A significant transformation may be underway in the convergence of artificial intelligence (AI) and blockchain, as Avalon Labs, backed by YZi Labs and Framework Ventures, has introduced a comprehensive framework aimed at redefining how AI systems are developed, distributed, and monetized. The initiative, detailed in the company’s newly published whitepaper, outlines a blockchain-based marketplace that allows AI models to function as digital assets — tokenized, tradable, and accessible on-chain.
AI Models as Tokenized Services
Avalon Labs’ concept revolves around the notion that pre-trained AI models can exist as autonomous blockchain resources. These models, rather than being confined to centralized platforms or cloud environments, can be directly accessed, leased, or purchased by users through decentralized protocols. The company refers to this approach as AI-Model-as-a-Service (AI-MaaS), a mechanism intended to democratize AI access by removing barriers related to infrastructure, computational resources, and technical expertise.
Instead of renting GPU capacity, as is standard in the current AI ecosystem, users will be able to utilize ready-to-deploy models optimized for specific applications. These tokenized AI assets, initially trained on H200 GPU hardware, are designed to provide enterprise-grade performance. They can be integrated into smart contracts, decentralized applications (dApps), and research workflows, enabling seamless interoperability between AI and blockchain infrastructures.
Commercial Rights Tokenization: Legal Rights on Blockchain
Beyond computation, Avalon Labs is also reimagining how legal frameworks operate within decentralized systems. The company has introduced Commercial Rights Tokenization (CRT) — a model that tokenizes legal permissions rather than ownership stakes. Each CRT represents a legally enforceable right to use, rent, or access a particular AI service, recognized under the Uniform Commercial Code (UCC) Articles 7, 9, and 12 in the United States.
This approach grants token holders real-world enforceability over their digital rights, effectively bridging the gap between blockchain’s automated contract execution and traditional legal systems. By embedding commercial compliance within smart contracts, Avalon’s CRT model provides institutions with a regulated, legally sound entry point into blockchain-based markets.
Today, we’re excited to announce the official release of our Whitepaper for the industry’s first on chain AI-backed RWA marketplace and AI-Model-as-a-Service (AI-MaaS). The exclusive initial launch on @BNBCHAIN!
This marketplace is open to all GPU hardware owners and AI model… pic.twitter.com/1StYiyToN4
— Avalon Labs (@avalonfinance_) October 30, 2025
A Two-Tier AI Finance System
The Avalon marketplace introduces a dual financial structure inspired by conventional debt markets. It features two main allocation tiers:
Senior Allocation (sAI): Aimed at institutional or conservative participants seeking predictable and stable access to AI compute resources.
Junior Allocation (jAI): Geared toward users pursuing higher returns during periods of increased model demand, offering a structure more aligned with decentralized finance (DeFi) dynamics.
Both allocations represent rental rights to AI model access rather than speculative ownership of tokens. This format combines the predictability of traditional finance with the flexibility of decentralized systems, turning compute access into a yield-generating digital asset.
Risk Management and On-Chain Transparency
The whitepaper emphasizes Avalon’s focus on risk control and liquidity management. It outlines mechanisms for automated monitoring, redemption scheduling, and transparent reporting — all secured on-chain. These built-in safeguards aim to maintain accountability as AI services evolve into financialized blockchain entities.
By ensuring transparent data trails and verifiable usage rights, the model addresses one of the biggest challenges in both AI and DeFi sectors — balancing innovation with compliance and security.
Building a Unified Digital Economy
Avalon’s broader vision extends beyond technical innovation. The company aims to establish a new class of decentralized financial infrastructure where AI models, legal rights, and digital tokens coexist within a single interoperable layer. If successful, this system could pave the way for a self-sustaining economy where artificial intelligence is not just a tool but an integrated component of financial networks.
By merging AI capability, blockchain transparency, and legally enforceable digital rights, Avalon Labs positions itself at the forefront of a new digital era. Its approach blends innovation with practicality — envisioning a future where artificial intelligence doesn’t merely power global systems but becomes an integral, tokenized part of them.
