What is Molecule Protocol?

Source: molecule

Molecule Protocol promotes top-tier scientific research by connecting researchers with decentralized communities looking to finance such projects through its main product, Catalyst. Its mission is to reduce human suffering by turning scientific discoveries into real cures.

Molecule uses blockchain technology to convert the intellectual property (IP) in scientific research into Intellectual Property Tokens (IPTs). This approach helps researchers avoid the stress of securing funding so they can focus on other work. It also encourages communities to get involved in supporting and funding science projects that reflect their interests and values.

The project aims to create a world where scientific research is guided by public involvement, by creating a fully transparent and decentralized funding model. It established a global, interoperable system to handle intellectual property, while promoting better collaboration among researchers, patients, and investors. This system encourages innovation and ensures that only the most promising scientific advancements are prioritized, as such creating better treatments and improving general health.

History of Molecule Protocol

Molecule was founded in 2020 by Tyler Golato and Paul Kohlhaas. Tyler is a biomedical researcher and biogerontologist, while Paul, the CEO, is an entrepreneur, economist, and web3 engineer. Other members of the team include Beata Baranowska, the Chief of Staff; Lutz Kummer, the R&D Managing Director; Benji Leibowitz, the COO; and Logan Bishop-Currey, the Biotech Operations Manager.

Since its launch, Molecule has partnered with various projects, including HairDAO, VitaDAO, and AthenaDAO. The organization is supported by investors such as Shine Capital, Box Group, Northpond Ventures, Fifty Years, and Lunar Ventures, among others.

Additionally, Molecule has funded over 35 research projects, providing over $170 million in funding across its ecosystem. The community has grown to include up to 25,000 members.

How Does Molecule Protocol Work?

Molecule introduced the concept of intellectual property tokenization through IP-NFTs and IPTs. Intellectual Property Non-Fungible Tokens (IP-NFTs), are essentially the blockchain’s representation of intellectual property, including patents, research data, etc. This makes it easier to manage and share IP assets.

On the other hand, Intellectual Property Tokens (IPTs) are fungible tokens derived from IP-NFTs. They allow holders to share ownership of the IP asset, and as such they can govern and fund research projects linked with the IP.

Molecule’s funding process is made up of three main steps: connecting your wallet, contributing to projects, and receiving Intellectual Property Tokens (IPTs).

To get started, users need to connect their Ethereum wallets. You can do this by clicking the “Connect” button on Catalyst’s website. You can also select from the options available if you already have a wallet. Those without an existing wallet can create one by signing in with an email or social media account, which will set up a wallet automatically. Alternatively, you can create your own Coinbase Wallet.

After connecting your wallet, try to ensure it contains ETH on the Base blockchain network, as ETH is the native currency for funding projects. If your ETH balance on Base is less than the required amount for participation, the platform will prompt you to purchase additional tokens.

At this point, you can now fund active scientific projects available on Catalyst by browsing through various projects marked under “Fundraising.” After finding a project you want to support, you’ll need to specify how much ETH you want to contribute. Next, confirm the transaction in your wallet, and wait for it to be processed. You can track your contributions in the Activity tab under the Funders section, which shows your wallet address and the amount you funded.

Users will receive IPTs after successfully funding a project. When a project reaches its funding goal, a 12-week negotiation phase begins, and the funds raised are securely held in the project’s wallet. Once the negotiations are complete, an Intellectual Property Non-Fungible Token (IP-NFT) will be minted, and users will receive IP Tokens proportional to the amount they contributed.

These tokens will be sent directly to your wallet and can be managed or traded anyhow you prefer. Molecule also offers a direct refund policy: if a project does not meet its funding goal by the deadline, you’re entitled to a full refund of your ETH contribution. However, if you decide to withdraw your funds during an active fundraising campaign, Molecule will charged a 5% fee.

Main Features of Molecule Protocol

Catalyst

Source: catalyst.molecule.xyz

Catalyst is the Molecule ecosystem’s main product, and it works as a decentralized platform that helps researchers bring their projects to life. The platform offers streamlined access to funding for projects while appealing to a community of patrons of science backers who share the same goals.

Catalyst serves three main purposes. First, it offers an easier route for researchers to gain funding for their projects, so they face fewer obstacles and can provide more creative ideas. The platform also helps researchers network with their peers, promoting teamwork and collaboration, which will, in turn, lead to better results. Finally, Catalyst uses blockchain technology to track how funds are managed, keeping the entire funding process transparent and promoting more trust for everyone involved.

Additionally, Catalyst uses a bonding curve to provide consistent and dynamic pricing for projects, thus ensuring all projects have a transparent funding process. As more tokens are minted during a funding phase, the token’s price rises, indicating higher demand. On the other hand, when investors sell their tokens, the price decreases. This approach provides real-time insights into the token’s value, creating a predictable funding mechanism.

Early investors enjoy lower token prices during the initial offering phase, encouraging early project support. As the project gains more traction and demand grows, the price of tokens increases, rewarding those early backers with more value for their holdings. The bonding curve also maintains liquidity, allowing participants to buy or sell tokens easily.

The project’s fee structure comprises a 5% markup on contributions to create liquidity pools for trading Intellectual Property Tokens (IPTs). A 5% pre-minting fee is allocated to Molecule to create liquidity pools after negotiations are completed. Contributors who wish to pull out during the funding phase will incur a 5% exit fee.

Successful projects can allocate accumulated fees and pre-minted IPTs to investors to improve their liquidity. However, projects that fail to meet their funding goals will have to provide full refunds to contributors, who must manually withdraw their funds. As such, Molecule will keep any accumulated exit fees, ensuring secure transactions and operational efficiency.

IP-NFTs

Intellectual Property Non-Fungible Tokens (IP-NFTs) are an alternative solution for interacting and transacting with scientific work. Its structure enables it to combine intellectual property, underlying data, and tokenomics into one programmable, transferrable token represented on the blockchain. As such, IP-NFTs allow their owners to contribute to pooling resources, rubbing their minds with other researchers, and funding science projects.

The legal structure of IP-NFTs combines traditional legal agreements with blockchain-based smart contracts to manage ownership of intellectual property (IP) and research and development (R&D) data rights. This approach uses two main legal contracts: the Sponsored Research Agreement and the Assignment Agreement. These agreements are integrated into the functionality of the IP-NFT through smart contracts.

The Sponsored Research Agreement is a contract between a researcher and the sponsor funding the project. It outlines key elements of the research collaboration, including the amount of work to be done, results expected, project schedule, and budget. The agreement also details the intellectual property (IP) and research data rights that the sponsor receives in exchange for funding, ensuring the research meets the sponsor’s expectations.

Usually, the agreement includes rules governing confidentiality, data ownership, and how results can be published. It may also cover licensing terms, patenting opportunities, and support for related activities, such as workshops and conferences.

The Assignment Agreement, on the other hand, is needed to convert the research IP into a digital, blockchain-compatible asset. This contract gives the rights established in the Sponsored Research Agreement to the owner of the IP-NFT. This means that when the NFT is sold, the IP and data rights can easily be transferred to a new owner. This method provides a safe and decentralized way to manage IP assets, giving both researchers and sponsors better tools for collaboration and making money from their work.

IPTs

Intellectual Property Tokens (IPTs) are set up to allow individuals to directly support and govern the intellectual property produced by world-class scientists. They are created from a parent IP-NFT, and they allow owners to participate in decisions like what experiments are made, which scientists will work on the project, licensing rights, and how the project will be funded.

The IPT tokenization process involves using a smart contract called the Tokenizer, which processes IP-NFTs into IPTs. It features a “tokenizeIpnft” function, which mints a new ERC-20 token as well as an initial supply. The IPT owner also has full control over the number of tokens that can be issued. As such, more tokens can be minted in the future, but this may reduce the value of existing tokens.

IPT holders may also need to agree to some legal agreements to unlock certain privileges. These agreements may include terms and conditions for using the IP, and they are stored on the blockchain through an InterPlanetary File System (IPFS). This ensures that the rights of both the owner and the token holders stay protected.

Molecule for Researchers

Currently, Molecule has received up to 621 research proposals, reviewed over 500 and funded 12. The project offers various benefits for researchers. They include faster collaboration, which allows researchers to work more efficiently, breaking down geographical barriers and connecting diverse minds from around the world.

Molecule simplifies the funding process for researchers through BioDAOs (decentralized communities interested in funding certain scientific projects), guiding them from the initial proposal submission to the final project funding. The process starts with the application and prequalification stage. At this point, researchers submit detailed proposals that outline the scope, objectives, methodologies, and potential impact of their research. These proposals then undergo an initial screening to assess their eligibility and relevance, ensuring that only promising projects move forward.

The next step involves a thorough commercialization and intellectual property (IP) assessment. This stage is where evaluators examine whether the research has the potential to generate valuable intellectual property and commercial opportunities. Projects with high IP potential and a clear path to impactful results will be prioritized for further review.

Once a project passes the IP assessment, it goes to the expert review phase. Specialists in the relevant field check the proposals, giving recommendations based on the project’s feasibility. These expert insights help refine the proposals and add more assurance on their value.

After the expert review, the community votes on the proposals. BioDAO token holders review the expert evaluations and project summaries, and their input determines which projects best reflect the community’s values and goals.

If the vote is successful, the chosen projects will receive funding. This includes creating an Intellectual Property Non-Fungible Token (IP-NFT), which formalizes the agreement between the IP owner and the BioDAO. The IP-NFT details ownership and sponsorship terms, ensuring full transparency. Afterward, the required funds will be transferred to the research lab, allowing the researchers to begin their work immediately with the necessary resources they need.

Molecule Protocol Ecosystem

VitaRNA

VitaRNA was developed by Artan Bio in collaboration with VitaDAO. It is a biotech protocol aimed at stopping genetic mutations that contribute to age-related diseases and cancer. More specifically, it focuses on mutations that can create premature stop codons that disrupt protein production, leading to nonfunctional proteins. VitaRNA’s plans to suppress these mutations by restoring normal protein translation without interfering with natural genetic processes. This targeted therapy uses a bio-inspired suppression mechanism to improve efficiency, avoiding side effects like aberrant protein production seen in other treatments.

The project has recently achieved major milestones, including the successful tokenization of its intellectual property through the Artan Bio IP-NFT, raising up to $300,000 in a community-driven crowdsale. This funding supports the development and delivery of the nonsense suppression system using an adeno-associated virus (AAV) vector, known for its success in gene therapy.

KardaForge

KardaForge was developed by Dr. Anna Kaksonen, the senior research principal scientist. It is a DeSci project aimed at reducing electronic waste (E-waste). The world is heading towards an era of electrification, expansion of AI data centers, and electrification of transportation. This increases the demand for critical metals like lithium and other rare earth elements to create electronic devices and batteries.

KardaForge is developing a process to use microorganisms to extract and recover valuable metals from e-waste to stop disastrous environmental consequences. This approach ensures that humans have the necessary materials to create futuristic technologies while promoting sustainable recycling and reducing waste. The project was able to raise up to $210,000 in a year. This funding will allow the project to develop newer and cost effective solutions for handling and recycling e-waste.

Matrix Bio

Gorbunova Lab developed Matrix Bio in conjunction with VitaDAO. It is a longevity project fighting cancer by extracting the anti-cancer and pro-longevity properties of drugs containing high molecular weight hyaluronic acid (HMW-HA). This substance is usually found in longer-living species like the naked mole rat, with a lifespan of up to 40 years.

Matrix Bio was able to earn up to $300,000 in funding. Its IP-NFT, VITARAT, was minted on November 7th, 2024. The project is currently in its early preclinical discovery stage, and it is expected to achieve two major targets. First, it will identify and optimize new drug candidates using HTS and biochemistry. Afterwards, it will test how well an active inhibitor works in mouse cancer models.

News on Molecule

On October 4th, Molecule and AthenaDAO celebrated a significant milestone in decentralized science (DeSci) with their advancements in ovarian aging research. Dr. Mario Cordero, who received $120,000 in funding from AthenaDAO, has made promising discoveries regarding the role of the cGAS-STING biological pathway in ovarian aging. This pathway, known for its inflammatory effects, has been identified as a key factor contributing to fertility decline. The research suggests that blocking the cGAS-STING pathway could potentially slow ovarian aging and help preserve fertility in women.

Dr. Cordero’s work is structured around three major components, revealing that removing the cGAS-STING pathway in animal models helped maintain ovarian reserves and improve fertility. Additionally, the study examined how chemotherapy accelerates ovarian aging and identified a small-molecule inhibitor named “A2,” which has shown promise in reducing inflammation and cellular damage linked to this pathway.

Is Molecule a Good Investment?

Molecule serves as a decentralized marketplace connecting the world’s best scientists with blockchain communities interested in advancing scientific research. As innovative as that sounds, however, one shouldn’t forget that the crypto market is quite volatile. As such, everyone should do proper research before investing in any crypto project.

Useful References

For the latest updates on Molecule Protocol, you can visit:

• Website
• LinkedIn
• Whitepaper
• Twitter