Vleppo and Tokel make NFT rights legally enforceable

The provider of blockchain solutions Vleppo has invented a way for NFT holders to establish and activate their legal rights that are allegedly inherent in their tokens.

To marry NFTs with traditional contract law

A long-standing problem facing the blockchain world and NFT owners is the apparent lack of contractual clarity and legal rights in the enforcement of digital asset transactions. Today, Vleppo and Tokel have successfully implemented a groundbreaking digital procedure that will pave the way for the blockchain industry and NFT owners to establish and enable their legal rights enshrined in the NFTs and digital transactions to be made legally enforceable in the courts around the world.

Vleppo was founded in 2018 and is a Web3 provider of blockchain solutions. The applications have been focused on developing a Blockchain integrated package with business tools for freelancers, SMEs and companies. Tokel is a platform that uses unique nSPV technology to deliver a simple, fast and easy-to-use Blockchain NFT and token creation system.

In June 2022, Vleppo developed a Blockchain Contract Management System (“CMS”) that enables NFT owners to create a digital contract by embedding NFT’s on-chain ID directly into the Blockchain record of the same digital contract.

Through this process, NFT can now act as an unchanging anchor of evidence for the digital contract, to always link the two together. This link is easily observable because Vleppo’s Blockchain system, called Alysides, which is a custom fork of the Komodo protocol, is both public and unlicensed.

Komodo is a community-oriented project, consisting of a customized version of the Bitcoin protocol (known as the Komodo protocol) as well as a blockchain running on the Komodo protocol.

For the first time, this Vleppo solution has finally addressed the long-standing concern of the blockchain industry and NFT owners about the lack of clarity about the law enforcement of smart contracts related to NFTs.

According to Chris Sloan, Chairman of the Emerging Companies Team at the American law firm Baker Donelson:

“The concept of, for example, embedding an NFT of a song in a Ricardian contract that defines a user’s rights with respect to that song is a nice combination of the benefits of an NFT in terms of being able to track the distribution of a digital asset that that with traditional contract law. “

In order for a contract to be legally enforceable, it must fully satisfy the elements of (1) offer (2) acceptance (3) consideration (4) capacity of the contracting parties and (5) an intention between the parties to establish and be bound by legal relationship .

The first three elements are fulfilled by any smart contract. However, legal problems arise when trying to demonstrate that both parties intended to establish legal relations and / or have the capacity to enter into contracts.

This is because current smart contracts in isolation are not able to definitively confirm that these qualitative elements of a legally enforceable contract are met. Therefore, it is common practice for smart contracts to be accompanied by a separate natural contract.

In comparison, a digital contract or smart contract executed in Vleppo CMS, where the ID of the NFT is built into the Blockchain record of the contract, ensures that the link between NFT and the underlying contract cannot be broken.

The Vleppo solution is Blockchain agnostic as this unique solution improves the legal enforceability of NFT owners, regardless of whether NFT is on Ethereum, Polygon, Solana or any other Blockchain.

Furthermore, due to the superior design of the Komodo Protocol and the lack of reliance on “gas-style” transaction fees, Vleppos CMS can meet even the most complex contractual arrangements in a reasonable and efficient way compared to other popular protocols, such as Ethereum.