providing long-term benefits and encouraging engagement from the public and developers alike. By doing so, open-source AI language model projects can have their chances in the heavily centralized market, serving themselves the opportunity to attain global adoption.
- With crypto tokens representing AI projects, such as $NEAR, $TAO, $RNDR, $GRT, and $INJ, garnering massive price appreciation in the last few months, the Initial Model Offering could be the conjunction that the AI space requires to become more decentralized. Together, AI and cryptocurrencies could foster a new era of digital connectivity and operations that the world might not have imagined before.
Is Conducting an IMO a Plausible Choice Right Now?
While the promises of IMO sound pleasing and revolutionary, its full potential is yet to be seen. By observing the reception received by projects like OpenLM releasing their IMO tokens ($OLM, in the case of OpenLM), we can certainly say that it is a less risky endeavor than other fundraising models like ICOs.
If you are an aspiring business owner with a bright idea for a smaller-scale AI language model based on open-sourcing principles, using an IMO campaign to attain an investor and contributor base could be a perfect starting point. Although platforms like ORA exist now for launching IMO projects (similar to IDO launchpads), it is up to you to choose how you conduct your token offering campaign.
Conclusion
Therefore, we have seen the Initial Model Offering (IMO) in detail, with its mechanism and revolutionary advantages. We also say how it could be an excellent option for open-source AI projects to find a strong community base. With the role of AI becoming increasingly inseparable from the mainstream world, it is essential for diverse projects to make their presence felt. Mechanisms like IMO aid in this exceptionally by allowing independent and decentralized investments for small to medium-scale AI language models that prioritize open-sourcing, moving the AI industry away from tech giants’ control. If you are someone looking to execute an IMO campaign or build an application supporting others’ IMO campaigns, our experts at Blockchain App Factory can provide you with the perfect solution. Connect with us now to begin your new Web3 endeavor!
