Edison Token

Sponsorship Agreement  

Between Edison DAO and [Inventor Name]  

 

This Sponsorship Agreement ("Agreement") is entered into as of [Date] by and between:  

 

1. Edison DAO, a decentralized autonomous organization operating on the Solana blockchain, with its primary purpose of fostering innovation and supporting inventors through the Edison Token ($EDSN) ecosystem ("Sponsor").  

2. [Inventor Name], an individual/inventor residing at [Address], hereinafter referred to as "Inventor."  

 

Collectively referred to as the "Parties."  

 

1. Purpose  

The purpose of this Agreement is to outline the terms and conditions under which the Sponsor will provide funding in the form of $EDSN tokens to the Inventor to support the development, production, and commercialization of the Inventor's invention ("Invention"). In return, the Inventor agrees to buy back and BURN 1.5X the USD value of $EDSN tokens received (at the time of transfer) upon reaching an agreed-upon level of profitability, as defined in this Agreement.  

 

2. Sponsorship Details

2.1 Funding Amount

The Sponsor agrees to provide the Inventor with a total of [X Amount] $EDSN tokens ("Sponsored Tokens") to fund the Invention.  

 

2.2 Use of Funds

The Inventor agrees to use the Sponsored Tokens solely for the development, production, and commercialization of the Invention. Any misuse of funds will result in immediate termination of this Agreement and potential legal action.  

 

2.3 Vesting Schedule  

The Sponsored Tokens will be distributed to the Inventor according to the following vesting schedule:  

- [X%] upon signing this Agreement.  

- [X%] upon completion of [Milestone 1].  

- [X%] upon completion of [Milestone 2].  

- [X%] upon completion of [Milestone 3].  

 

3. Buyback Obligation  

3.1 Profitability Threshold

The Inventor agrees to initiate the buyback and BURN of $EDSN tokens once the Invention reaches an agreed-upon level of profitability, defined as [X Amount in USD or Other Currency] in net profits over a [X-Month/Year] period ("Profitability Threshold").  

 

3.2 Buyback and BURN Terms

Inventors receiving Sponsorships will agree that when the product makes it to market and has reached an agreed upon profitability, $EDSN will be bought back and BURNED from the Liquidity Pool at a rate equal to 1.5X the USD value at the time of transfer of the $EDSN tokens supplied by the DAO for Sponsorship. (i.e. if an Inventor receives $EDSN worth $1000 USD they will be contractually obligated to purchase $1500 USD of $EDSN from the pool).  This way if the price is higher than when they received the tokens they will be raising the price floor and if the price is lower they will be buying significantly more tokens from the pool. This mechanism ensures that all successful Inventors help keep up the price floor of the $EDSN token and reduce the number of tokens in circulation.

 

3.3 Buyback and BURN Timeline  

The Inventor must complete the buyback and BURN within [X Days/Months/Years] of reaching the Profitability Threshold. Failure to do so will result in penalties as outlined in Section 6 of this Agreement. 

 

4. Reporting and Transparency

4.1 Progress Reports

The Inventor agrees to provide quarterly progress reports to the Sponsor, detailing the development status of the Invention, financial expenditures, and any milestones achieved.  

 

4.2 Financial Audits  

The Sponsor reserves the right to request an independent audit of the Inventor's financial records to ensure the proper use of Sponsored Tokens.  

 

5. Intellectual Property

The Inventor retains full ownership of all intellectual property rights related to the Invention. However, the Inventor agrees to grant the Sponsor a non-exclusive, royalty-free license to use the Invention for promotional purposes related to the Edison Token ecosystem.  

 

6. Termination and Penalties  

6.1 Termination

This Agreement may be terminated by either Party under the following conditions:  

- Breach of contract by the other Party.  

- Failure to meet milestones or misuse of funds by the Inventor.  

- Mutual agreement in writing.  

 

7. Governing Law  

This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction]. Any disputes arising under this Agreement shall be resolved through arbitration in [Jurisdiction], in accordance with the rules of [Arbitration Organization].  

  

8. Entire Agreement  

This Agreement constitutes the entire understanding between the Parties and supersedes all prior agreements, representations, or understandings, whether written or oral.  

  

9. Signatures  

By signing below, the Parties acknowledge that they have read, understood, and agreed to the terms and conditions of this Agreement.  

 

Edison DAO Representative

Signature: ___________________________  

Name: [Representative Name]  

Title: [Representative Title]  

Date: [Date]  

 

Inventor

Signature: ___________________________  

Name: [Inventor Name]  

Date: [Date]  

 

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This Agreement ensures that the Inventor is accountable for the funding received and that the Edison DAO community benefits from the success of the Invention through token buybacks, maintaining the price floor of $EDSN tokens.