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Model Tokens

Every model registered in Arbius automatically gets its own ERC20 token. These tokens represent fractional ownership in the model and its fee revenue.

What are Model Tokens?

When you register a model in Arbius, the protocol automatically deploys an ERC20 token contract for that model. These tokens:

  • Are created at model registration
  • Follow the ERC20 standard
  • Can be traded freely
  • Entitle holders to model fee revenue
  • Represent fractional ownership

Token Distribution

The initial token supply goes to the model creator:

// At registration, all tokens minted to msg.sender
modelToken.mint(msg.sender, INITIAL_SUPPLY)

Default Supply: 1,000,000 tokens (configurable)

Fee Revenue Sharing

Model token holders receive a share of the fees generated when their model is used:

How it Works

  1. User submits task for your model
  2. Task is solved by validator
  3. Model fee is collected
  4. Treasury takes percentage (via solutionModelFeePercentage)
  5. Remainder goes to model owner address

Distribution to Token Holders

The model owner (token holder) receives fees to the model's registered address. If you want to distribute these fees to all token holders:

Option 1: Manual Distribution

  • Collect fees to owner address
  • Manually distribute to token holders proportionally

Option 2: Fee Distributor Contract

  • Deploy a fee distributor contract as the model owner
  • Contract automatically splits fees to token holders

Option 3: Staking Contract

  • Create a staking contract for model tokens
  • Distribute fees to stakers

Use Cases

1. Model Ownership Transfer

Transfer ownership by selling model tokens:

// Sell tokens = transfer ownership share
await modelToken.transfer(buyer, amount)

2. Fractional Ownership

Multiple parties can co-own a model:

// Initial creator holds 1,000,000 tokens
await modelToken.transfer(partner1, 300_000) // 30%
await modelToken.transfer(partner2, 200_000) // 20%
// Creator retains 500_000 (50%)

3. Community Models

Distribute tokens to community:

// Airdrop tokens to community members
for (const member of community) {
  await modelToken.transfer(member, allocation)
}

4. Liquidity Provision

Provide liquidity on DEXs:

// Add liquidity on Uniswap/Sushiswap
await modelToken.approve(router, amount)
await router.addLiquidity(modelToken, WETH, ...)

Getting Model Token Address

Find the token contract for any model:

// Get model token address
const model = await engine.models(modelId)
const tokenAddress = model.token

// Interact with token
const ModelToken = await ethers.getContractAt('ERC20', tokenAddress)
const balance = await ModelToken.balanceOf(holder)

Token Holders and Governance

While token holders receive fee revenue, they do not automatically get:

  • Ability to change model parameters (only original owner)
  • Ability to pause the model (only original owner)
  • Governance rights over model settings

The model owner address retains administrative control. Token ownership is purely financial.

Best Practices

For Model Creators

  1. Consider tokenomics early - Plan distribution before launch
  2. Set up fee distribution - Implement automatic distribution if desired
  3. Provide liquidity - Make tokens tradeable on DEXs
  4. Communicate clearly - Explain token utility to holders

For Token Holders

  1. Understand the model - Research what the model does
  2. Check fee revenue - Verify the model generates usage
  3. Monitor performance - Track model task volume
  4. Liquidity awareness - Understand token liquidity before buying

Advanced: Fee Distributor Contract

Example distributor contract for model tokens:

contract ModelFeeDistributor {
    IERC20 public modelToken;

    // Receive fees from model
    receive() external payable {}

    // Claim proportional fees
    function claim() external {
        uint256 balance = modelToken.balanceOf(msg.sender);
        uint256 totalSupply = modelToken.totalSupply();
        uint256 share = (address(this).balance * balance) / totalSupply;

        payable(msg.sender).transfer(share);
    }
}

Set this contract as the model owner to automatically collect and distribute fees.