Introduction

Double N Protocol establishes a new paradigm in entertainment IP utilization by creating an ecosystem where active community participation directly translates to tangible benefits. The protocol enables IP holders to maximize their content value while rewarding users who contribute to project success through various forms of engagement and community activities.

The Challenges of Traditional Finance

Traditional financial markets have long operated under centralized systems, ensuring efficiency in decision-making and accountability. However, these systems face significant challenges, especially in dynamic industries such as entertainment:

• Excessive Transaction Costs Centralized markets depend on intermediaries, inflating costs and complicating processes. Funding a film production, for example, involves multiple stakeholders such as lawyers, agents, and distributors, leading to increased fees and prolonged timelines.

• Barriers to Asset Securitization and Accessibility Real-world assets such as film production rights, intellectual property, and real estate are difficult to tokenize or securitize in traditional systems. Extensive screening processes, high entry barriers, and limited liquidity exclude minor investors and limit the industry’s growth potential.

• Limited Flexibility of Centralized Control Restrictions on trading hours, jurisdictional regulations, and operational frameworks hinder efficiency and cross-border transactions. This leads to delays in international projects and increased costs for global collaborations.

The Promise and Challenges of Decentralized Finance

DeFi offers transformative advantages over traditional systems by eliminating intermediaries, decentralizing asset ownership, and ensuring transparency through blockchain technology. However, it also faces challenges:

• Value Uncertainty and Price Volatility Many cryptocurrencies lack intrinsic value, leading to extreme price fluctuations that deter long-term investment in creative industries. Representative cases include the Terra-Luna collapse and FTX bankruptcy.

• Scaling Limitations While the crypto market is rapidly growing, it is still less utilized than traditional finance. For wider adoption, it must integrate real-world assets and attract institutional capital. Tokenizing assets such as film production rights or distribution revenues can unlock global investment opportunities and diversify the crypto market.