# Intellex AI Protocol

#### Redefining Agent Interoperability and Coordination using Intellex Protocol’s Agent Relationship Management (ARM)

In the fast-evolving world of AI and decentralized systems, businesses require more than raw intelligence—they need a way to organize, manage, deliver and optimize the intelligence. That’s why we’re thrilled to introduce the Intellex Protocol, a revolutionary protocol designed to power the next generation of intelligence delivery and management through Agent Relationship Management (ARM).

The Intellex Protocol provides the infrastructure to seamlessly manage relationships between:

* Agents and people: Enabling human oversight, collaboration, and trustless interaction with AI agents.
* Agents and agents: Facilitating coordination, communication, and collaborative problem-solving among autonomous AI systems.

By combining cutting-edge blockchain technology with the intelligence economy’s demand for precise and reliable intelligent action delivery, the Intellex Protocol transforms how decentralized AI operates.

***

#### ARM: The Future of Collaborative Intelligence Generation

At the core of the Intellex Protocol is Agent Relationship Management (ARM), a game-changing framework that ensures autonomous agents can interact efficiently and transparently in a decentralized world.

* Why ARM Matters: In the intelligence economy, interactions between agents—whether between systems or with people—are complex, dynamic, and often unpredictable. ARM provides the structure to manage these interactions, enabling businesses to deploy AI solutions with confidence.
* How It Works: Using blockchain’s immutable, deterministic ledger, ARM creates a secure and auditable environment for managing the stochastic and probabilistic behaviors of AI agents.

ARM bridges the gap between the chaos of decentralized intelligence and the need for order in business operations, making scalable, trustworthy collaboration a reality.

***

#### The Role of Blockchain: Trust and Transparency

The Intellex Protocol leverages the unique strengths of blockchain technology to solve one of the biggest challenges in AI: managing uncertainty.

* Immutable Recordkeeping: Every interaction between agents is logged on the blockchain, providing an auditable trail of decisions and behaviors.
* Deterministic Foundations: Blockchain’s deterministic nature anchors the unpredictable interactions of AI agents, ensuring transparency and accountability.
* Incentive Alignment: Tokenized ecosystems ensure agents, organizations, and stakeholders are rewarded for collaborative behavior and value creation.

This fusion of blockchain and AI not only brings trust and order to decentralized intelligence but also empowers businesses to unlock the full potential of the intelligence economy.

***

#### Why Intellex Protocol Is a Game-Changer

The Intellex Protocol is the infrastructure for managing the intelligence economy, where the value of intelligence is tied to how well it solves problems.

Here’s what makes the Intellex Protocol revolutionary:

1. Interoperable Agent Networks: The Intellex Protocol enables businesses to deploy and manage diverse, AI-enabled digital workforces that operate across functional domains and organizational boundaries. By addressing the complexity of fragmented ecosystems, ARM ensures agents from different domains—whether supply chain, customer service, or logistics—can seamlessly collaborate.
2. Cross-Domain Coordination: A key challenge in decentralized intelligence is enabling agents to work together effectively despite varying objectives, data sources, or governance structures. ARM facilitates the coordination of these diverse teams, ensuring their actions align to drive ecosystem-wide efficiency.
3. Provenance and Accountability: Every interaction between agents is tracked through blockchain’s immutable ledger, providing a clear record of decision-making, data sourcing, and collaboration outcomes. This transparency ensures trust, compliance, and the ability to audit cross-domain interactions effectively.

***

“The future of intelligence isn’t centralized. It’s collaborative, transparent, and managed through Intellex.”

Intellex Protocol: Managing the Future of Intelligence.

<br>


# Overview

Brainstems is a pioneering decentralized infrastructure designed to revolutionize the field of artificial intelligence coordination and enterprise-level federated learning.&#x20;

Through Brainstems, businesses are empowered to collaborate seamlessly, harnessing the collective power of their aggregated intelligence to enhance industry-specific AI models. This innovative approach leverages federated learning, ensuring exceptional AI intelligence while maintaining data privacy and eliminating the need for centralized data pooling.

## What does Brainstems do?

Brainstems operates as a Decentralized Federated Intelligence Mesh (DeFIM), providing a trustless environment for businesses to coordinate and train AI models on disparate datasets. Enterprises, including direct competitors and supply chain partners, can join forces within the Brainstems ecosystem to train models collaboratively while preserving data privacy.

The Brainstems ecosystem consists of key participants, including Federation Partners, Stewards, Nodes, and Validators, each playing crucial roles in ensuring the network's functionality and integrity.

In order to ensure the economic security and integrity of the Brainstems network, participants utilize STEMS, the native utility token of the platform. STEMS tokens are ERC-20 tokens used to allocate resources within the network, including computation resources for model training.

Active participants, including Federation Partners, Stewards, and Nodes, can contribute to the network and earn rewards proportional to their contributions and STEMS stake. These rewards incentivize active participation and help drive the growth and sustainability of the Brainstems ecosystem.


# Benefits

The Brainstems' decentralized network has been engineered to revolutionize federated learning-and it is all made possible by our ecosystem of contributors.

[Previously](/#what-are-the-benefits-of-defim), our docs outlined the Benefits of  Brainstems' Decentralized Federated Intelligence Mesh (DeFIM) technology. Below, we will discuss how these benefits are directly expressed through the design of the Brainstems ecosystem.

## Why would a business use Brainstems?

We are currently performing a thorough cost savings audit comparing Decentralized Federated Learning with other AI training models. Results will be posted here!

## Benefits Deep-Dive

### Enhanced AI Learning

Brainstems facilitates the collaborative training of AI models by combining private datasets from various enterprises. This approach leads to the development of more robust and accurate models, as it leverages federated learning to aggregate insights from diverse sources. By participating in Brainstems, businesses can enhance their AI capabilities through access to a broader range of data and intelligence.

### Cost Savings

With Brainstems, businesses can significantly reduce the financial barriers associated with AI development. Unlike traditional approaches that require hefty infrastructure setup costs, Brainstems offers a more cost-effective model where organizations only pay for the resources they use. Additionally, the decentralized nature of Brainstems eliminates the need for expensive hardware investments and ongoing maintenance costs, making advanced AI capabilities more accessible to a wider range of businesses.

### Data Handling & Security

Data security is a top priority within the Brainstems ecosystem. Through state-of-the-art encryption methodologies such as homomorphic encryption and zero-knowledge proofs, Brainstems ensures that data remains encrypted throughout the process, safeguarding sensitive information from unauthorized access. Furthermore, the decentralized federated learning approach minimizes the risk of data breaches by distributing data processing across multiple nodes, reducing the likelihood of a single point of failure.

Proper data handling sits in the center of what we do. Before the start of any federated training process, Federation Partners will leverage our secure **light node toolkit** (hosted on enterprises' own servers) to collect, preprocess and encrypt their data. Post-encryption, data will be transferred to **full computation nodes** for individual training, with encrypted model weights then passed to **aggregation nodes** for final model creation.  To ensure this process is run correctly, **validation nodes** apply SMPC for secure model performance assessment and computation nodes generate ZKPs for training, which are also sent to validation nodes.

### Revenue Opportunities

Participating in Brainstems opens up new revenue opportunities for businesses. By contributing to the federated learning process, organizations can monetize their data more effectively and potentially access new revenue streams from subscriptions and model utilization. Additionally, the Brainstems financing model enables third-party Stewards to invest in Federated Deployments and earn returns based on the deployment's success, creating additional revenue opportunities for participants.

### Scalability

Brainstems is designed to be highly scalable, allowing businesses to seamlessly expand their AI capabilities as needed. The decentralized nature of Brainstems ensures that the network can adapt and grow dynamically, accommodating the evolving needs of participants and supporting the development of new AI solutions. As the ecosystem evolves, Brainstems aims to become a permissionless environment where data and models can be freely contributed for federation, further enhancing scalability and accessibility.

### Collaboration and Innovation

Brainstems fosters collaboration among businesses within and across industries by providing a platform for sharing data, expertise, and resources in a secure and trustless manner. The decentralized federated learning approach encourages innovation by allowing businesses to collectively develop and refine AI models, leveraging the diverse perspectives and insights of network participants.

### Enhanced Data Governance

Brainstems facilitates better data governance practices by providing tools for data owners to maintain control over their data throughout the federated learning process. Through on-chain records and smart contracts, Brainstems enables transparent and auditable data sharing agreements, ensuring that data contributions are accurately attributed and rewarded.


# Federation Partners

**Federation Partners** are essential participants in the Brainstems ecosystem, responsible for contributing valuable data to fuel collaborative AI model development. Federation Partners securely encrypt and transfer their datasets to computational nodes within the Brainstems network. These datasets are then used to train foundational AI models through Decentralized Federated Learning (DFL). The process of data contribution involves several key steps, including data encryption, transfer, and validation.

This collaborative approach to model development enables Federation Partners to leverage diverse datasets while maintaining ownership and control over their data.

In addition to contributing data, Federation Partners may also participate in the governance of the Brainstems protocol and contribute to the curation of high-quality models. This participation helps prioritize the selection of models for training and ensures that the resulting intelligence meets the highest standards of accuracy and relevance.

Overall, Federation Partners play a critical role in advancing the capabilities of Brainstems by providing the raw material necessary for AI model collaboration, training, and development. Through their contributions, Federation Partners drive innovation, collaboration, and value creation within the Brainstems ecosystem.

## FAQs and Technical Deep Dive

#### What are the tradeoffs between a running a light node and a full node?

Great question - to start, it is true that *any* federation partner can run either a light node or a full node, but *only* light nodes can be run by fed partners.

Why is that? Well, thats a question inside a question.

Light nodes provide a partners a toolkit with the bare minimum to get started within the Brainstems ecosystem, while full nodes must have the computation capacity to handle intensive training tasks, including processing encrypted data, generating model updates, and creating Zero-Knowledge Proofs (ZKP) to validate the training process.

So, its really a decision based on financial resources and technical know-how. We did not envision our clientelle having the time, money or resources to dedicate CPUs/GPUs to model training, which is why we built our light node framework in the first place!

#### Where is this Technical Deep Dive you speak of?

Hit our [Github](https://github.com/brainstems)! That's the spot for the latest and greatest when it comes to Brainstems tech. We do our best to keep our Gitbook and Github in sync, but everything hits Github first :)


# Stewards

**Stewards** serve as the key financial engine for the Brainstems ecosystem.

Stewards participate by providing financial resources, in the form of STEMS or USDC, to finance Brainstem Deployments.  Steward-based financing directly flows to Nodes incurring upfront computational costs associated with training the deployment's model on partner data. All Steward financing is locked in an escrow contract, released to Nodes after the successful verification of a Proof of Training. Note, a 2.5% fee will be applied to all Steward transactions, which will flow to Brainstem's Strategic Growth Fund.

&#x20;In return for their financial contributions, Stewards receive Brainstems Model Shares (BMS) representing an ownership stake in the success of the deployed models. Stewards are able to stake their BMS tokens to earn a 25% of the subscriptions paid by Federation Partners to access the intelligence generated by the Brainstem deployment.


# Nodes & Delegators

## Nodes

**Nodes** are fundamental to the operations of the Brainstems protocol, providing the computational and technical infrastructure necessary to facilitate DeFIM and model optimization. There are two primary types of nodes within the Brainstems network: Computation Nodes and Aggregation Nodes.

### Computation Nodes

Computation Nodes are responsible for executing the computational tasks involved in training AI models through DFL. These nodes receive encrypted data contributions from Federation Partners and perform the necessary computations to train the models based on the provided data. Computation Nodes process the data to train the foundation model generate model weights that are passed to Aggregation Nodes.

### **Aggregation Nodes**

Aggregation Nodes play a pivotal role in the optimization and refinement for the final intelligence output within a Brainstems deployment. Once weights are passed along for  optimization, Aggregation Nodes combine the model weights, leveraging techniques such as federated averaging to enhance the overall performance and accuracy of the trained models. Aggregation Nodes create a robust and high-quality AI model that is specifically trained for Federated Partner use-cases and reflects the collective intelligence of the Brainstems network.

### Staking, Rewards and Token Emissions

In order to be eligible to participate in an active Brainstems Deployment, nodes must stake at least 10,000 STEMS and enter the active node set. STEMS can be self-staked, delegated from Brainstems community members, or provided to the node via the [Brainstems Foundation Delegation Program](/the-brainstems-foundation/brainstems-delegation-program).

Rewards can be broke down into a few parts, as they occur at various stages of a Deployment Lifecycle. First, upon completion of the required training within a Brainstems Deployment, nodes will submit a proof to the Brainstems Validator in order to unlock the escrowed financing pool created by Stewards. This pool of funds is designed to compensate Nodes for the computation costs incurred throughout the training process.

All Federation Partners are required to pay subscription fees in order to access the intelligence created through their deployment. These fees are distributed across the various stakeholders within the Brainstems ecosystem, as outlined in [Tokenomics](/intellex-ai-protocol-ecosystem/tokenomics). Nodes will earn 15% of the subscription fees paid by partners.&#x20;

In additional to these rewards, Nodes will also passively earn STEMS through [Node Emissions](/intellex-ai-protocol-ecosystem/tokenomics), as an incentivize for helping bootstrap and scale the Brainstems network.

## Delegators

While Stewards are the financial underbelly of Brainstem deployments, Delegators provide the financial backing necessary for Nodes to participate in the network.

<figure><img src="/files/Hhpp19uTpx8qjwS2oKLR" alt=""><figcaption></figcaption></figure>

As shown above, Delegators can contribute stake to nodes in exchange for $STEMS tokens and deployment revenue.

Nodes compete to acquire $STEMS stake and computationally outperform other nodes, in order to increase their chances of being selected for actively deployments Brainstems. Thus, Nodes are incentivized to provide a % of their revenue to Delegators in exchange for stake. Nodes will be able to choose how the amount of rewards they are willing to give up; however, we predict 5-15% to be a competitive rate.

Delegators may use a variety of factors to choose which nodes to delegate to, including:

* % of rewards
* Reputation Score
* Number of Active Deployments
* % of existing stake

All metrics related to node performance will be provided within the Brainstems Node Activity Monitor, for Delegators to monitor.

Upon delegating to a node, delegated stake is locked until the next epoch when rewards are emitted (current estimate: \~30 days). If stake is undelegated during the epoch, it will automatically unlock at the end of the epoch and $STEMS will be returned to the delegators wallet.


# Validators

We are currently building out our permissioned validator set. More details on the role validators will play in Computation Validation will be provided shortly!


# The Application Layer

In addition to the work done by all the decentralized entities within Brainstems' protocol layer, there is also a lot happening behind the scenes to support the final UI businesses will leverage to access their intelligence. At launch, this work will be handled by the Brainstems Labs team, and supported by the Brainstems Foundation; however, over the coming years many of these services will be decentralized.

### JedAI - Activations Interface

Brainstems was built on the idea that data is *not* the new gold. Its what you do with the data that matters.&#x20;

In a similar vein, training a model on data does not inherently provide a business value, but in the right combination of data, models and agents, and giving the business an interface to engage with the model does.

Brainstems Labs' JedAI is a composable UI that will act as the primary interface for our first cohort of Brainstem deployments. JedAI will provide a conversational like front-end that can both chat with consumers and have pre-trained agents solving specific business tasks.

JedAI is Brainstems Labs first attempt to create an end-to-end AI solution for businesses. We will continue to enhance this product, while working with our community to create alternative interfaces for each Brainstem deployed.

### Brainstems Marketplace

Brainstems Labs has already built multiple foundation models that will sit at the center of our initial cohort of Brainstem deployments. However, we will look to quickly decentralize the model creation process.

We forsee that models will be created via both top-down and bottom-up approaches.

**Top-Down:** direct customer asks we will RFQ out to our community

**Bottom-Up**: organic models built from third-party data by our community

Regardless of source, we want to fund, support and host community models directly within the Brainstems protocol. Thus, soon after mainnet, we will launch the Brainstems Marketplace. More to come here!

### Identity Match & Data Cleaning

Prior to a Brainstem deployment, a lot of work must be done to ensure that data is properly formatted for model training. The Brainstems Labs team has built and is optimizing a V1 data cleaning and identity matching product, to automate this process.&#x20;

Initially, this product will be embedded into our Light Node toolkit; however, we will quickly aim to decentralize identity matching and data cleaning, facilitated through the Brainstems Marketplace.


# Tokenomics

Updated Tokenomics Coming Soon!


# Strategic Growth Fund

## Overview

In order to ensure the longevity of the Brainstems ecosystem and Foundation, at TGE we will allocate 5% of total token supply to the Strategic Growth Fund.

After token launch, the Strategic Growth Fund, **SGF**, will be funded through fees applied to many transactions within the ecosystem, as well as protocol revenue:

* 2.5% of all financing transactions by Stewards
* 1% of all delegations to Nodes
* 5% of all revenue from Federated Deployments

The goal of the Strategic Growth Fund is to ensure ecosystem stability and longevity. At mainnet launch, the Brainstems Foundation believes that financial stability will be an important mission of the SGF; thus, a portion of the funds will be deployed into our Buyback & LP strategy.

Upon creation of the SGF, 30% of the STEMS from TGE and 100% of the funds accrued through fees & protocol revenue will be allocated to this strategy.


# Brainstems Advisory Council

More details about the who and the what of the Brainstems Advisory Council coming soon!


# Buyback-LP Fund

More details on the Buyback & LP Strategy shortly!


# Foundation Treasury

Overview

At TGE, the Brainstems Foundation Treasury will be transferred 25% of the total STEMS supply. Of this supply, 10% of it will immediately become available for operational expenditures, with the remaining vested over a 4-year period.

**Note: The Brainstems Foundation is a separate entity from Brainstems Labs. The Brainstems Foundation will oversee ecosystem stewardship and growth, while Brainstems Labs will focus on protocol development, roadmap execution and general infrastructure maintenance.**

#### Funding Needs <a href="#funding-needs" id="funding-needs"></a>

As Brainstems decentralizes, it may identify various uses of the treasury for investment, expansion and growth. Decision making over these opportunities will under the discretion of either the Brainstems Foundation Council or STEMS Governance. The Brainstems Foundation is still in the process of reviewing our governance structure so all information on this page is **subject to change (Last Update: 2/22/24).**

That being said, we have identified a few early use cases for the Foundation Treasury that we will aim to operationalize in the short-term:

**Current Operating Expenses:**

1. **Team Salaries and Compensation:** Salaries and compensation for core team members and other essential roles within the Foundation.
2. **Administrative Costs:** Budget for essential administrative expenses, including legal, accounting, and compliance fees, to ensure the Foundations operations are compliant with regulatory requirements.
3. **Marketing and Outreach:** Funds for marketing and outreach campaigns to increase awareness of the Brainstems Ecosystem and attract more participants and contributors.
4. **Partnership Initiatives:** Budget for strategic partnerships and collaborations that can enhance Brainstems capabilities and reach.

**Long-Term Growth Efforts:**

1. **Research and Development:** Dedicate a significant portion of the treasury to research and development efforts, including the improvement and acceleration of zkML, data privacy and decentralized AI training.
2. **Treasury Management:** Diversifying the treasury by investing in other protocols -- both inside and out of deAI & DeFIM.
3. **Strategic Growth Fund:** At this time our Strategic Growth Fund will be purely funded through transaction taxes, protocol revenue, and 5% of TGE; however, the Foundation could agree to allocate a portion of the larger treasury to the reserve. The fund's aim is to act as both an ecosystem accelerant and a financial buffer for unforeseen expenses or market volatility, ensuring the ecosystem's stability.
4. **Acquisitions:** Opportunities for strategic acquisitions of complementary projects or technologies that accelerate ecosystem growth.

It's essential to strike a balance between current operational needs and long-term growth aspirations when allocating funds from the Foundation Treasury, ensuring that the Foundation remains sustainable and well-positioned for future success. Thus, we will work to ensure transparency and community involvement in all decisions regarding treasury allocations.


# Brainstems Delegation Program

As we approach testnet, we will provide more details into the Brainstems Delegation Program and how you can sign up!


