PRüF Asset Class Nodes: Classifying assets in the PRüF ecosystem

In PRüF, each asset is minted in a type. The type is called an “asset class”. There are both normal and root asset classes, where normal asset classes are subclasses of a root asset class. In PRüF, asset classes are referred to as ACNodes (asset class nodes).

PRüF assets are held by individuals or smart contracts. The way that the asset is referenced, the way it can be interacted with, and the general nature of its utility in the PRüF infrastructure is determined largely by the type, or ACNode, in which it is minted. For example, a TRX-500 mountain-bike may be created in the “bicycle” ACNode, a sub type of the “ultra-light land vehicle” (ULLV) root ACNode.

The bicycle may then be manipulated in or transferred to any ACNode in the “ULLV” root category by its owner, so it might be transferred to the “mountain-bike” ACNode at some point, also a subtype of the ULLV root. It is important to understand that the asset cannot be moved to a type ouside the root type in which it was created, so that the TRX-500 could not be registered in the “Netbooks” ACnode, because “Netbooks” is a subnode of the “Portable Computers” root node.

ACNodeKeys

Each individual ACNode is controlled by an ACNodeKey. ACNodeKeys act as access tokens that enable the key holder to designate the costs of user actions on the network, the contracts (business logic) with which assets can interact, and the namespace (“mountain-bikes”) that the key controls.

ACNodeKey holders may receive a share of user fees generated by interactions on the network within their node class. The percentage of network fees that ACNodeKey holders receive usually ranges from 51% to 95% depending on the node configuration, though special cases outside that range may exist.

ACNodeKeys allow the configuration and reconfiguration of pricing, namespace, IPFS data link, and other data for the related ACNode. The only thing that cannot be changed is the ACNode Root Class, so, as an example, if an ACNode is minted in the “ultra-light land vehicle” (ULLV) class, it cannot be repurposed to another class of asset. Its name and target demographic can be changed, but it will remain tied to the ULLV root.

The ACNode model allows node operators to customize user interactions and provide additional value to users of that asset type. ACNode operators would also typically offer a customized web portal or app to provide access to the PRüF ecosystem, with attendant opportunities for additional brand education, targeted advertising, direct sales, and other value-producing actions.

ACNode operators also have the option of using the default web-app interface maintained by the PRüF foundation, but it is recommended that ACNode operators provide a customized interface for the best user experience.

Getting an ACNodeKey

ACNodeKeys are obtained through the PRüF contract infrastructure, via an ACNode purchase option in the web or desktop application.

To create a new ACNode, PRüF is burned at a progressive rate, starting with ü20,000 for the first 125 nodes — with the price increasing as more ACNodes are minted — up to ü200,000 or more for each node. (prices are initial estimates only and may be modified)

PIP170, which has been adopted formally, outlines the creation of decentralized nodes with staking and revenue sharing. PIP170 Compliant contracts will be rolled out after the main-net launch. Decentralized AC Nodes, or dNodes, can be initially crowdfunded and allow for decentralized governance, community staking, and profit sharing.

Who would use an ACNodeKey?

We anticipate that many brands will set up brand-specific nodes through which their customers will do pre-purchase authentication and product registration. This will create an opportunity for brands to interact with their customers to promote brand education, product awareness, accessory sales or up-sells, as well as other value-generating customer interactions.

We think that most ACNodeKey holders will be in one of the following categories:

• independent node operators
• Small shops or online businesses driving traffic for sales or advertising revenue
• Nodes designed manly to create revenue from network fees
• Community, club, non-profit, or NGO based nodes, providing a service to the community
• new kinds of enterprises built around the private and secure nature of the PRüF infrastructure
• High privacy asset management firms
• major brands wishing to reduce or eliminate brand piracy or counterfeit products in their markets
• manufacturers
• certifying resellers
• ??? We’ll probably see things we haven’t thought of yet!

Initially, the PRüF team will mint and publish a comprehensive batch of root asset classes, then some select ACNodes in specific market segments. We will submit a call for proposals for these ACNode namespaces and will review the received proposals and choose collaborators based on our evaluation of their proposal and ability to execute. These ACNodes will be donated to these projects upon the successful implementation and approval of their ACNode portals.

ACNodeKeys are minted with a 51% profit share by default. They can be upgraded up to 95% so that 95% of any PRüF generated through user interactions goes to the ACNodeKey holder’s specified address. This is so that the barrier to entry to get started is lower, but as a node begins to generate revenue, its revenue share can be upgraded to the full 95%. This revenue share remains attached to the ACNode permanently so that the upgrade increases the value of the ACNodeKey if it is transferred in the future.

Estimated token burn quantities to mint ACNodeKeys (these are the defaults set in the contract):

First 125: ü20,000

to 250: ü30,000

to 500: ü45,000

to 1000: ü70,000

to 2000: ü100,000

to 4000: ü150,000

over 4000 ü200,000

Because of their flexibility and progressively increasing minting cost, purchasing ACNodeKeys to resell as the price rises may seem like an attractive speculative purchase — and while that may be true, ACNodeKeys are a utilitarian part of the PRüF infrastructure, and are not meant as an investment vehicle or speculative instrument. We do not recommend minting ACNodeKeys for speculation.