OpenBuild Protocol

1. Abstract

OpenBuild is a decentralized protocol that creates sustainable funding for open-source AI developers through utility-backed tokens. Unlike creator coins that derive value from speculation and social following, $BUILD tokens are backed by measurable, verified utility metrics—API usage, active users, downstream integrations, and retention rates.

Built on Base, OpenBuild combines the self-curation model of Protocol Guild with the public goods funding mechanisms of Gitcoin, creating a new paradigm where developers are rewarded proportionally to the real-world impact of their work.

2. The Problem

2.1 The Open Source Funding Crisis

Open-source software powers 90% of modern applications, yet most maintainers work without compensation. The AI revolution has amplified this disparity—developers building foundational AI tools, agents, and infrastructure often receive nothing while corporations extract billions in value from their work.

2.2 Creator Coins Failed

• Speculation over substance: Token prices reflect hype cycles, not actual utility
• Celebrity advantage: Top-earning tokens go to influencers, not builders
• No quality signal: Impossible to distinguish valuable projects from noise
• Misaligned incentives: Creators optimize for engagement, not impact

2.3 Existing Solutions Fall Short

• GitHub Sponsors: Relies on voluntary donations; most projects receive <$100/month
• Grants: One-time payments with no ongoing sustainability
• VC funding: Requires giving up ownership and aligning with profit motives
• Bounties: Piecemeal work that doesn't fund long-term maintenance

3. The Solution

OpenBuild introduces a utility-backed token model where $BUILD value is directly tied to the measurable impact of registered projects. This creates a virtuous cycle:

3.1 Key Innovations

• Utility-backed bonding curve: Token price mechanically tied to cumulative verified utility
• Self-curation via vouching: New projects must be sponsored by existing members (Protocol Guild model)
• Multi-dimensional metrics: Gaming-resistant through diverse utility measurements
• 4-year vesting: Long-term alignment between developers and token holders

4. $BUILD Tokenomics

4.1 Token Distribution

4.2 Bonding Curve Mechanism

$BUILD uses a utility-weighted bonding curve where the token price increases as cumulative verified utility grows. This creates natural price discovery based on real adoption:

4.3 Vesting Schedule

• Developer rewards vest linearly over 4 years
• 90-day cliff before first unlock
• Vesting continues only while project maintains utility threshold
• Unvested tokens return to treasury if project becomes inactive

5. For Developers

5.1 Eligibility Requirements

• Public GitHub repository with 6+ months of active development
• Minimum 3 contributors
• 100+ GitHub stars (or sponsor override)
• Demonstrable AI/agent functionality
• Two existing members must vouch for the project

5.2 Registration Process

1. Connect wallet: Link your Base wallet to establish on-chain identity
2. Submit repository: Provide GitHub URL for verification
3. Find sponsors: Get vouched by two existing OpenBuild members
4. Verification: Commit OpenBuild verification file to your repo
5. Begin tracking: 90-day utility measurement period begins

5.3 Benefits

• Sustainable income: Earn proportional to your project's real-world usage
• No strings attached: Keep full ownership and control of your project
• Community support: Access to network of builders and sponsors
• Visibility: Verified utility metrics serve as social proof

6. For Investors

6.1 Value Proposition

$BUILD offers exposure to the AI infrastructure layer without picking individual winners. As the ecosystem of registered projects grows and generates utility, token value increases mechanically through the bonding curve.

6.2 Why $BUILD?

• Utility-backed: Price reflects real adoption, not speculation
• Diversified exposure: Single token covers entire ecosystem of AI tools
• Gaming-resistant: Multi-dimensional metrics make manipulation expensive
• Transparent: All utility data verifiable on-chain
• Impact: Your capital directly funds open-source AI development

6.3 Risk Factors

• Early-stage protocol with unproven token model
• Dependent on continued growth of registered projects
• Regulatory uncertainty around utility tokens
• Smart contract risk (audits pending)

7. Utility Measurement

7.1 Metrics Framework

7.2 Anti-Gaming Mechanisms

• Sybil resistance: User verification through wallet history and on-chain activity
• Metric diversity: No single metric can be gamed to significantly impact rewards
• Peer monitoring: Members have incentive to report suspicious activity
• Gradual vesting: Long-term alignment reduces pump-and-dump incentives
• Slashing: Proven gaming results in forfeiture of unvested tokens

8. Governance

OpenBuild uses progressive decentralization, starting with a core team and transitioning to full DAO governance as the protocol matures.

8.1 Governance Powers

• Adjust utility metric weights
• Modify eligibility requirements
• Allocate treasury funds
• Approve protocol upgrades
• Resolve disputes between members

8.2 Voting

Voting power is determined by a combination of $BUILD holdings and verified utility contribution, ensuring both investors and builders have meaningful voice in protocol decisions.

9. Roadmap