The Agreements Network Ecosystem: Legal Template Producers and Testers
The Agreements Network is an open, permissioned infrastructure for operation of digital legal products, and it will change the way the global business of law is conducted. Legal products are the software that enable legal solutions at scale, in ever-expanding markets and ever-growing complexity of transactions. In this blog we examine the Agreements Network ecosytem participants who build legal products on the Agreements Network: legal template “Producers” and “Testers.”
A software legal product is a multi-dimensional machine that benefits from more than one mind building it. The innovation process improves when collaborations are at arms’ length and participants have a market-based incentive to give honest feedback. The Agreements Network provides the market-based framework for products built in collaboration with developers and lawyers to open new markets and revenue streams. Below, we look at a couple illustrative examples of how legal template producers and testers use the Agreements Network.
Legal Product Producers
Beth is a London commercial real estate lawyer who wrote a standard form lease with fill-in-blank variables. Most of her landlord clients use the form for their tenants. Beth would like to make this available for more widespread use than just her existing clients and chooses to become a producer on the Agreements Network.
Beth designs a template incorporating the legal prose of her form contract and a business process model workflow representing the legally relevant events that should be tracked within the Agreements Network. She purchases tokens to deploy the template. Because Beth wants to make this publicly available, she makes the template public on the network and places a price on the template. During the upload process Beth places an appropriate number of tokens into a bond within the network to upload the tokens to the network.
At the end of the quarter, Beth has sold 10 lease templates. Beth’s AN token balance reflects an increase in value via the use of the template within the network to create new active agreements. The template remains bonded as long as Beth would like that template to be available for use within the network.
Pleased with her results, Beth decides to create more templates within the system and to use the proceeds from her initial template to pay for a web developer to build a portal she can use to expose select land purchase agreements only to those she has properly KYC-ed within her to-be-built web portal. After the web developer delivers her portal, Beth then uploads additional templates into the Agreements Network, this time selecting to upload the templates as private and set the price to zero because she will be consuming the Active Agreements and she will leverage traditional billing system for these high end clients as part of the web portal.
Later, Beth decides to retire from practice and go into a different line of business. As part of closing her legal business she wants to remove all templates she has uploaded from the Agreements Network. To do so, she sends a signal to the network to remove her bond from each of the templates she produced.
The network calculates the amount of Beth’s bonded tokens that should be returned to her. It does so by understanding how many times each of the templates Beth wants to remove have been used. For those templates that have been used more than the minimum threshold set by the network Beth’s bond is returned to her in full.
Legal Product Testers
Martin is an experienced, licensed English commercial lawyer growing his practice with technology. Martin participates in the Agreements Network and purchases tokens for use on the network. Martin is able to browse uploaded and public legal products on the Monax platform.
He selects Beth’s lease template for testing. He examines the legal prose template, the parameters, and the business process model diagram. He also tests instantiating an Active Agreement created with the template. He agrees that the lease template is sufficient under English law, stakes a bond in tokens, thereby signaling to the network his approval.
At the platform level, tokens representing his stake are attached to the template, and the template is offered for sale. At the end of the quarter, Beth has sold 10 templates and Martin’s token balance reflects an increase in tokens in a pro-rata proportion to Beth. The bonded token remains bonded as long as Martin would like to signal to the network that Beth’s template is fit for purpose.
The Agreements Network includes natural checks and balances to support quality legal products. The ecosystem symbiosis of legal template design, manufacture, operations, quality assurance and market-making creates a growth environment. Agreements Network digital legal infrastructure harnesses reliable existing legal processes to create innovative products, opportunities and value.
In our upcoming blogs we explore the Agreements Network’s other ecosystem participants: network Validators, Services Providers, and of course, Customers. Stay tuned!
Find out more about the Agreements Network here.
Ready to get started? Head to docs.agreements.network for details.