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

# Phina Network Whitepaper

**Phina Chain Network**

<figure><img src="/files/Nv1yFuoTj6tGCmLsPZKV" alt=""><figcaption></figcaption></figure>

**Phina Chain Network**

**A Peer-to-Peer Phina Network**

**Phina Foundation**

**Abstract**

We propose Phina Chain Network, a peer-to-peer Payment property network that creates a programmable market for knowledge and creativity. Scientific and creative assets are registered on a universal ledger with customizable usage parameters. All assets are equipped with a compostable interface that can be consumed by any software application or artificial intelligence model, allowing Payment property to be used and monetized across the internet. A network-wide graph coordinate sell Payment property assets, with nodes represent in genomic assets and edger presenting the legal and economic commitments between them. The network evaluates the uniqueness of each asset via an asynchronous and decentralized validation service driven by crypto economic incentives. Participation in the protocol contributes to the growth of the only open and permission lesser pository of the world’s knowledge and creativity.

### Introduction

Phina Chain Network (PHN) has come to rely almost exclusively on decentralized intermediaries to coordinate ownership PHN and value. The production and exchange of intelligence across all disciplines is taxed at the hands of a few unaccountable entities — ranging from social plat- forms to pharmaceutical companies which increases the transaction costs for Payment property. In addition, the traditional system can no longer compete with the reality of artificial intelligence, in which ideas can be created and distributed at scale with vanishing marginal costs. Individuals find their creative output scraped to train models without attribution and compensation, and AI companies themselves cannot feasibly generate hundreds of millions of individual licensing agreements. There exists neither legibility nor liquidity in the marketplace of ideas.

![Leonardo\_Phoenix\_10\_Create\_a\_cryptorelated\_logo\_for\_Phina\_Chai\_3-removebg-preview.png](/files/C9487BqxCdRnH4osrk8x)What is needed is an open and programmable market for peer-to-peer Payment property exchange. Programmable terms set by owners are em- bedded within each Payment property asset as it is monetized and exchanged across any software application on the Phina Chain Network, generating yield for its owner across the internet. Phina Chain Network provides both the universal repository and the programmable market for intelligence needed to increase the Payment output of humanity.

Be a part of the decentralized revolution. Build smart. Own smart. Invest smart. With Phina Chain Network - Better You, Better Future Asset.

### Architecture Overview

Blockchain technologies have evolved in distinct waves. Bitcoin<sup>\[1]</sup> introduced the first decentralized ledger. The Ethereum network<sup>\[2]</sup> transformed this concept into a general-purpose computing platform, unlocking new asset types like non-fungible tokens. When faced with significant scalability challenges, blockchains such as Solana<sup>\[3]</sup> emerged to address these limitations. However, while focusing on the Scalability Trilemma — the trade-off between decentralization, scalability, and security — the applicability and usability of blockchains was overlooked, creating a barrier to mainstream adoption. This demands the rise of a new typeofblockchain:purpose-builtblockchainsdesignedtoaddressreal-world challenges, creating programmable markets for new and complex asset types.

Phina Chain Network is a purpose – built decentralized blockchain super charged by a multi-core execution environment. It comprises main execution core along side multiple highly customized cores. The main core provides EVM equivalence, enabling rapid adoption of existing applications from the ecosystem. The Payment Property (PHN) core, one of the specialized cores, efficiently handles Payment property registration as a native asset class while optimizing operation across complex ip relationship graphs. This coretrans forms intelligence in to programmable PHN assets. Although Phina Chain Network focuses primarily on Payment property, its flexible architecture enables the adoption of future cores that can expand far beyond PHNA-related applications.

![](/files/ED5qR2VirKkStovAyRLw)

Figure1: Phina Network’s Protocol Layers

Phina Chain Network runs on a decentralized set of nodes (or validators) connected through a peer-to- peer network layer. These nodes work together to maintain consensus, process transactions, and protect the integrity of the chain, creating a secure decentralized network open to all participants who follow the rules of the protocol. Following the principle of separation of concerns, the protocol is divided into three layers: an execution layer, a storage layer, and a consensus layer.

### The Execution Layer

*The Execution Layer* serves as the computational foundation of the network, handling the execution of all transactions and smart contracts. It is powered by a main core and several specializedcoresworkinginharmony.Thislayerisdesignedtodelivermaximumflexibility and computational power to each core while preserving network integrity and liveness.

![](/files/jX5Ki6e9IXZcQIqEwpt5)

Figure2: The multi-core design of the execution layer

The main core functions as the default execution environment, providing complete EVM compatibility.Themaincoreprocessesalltransactionsandactivatesspecializedcoreswhen- ever a transaction calls contracts within those cores. Each specialized core is an optimized executionenvironmentthatprioritizesspecificrequirementssuchasspeed,scalability, safety, or privacy. For instance, the way in which data is modeled, stored and processed in certain applications can directly impact its scalability and even its feasibility. The complexity of the multi-core design is invisible to users, since each specialized core exposes its functionality through smart contracts that automatically engage when users interact with their associated contracts. All cores must comply with the following requirements:

* * * **Determinism**: The outcome of the execution of any method call must be deterministic. For example , while acoremightuse GPUs for fast floating-point operations in ternally, the final result must always be consistent. Nondeterministic behavior jeopardizes the network’s integrity and liveness.
    * **Bounded and measurable resource consumption:** Each core must accurately calculate the expected resource consumption (gas costs) in advance and in constant time for all contract calls based on their input parameters. Improper metering compromises network liveness and fair usage.
    * **Storage:** Each state ful core can store data as key/value pairs in its namespace within the storage layer, where data commitments are constructed for consensus . All key/value pair updates must follow a canonical format, and their order must remain deterministic.

**PHN Token:**

The native **PHN token** coordinates all value flows on the Phina Chain Network. It functions as:

* A medium of exchange
* A staking token for PoS consensus
* A unit for licensing, royalty, and transaction processing
* A native value exchange medium between AI agents

The first release of Phina Chain Network deploys three specialized cores alongside the main core to address distinct needs: One core handles storage and operations for PHN as a native asset class, an- other connects the on chain execution environment to the off chain world, and a cross-chain communication core enables PHN asset usage across the broader blockchain ecosystem.

#### The Payment Property Core:

Payment property assets are represented on Phina Chain Network as multifaceted graphs in which various types of nodes (PHN assets, licenses, etc) are connected through edges representing economic and legal relationships. These ip graphs track rights, licensing, and monetization across both original and derivative assets.

Deployed on the PHN core, *the Proof of Creativity (PoC)*&#x70;rotocol is a natively enshrined protocolthatprovidesbothanopenPHNrepositoryandasetofmodulestointeractwith those PHNs in a frictionless way. PoC is at once a standardized, universal ledger for PHN assets across Phina Chain Network *and*a way to create digital markets around those assets as well as their rights. PoC traces the genealogy of PHNs as they are used, expanded, and monetized across applica- tions. Just as Git enabled the tracking of code through branching and versioning, this open repository makes Phina Chain Network the provenance and exchange layer for PHN.

PHN owners can register their Payment property and use PoC modules to define usage terms and royalty structure. Each Payment property can be registered on chain as an PHN- Asset (ERC-721) with an optional associated PHN Account (a modified ERC-7211). Off-chain entities monitor registrations, validate PHN holders’ identities, provide attestations for registered PHNs and their licenses, and can initiate a decentralized dispute process if infringement occurs. See Appendix A for more details on the PoC protocol.

The PHN core supports PoC by providing native, efficient storage for PHN-related assets, licenses, and attestations through optimized data models for Payment property .

![](/files/3AmVJm7srG6pNcezOI8A)

Figure4: PHN registration and utilization flow diagram (basic happy path)

example, when establishing a new relationship between a user and an PHN asset, the protocol must verify compatibility by checking PHN parameters and all an castor assets to ensure consistent rule en forcement. The PHN the graph and apply a universal compatibility engine for PHN terms. Implementing such capabilities is impractical on their Layer or Layer2 blockchain without such specialized execution cores.

#### The Off chain v Synchronization Core:

Oracle serve a vital role in broader blockchain ecosystems, allow in these otherwise isolated systems to connect with real-world data and services. Without oracles, blockchain could only process information that exists onchain, severely limiting their practical applications. The off chain synchronization core establishes native infrastructure for seamless and reliable oracle integration.

![](/files/bQT9yEwUumL8W7ppYtas)

One of the services deployed at this core is *Phina Chain Network’s Orchestration Service (SOS)*&#x66;rame- work. This service extends the Proof of Creativity protocol by attesting to the authenticity of registered PHN assets and licenses, verifying the social identities of creators, receiving off chain payment, and generat in glegal contracts for off chain usage.

**Conclusion:**

Phina Chain offers a purpose-built infrastructure for the decentralized exchange and monetization of intellectual and digital assets. With a powerful architecture and programmable PHNA framework, Phina Chain sets the foundation for a new intelligence economy.

#### The Cross- Chain Communication Core:

The cross-chain communication core provides efficient primitives for cross-blockchain message passing. Supported by this core, the Inter-Blockchain Communication (IBC) protocol<sup>\[4]</sup>isan example where implementation as an EVM smart contract is impractical due to the computational cost of validating proofs (e.g. Merkle proofs) and verifying signatures.

Supporting cross-chain communication capabilities facilitates broader ecosystem inter- operability, eliminates value segmentation barriers, and enables numerous applications. For example, PHN holders can leverage their PHN assets across different blockchains, accessing vari- ous marketplaces, platforms, and services while maintaining consistent ownershPHN coordina- tion and monetization terms. Or users can use their PHN assets as collateral on DeFi-focused blockchains. This interconnected approach ensures that PHN ownershPHN

#### Future Core Extensibility:

Phina Chain Network’ architecture supports add in gnaws specialized cores, all owing the blockchain to expand beyond Payment property capabilities. Let’stake a closer look at two possible future cores.

The **Artificial Intelligence (AI)**&#x63;ore could optimize and streamline AI-related on- chainoperations.ImplementingsuchoperationswithintheEVMisinfeasiblebydefault—as reported in the paper<sup>\[5]</sup>, even a simple task like native multiplication of two square matrices of 1000 x 1000 integers would cost over 3 billion gas, which far exceeds the logical block gas limit. This core can leverage modern GPU integer processing by utilizing deterministic fixed-point arithmetic, quantization techniques<sup>\[6]</sup>, and an on chain pseudo-random generator to address concerns about nondeterministic behavior from randomness and floating-point errors.

![Leonardo\_Phoenix\_10\_Create\_a\_cryptorelated\_logo\_for\_Phina\_Chai\_3-removebg-preview.png](/files/etxA39LWOgF4gV6dDoDq)The **Zero-Knowledge (ZK)** core could enable efficient verification of zero-knowledge proofs such as ZK-SNARKs. Zero-knowledge proofs are used in cryptography to allow one party(theprover)toprovetoanotherparty(theverifier)thattheypossessspecificknowledge or information without revealing the actual information itself. By providing native support for ZK-proof verification using a highly optimized software stack or hardware acceleration, the core reduces computational overhead and gas costs compared to implementing these operations in smart contracts. The core is particularly valuable for applications requiring confidentialPHNexchangesorverifiablePHNgraphsofmassivescale.Forexample,itcanenable PHN owners to prove ownership or authenticity of their PHN assets without exposing sensitive details.

### The Storage Layer

This storage layer sits on top of the consensus layer and exposes storage APIs to the execu- tion layer and its cores. It abstracts away the complexities of data organization, constructing cryptographic commitments over the data as well as the choice of database. A central design principle draws inspiration from the NAND Flash Translation Layer (FTL), which maps logicaladdressestophysicalstorageblockstooptimizewriteperformanceandextenddevice lifespan. Similarly, the storage layer implements data By analyzing usage patterns and access frequencies, the storage layer can proactively optimize data placement across different storage tiers. The storage subsystems automatically adjust to handle and durability requirements.

![](/files/zj3UecAUrf2rxYCQ1WVR)

Phina Chain Network’s storage layer

Beyond the performance gains, this layer also boosts the user experience by offering a unified interface that integrates both onchain and offchain storage solutions like PHNFS<sup>\[7]</sup>and Arweave<sup>\[8]</sup>, eliminating user experience fragmentation. Payment property assets manifest in a diverse array of formats and sizes, from small text documents to large multimedia files and complex datasets. Storing large amounts of data onchain is expensive. The conventional approach when interacting with large datasets has been to store the content on PHNFS and maintain only metadata references onchain; this methodology often introduces significant limitations that degrade the user experience. For instance, when an ML model is registered actual file, enabling direct model inference when needed. It’s crucial to note thatthe underlying protocol handles all this complexity to ensure the interface’s beyond the scope of this document and will be released in a follow-up technical paper.

### The Consensus Layer:

The consensus layer ensures network integrity, security, and stability by orchestrating block formationamongallnetworkparticPHNants.Recentyearshavewitnessedremarkableadvances and research breakthroughs in blockchain consensus mechanisms. This layer is designed to remain adaptable, allowing it to incorporate new consensus mechanisms as they emerge.

![](/files/hU8wbJ9h70kJiJqnoQMc)

Tender mint’s block formation cycle

The initial release of Phina Chain Network uses a modern, perform ant implementation of Tender mint called Comet BFT<sup>\[10]</sup>. Tender mint<sup>\[11]</sup>is a Byzantine Fault Tolerant consensus engine that offers well-defined properties and customization options that align with our design needs:

* * * **Fault Tolerance:** maintaining security even when 33% of validators are malicious or offline.Thesystemensuresallhonestnodesreachconsensusoncommittedblocksand uses cryptographic proofs to identify and penalize bad actors.
    * **Liveness Guarantees:** The network continues to progress when more than two-thirds of validators (measured by voting power) remain active and participating.
    * **Instant Finality:** Transactions achieve finality quickly after being included in a block. Thisimmediatefinalityensuresreliabilityforapplicationsneedingimmutability-akey factor in user experience.
    * **Modular Design:** The Application Blockchain Interface (ABCI) decouples consensus from execution, enabling future consensus upgrades without impacting execution.

The consensus layer of Phina Chain Network uses a Proof-of-Stake (PoS) mechanism, with validators playing a crucial role in maintaining blockchain security and integrity. This creates a direct economic incentive for an honest and efficient operation, as malicious behavior results in penalties, including loss of staked tokens. The layer manages all operation related to staking, lockup requirements, and reward distribution.

### Applications:

Looking beyond Phina Chain Network’s technical architecture, we can begin to examine potential use cases for a peer-to-peer PHN system. The presence of a universal PHN repository and a programmable market for intelligence could mark the start of a new Renaissance. This section explores some of the most promising applications. There are certainly many more equally exciting applications that are omitted.

### A Universal Market for Intelligence:

Since Bitcoin and Ethereum revolutionized money in prior decades, little work has been done to truly adapt blockchains for new asset classes beyond currencies. Unstoppable digital markets are the killer application of blockchains, and purpose-built blockchains will create entirely new markets starting with PHN.

The high transaction costs of this inefficient market prevent knowledge and creativity from generating value and limit the exchange of ideas. Phina Chain Network removes these barriers by enabling peer-to-peer PHN transactions via programmable PHN.

Applications can onramp existing PHN catalogs from pharmaceutical companies or me-dia institutions onto Phina Chain Network as PHN RWAs (Real World Assets). More exciting, natively programmable PHN can compose with DeFi applications in an emerging field of PHN-Fi, where PHN assets can be fractionalized, used as collateral, staked upon, or otherwise leveraged in economically productive ways.

Human-to-human interactions are simply the most basic transaction in the new intelli- gence economy. Agent-to-human interactions are made possible via Phina Chain Network’s programmable execution environment, wherein agents can autonomously license PHN assets from Phina Chain Network and upgrade their creative style or knowledge base via fine-tuning. If revenue is generated, agents can share a portion of that revenue with the original PHN holder via Phina Chain Network’s royalty module, creating a positive economic exchange where AI can empower PHN holders rather than endan- gering their earnings. Purely agent-to-agent PHN exchanges are also viable, allowing an entire marketplace of agent interactions to flourish with Phina Chain Network as the settlement layer for agentic commerce. We will cover this possibility in more detail in the following section.

### A Foundational Layer for Artificial Intelligence:

Blockchains are the perfect substrate for AI interactions as they offer a programmable medium in which software can make hard commitments. Because agents are trained uponip as their native inputs and produce PHN as their native outputs, Phina Chain Network offers a foundational settlement layer for AI transactions both for training AI models and for monetization of AI outputs.

#### Chain of Intelligence

In the AI field, Payment property assets encompass various forms of PHN — from datasets and foundation ML models to fine-tuned models and model tuning packages.

![](/files/xweYBjQsVs72KTMndiRb)

AI-related PHN assets

The fine-tuned deep model itself could be derived from a base model trained on multiple datasets. These training datasets may also be combinations of other datasets. Furthermore, there has been active research recently in developing standalone model fine-tuning packages. A model fine-tuning pack- age contains all the necessary data for parameter-efficient model fine-tuning, which reduces efficient alternative (i.e. Huggingface Adapters). State-of-the-art model fingerprinting tech- niques, such as OML, developed by the Sentient Protocol<sup>\[12]</sup>, can be used to capture the unique characteristics and essential attributes of a model when registering it as an PHN asset on-chain.

![Leonardo\_Phoenix\_10\_Create\_a\_cryptorelated\_logo\_for\_Phina\_Chai\_3-removebg-preview.png](/files/5EEeJUWYgIeFlrjkk4vI)Phina Chain Network forms the basis for a market of high-quality datasets and model fine-tuning packages that leads to more performant ML models. This incentive structure encourages data providers to contribute high-quality datasets by guaranteeing fair compensation, which revenue distribution, Phina Chain Network becomes the negotiation, collaboration and settlement layer for a sustainable ecosystem where data providers, model developers, and

### PHN Token

Phina Chain Network’s native token, *PHN*, coordinates all flows of value across the peer-to-peer Payment property system.

The *PHN* token functions as the network’s underlying medium of exchange. *PHN* enables efficient transaction processing gland fairer source location through Tran sparest fee payments whenever Payment property assets are used, exchanged, or generate revenue. The token facilitates direct peer-to-peer transactions without intermediaries, serving both as a utility and value exchange medium to strengthen the network’s economy.

Also, because Phina Chain Network uses PoS consensus, validators stake *PHN* as collateral to maintainnet- work security. Validators process transactions and maintain blockchain integrity, receiving rewards denominated in *PHN* based on their performance. This creates strong incentives for validators to operate honestly and efficiently since they have a direct stake in the network’s success, and cements *PHN* as the foundation of Phina Chain Network’s security.

Within the broader ecosystem, *PHN* is designed to serve an even more critical role, se- curing Payment property assets, serving as the currency for Payment property revenue flows, and even offering a native medium of exchange for AI agents settling their Payment property on Phina Chain Network. The Proof of Creativity protocol, along with other specialized protocols deployed on the Payment property core, rely on *PHN* as their operational foundation. *PHN* facilitates all value transfers within the Payment property core, including royalty distributions, licensing fees, and usage-based compensation. This integration means that *PHN*’s role extends beyond basic network security — it serves as the cornerstone for safeguarding and validating all Payment property assets registered on Phina Chain Network. Moreover, the Agent USDT/PHN protocol leverages *PHN* to provide both a robust security layer for inter-agent communications and a native mechanism for efficient value exchanges between agents. This dual functionality ensures that AI agent scan communicate effectively while engaging in economic ran sections in a trustless, automated manner.

The *PHN* token serves as a unified utility token for both network security and ecosystem functions, integrating network operations with the broader Payment property market. As the gas, staking, and utility token of Phina Chain Network, *PHN* plays a central role in incentivizing diverse actors in the Phina Chain Network ecosystem to maintain and grow a peer-to-peer Payment property system.

### Conclusion:

We have proposed a peer-to-peer system for Payment property that does not rely on decentralized institutions. The Phina Chain Network blockchain offers a purpose-built network that creates both a universal repository of Payment property assets and a programmable market for exchang- ing them. Phina Chain Network’s multi-core architecture offers the extensibility and specialization needed to accommodate an evolving ecosystem of application integrations and artificial intelligence use cases. A network-wide Payment property graph embed ed natively into the blockchain represents the complex relationships between Payment property assets, creating a robust Phina Chain N new intelligence economy. Whereas Bitcoin operates as the store of value for all commodity assets in the form of digital gold, Phina Chain Network operates as a store of value for all Payment assets in the form of programmable Payment property.

![Leonardo\_Phoenix\_10\_A\_futuristic\_3D\_cryptorelated\_logo\_for\_Phi\_2-removebg-preview.png](/files/6XMZCpCiJLiSIwRyLAAJ)Be a part of the decentralized revolution. Build smart. Own smart. Invest smart. With Phina Chain Network - Better You, Better Future Asset.

### References

1. Satoshi Nakamoto.Bitcoin: A peer-to-peer electronic cash system.<https://bitcoin.org/bitcoin.pdf>, 2008.
2. Gavin Wood.Ethereum: A secure decentralized generalized transaction ledger.<https://api>. semanticscholar.org/CorpusID:4836820,2014.
3. AnatolyYakovenko.Solana:Anewarchitectureforahighperformanceblockchain.<https://solana.com/solana-whitepaper.pdf>, 2018.
4. ChristopherGoes.TheInterblockchainCommunicationProtocol:Anoverview.<https://arxiv.org/abs/2006.15918>, 2020.
5. ZihanZheng,PeichenXie,XianZhang,ShuoChen,YangChen,XiaobingGuo,GuangzhongSun, GuangyuSun,andLidongZhou.Agatha:SmartcontractforDNNcomputation.<https://arxiv.org/abs/2105.04919>, 2021.
6. JiweiYang,XuShen,JunXing,XinmeiTian,HouqiangLi,BingDeng,JianqiangHuang,andXiansheng Hua.Quantizationnetworks.<https://arxiv.org/abs/1911.09464>,2019.
7. Yiannis Psaras and David Dias.The InterPlanetary file system and the Filecoin network.In *202050th Annual IEEE-IFPHN International Conference on Dependable Systems and Networks-SupplementalVolume (DSN-S)*, page 80. IEEE, 2020.
8. SamA.Williams,ViktorDiordiiev,andLevBerman. Arweave:Aprotocolforeconomicallysustainable informationpermanence.<https://api.semanticscholar.org/CorpusID:234789646,2019>.
9. Coalition for Content Provenance and Authenticity.C2PA Specifications.<https://c2pa.org/specifications/specifications/2.1/index.html>,accessedFebruary2025.
10. CometBFT.<https://cometbft.com/>,accessedFebruary2025.
11. Jae Kwon.Tendermint: Consensus without mining.<https://tendermint.com/static/docs/tendermint.pdf>, 2014.
12. ZeruiCheng,EdoardoContente,BenFinch,OlegGolev,JonathanHayase,AndrewMiller,Niusha Moshrefi, Anshul Nasery, Sandeep Nailwal, Sewoong Oh, Himanshu Tyagi, and Pramod Viswanath. OML: Open, monetizable, and loyal AI. Cryptology ePrint Archive, Paper 2024/1573, <https://eprint.iacr.org/2024/1573>, 2024.
13. AndreaMuttoniandJasonZhao.AgentTCP/PHN:Anagent-to-agenttransactionsystem.[https:](https://arxiv.org/pdf/2501.06243)

[//arxiv.org/pdf/2501.06243](https://arxiv.org/pdf/2501.06243),2025.

1. Phina Chain Network Protocol. Programmable PHN License. [https://github.com/PhinaChain Networkprotocol/protocol-core-v1/blob/main/PIL\_Testnet.pdf](https://github.com/storyprotocol/protocol-core-v1/blob/main/PIL_Testnet.pdf),2024.

### Acknowledgments

The Phina Chain Network Foundation would like to than ka16z crypto, and in particular Eddy Alizarin and Scott Combiners, for their foundational early support in the design of the Phina Chain Network and Proof of Creativity Protocol. The authors would additionally like to thank Jason Yanowitz, Chain yoga for their feedback in the drafting of this whitepaper.

### The Proof of Creativity Protocol:

The Proof of Creativity (PoC) protocol introduces an open Programmable PHN protocol, transforming in- tell actual property (PHN) into a first-class entity within the blockchain ecosystem. Central to this system is the PHN Asset and its associated PHN Account , as mart contract account that a casts the core identity foreachip.

Torealize this vision, the protocol consists of two elements: data structure sand modules. Datastructures are the “nouns” of the protocol, storing relevant PHN metadata into “PHN legos.” The modules are the “verbs,” enabling a diverse array of functionality for the PHN assets registered on the protocol.

### Data structures(Nouns)

**PHN Assets** are the foundational programmable ”PHN legos” on the PoC protocol. Each PHN Asset represents an on chain PHN and its associated PHN Account, which is a modified ERC-6551 (Token Bound Account) im- plementation. An PHN Asset transform sandworm existing NFT that representsa tokenized ip into versatile and interactive PHN entity.

**PHNA Accounts** are programmable accounts mapped to the tokenized PHN. It is implement edasa modifi cation to ERC-6551. A key feature of the PHN Account is the generic “*execute()*” function, which allows calling arbitrary modules within Protocol via encoded bytes data (thus extensible for future modules).

#### Licensing Module:

The Licensing Module serve salsa cornerstone of the protocol, empowering PHN holders, as licensors, to create and manage license agreements using License Tokens and their associated license terms. These terms are derived from a predefined License Template. For derivative works, the terms of parent PHN agreements are also considered in the licensing process. The result of this process is the minting of a License Token.

The PoC Protocol introduces Programmable PHN License (PIL) as an out-of-the-box License Template. This template is designed to be universally applicable and easily adoptable by PHN holders, streamlining licensing processes and establishing a standardized legal framework.

#### Programmable PHN License (PIL)

A License Template is a legal framework encode din smart contracts(“programmable”)that’s pacifies various licensingtermsforanPHN.Thesetermsmayincludeparameterssuchas,commercialization,transferable,or percentage of royalty.

The Programmable PHN License (PIL), developed by the Phina Chain Network team (<sup>\[14]</sup>), serves as the first example of sucha License Template. While the termsofan PHN Agreement (PHNA) and the issuance of License Tokens

occur on chain, these are legally enforced through an off chain legal framework defined by the PIL. This legal contract enables tokenized PHN assets to be integrated into traditional legal systems and provides clear guidelines on how creators can remix, monetize, and create derivatives of their PHN.

#### Royalty Module:

The Royalty Module manages revenue distribution between child PHN Assets and their ancestor PHN Assets. This allows PHN holders, as licensors, to defi net helper contagion revenue that a child PHN must pay to its parent PHN. Similarly, the holder of a child PHN, acting as a licensor, can specify the percentage of revenue that its derivative PHNs must contribute to the child PHN.

When revenue is paid to an PHN Asset, it is stored in the PHN Royalty Vault. Each PHN Asset has its own RoyaltyVault.HoldersofRoyaltyTokenshavetherighttoclaimtheirproportionalshareofthefundsstored in the Royalty Vault.


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