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Cinjon Resnick / Writing

Research Portfolio

We are excited to announce both Research Portfolio, a new way to fund research, and the Amaranth Prize, a $250k prize for longevity powered by Research Portfolio. The prize is supported by the Amaranth Foundation, an organization who has committed immense and crucial resources to longevity research.
To learn more about Research Portfolio, visit our FAQ or our Manifesto for details. This piece explains why we built a new funding layer for research, its design principles, and how it works. Contact support@researchportfolio.co if you have questions, comments, or suggested improvements.

TL;DR

We built a new way to fund research. It a) retrospectively funds b) the paper itself (rather than the lab) and c) additionally allocates a portion of the funding to a paper’s most important parent papers.
We call this Research Portfolio, and it is in spirit similar to the Retroactive Public Good Funding work proposed by Vitalik Buterin and Optimism. It is built on the Ethereum blockchain, which is vital because it enables philanthropists to trivially fund any distribution of recipients on the blockchain, even to authors who don’t have known Ethereum wallets.
Read on to learn about how research funding works today, why we built this, and details on our design choices. The bottom half enumerates the winners of the Amaranth Prize. Before we dive in though, let’s make one thing clear:
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There is no global Research Portfolio token. The organization behind Research Portfolio doesn’t make any money from the system and only receives tokens earmarked for influential papers. All tokens associated with Research Portfolio are minted by (or for) the authors to represent their papers.

Research, Startups, and the Value Chain

Here’s a very brief profile of Research’s profile:
  1. There’s a tremendous amount of uncertainty as to what will be worth publishing.
  1. There’s even more uncertainty as to what will rewrite textbooks, change the field, and be notable decades from now. Sometimes the Nobel winning science isn’t even accepted for publishing.
  1. Occasionally, research does change what society thought was possible.
  1. Along the way, scientists have to fund their work, but funding is:
    1. Exponentially biased to chase big discoveries and already hot areas, leading to mostly incremental research on top of the already found vein of new knowledge instead of to left field ideas that could be the source of the next big discovery.
    2. Most often sourced from groups that are surface knowledgeable (philanthropists) or have built-in conservatism towards the old ways;
    3. Limited.
This looks familiar. Let’s substitute startups for research:
  1. There’s a tremendous amount of uncertainty as to which (team, business) pairings will work well.
  1. There’s even more uncertainty as to what will be a huge outcome, change the course of humanity, and still be a big business decades from now.
  1. Occasionally startups do change what society thought was possible.
  1. Along the way, startups have to fund their work, but funding is:
    1. Exponentially biased to chase huge business potential and already hot areas, leading to mostly copycat businesses (“Uber for X”).
    2. Most often sourced from groups that are surface knowledgeable (venture capitalists) or have built-in conservatism towards the old ways (”who wants to stay in someone’s spare room???”).
    3. Limited … but exponentially less so than in research.
The biggest differences between research and startups are that startups are closer to where enterprise value is made and that startups have an exit at the end. In a Wardley mapping sense, research is the far left of the business evolution stage and startups are most often close to the custom/product divide. An investor in a startup is taking a bet that the payoff for committing capital will be high over a relatively short amount of time. On the other hand, a philanthropist may never even see the fruit of their input. They are doing it either because they love the cause or because they want more status or a host of other, less prominent reasons.
Humanity moves forward together: Startups learn from Research; Industry learns from Startups; Then Research learns from Industry. However, Startups and Industry deal in the same currency (money) while Research runs off of status. This is a consequence of the limited amounts of capital and positions in Research vs that of Startups and Industry.
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Research Portfolio is an effort to change that reliance on status and unite these different modes all under one banner. It is an effort to gift the Research community with a direct link to the funding that flows from end users through the value chain all the way back to research itself.

Fund Retrospectively.

From the perspective of the funder, most research funding models are prospective. This means that they issue a call for projects to fund in a certain domain, examine those projects for merit, and then decide what to fund. Our stance is that this status quo should change and that much more funding should be retrospective.
One reason is that funders have to guess what will be worth doing rather than the researchers in the trenches doing the work. Playing on Vitalik’s words, it’s easier to agree on what was impactful work than to predict what will be impactful. The latter is the job of a researcher and funders do a poor job of this.
Another reason is because prospective funding goes mostly to people based on reputation rather than on quality of [recent] work. This is known as the Matthew Effect.
And we absolutely know it should change because the research community has built paths around this approach. Most of the time, a prospective grant is responded to with work that’s already been done, but just not yet published. The grant funding is then used to work on the next pursuit. This is effectively retrospective funding where the funder is just kept in the dark.
From the perspective of researchers, the system is already retrospective but with extra work to maintain the illusion.
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Research Portfolio is retrospective. We are rewarding fantastic work after it’s been done. That is the only time when you know for sure that it’s impactful. It’s also the only time when you can slice and dice the funding precisely and with confidence fund tranches like “The best work in Algebraic Topology over the last 5 years performed by people of color in the American Southwest”.

How do researchers get started if we use retrospective funding?

One concern we often hear about retrospective funding is how do people get started in a system dominated by retrospective funding. While we aren’t positing the world where there’s no prospective funding, let’s examine this question.
Today, the most common route into a career in research is to apply to a lab and join as a PhD student, then spend an average of 3-5 years doing research under a professor from whose grant rewards the student is funded. After the student graduates, they either go do a postdoc, get a professorship immediately, or join a company. In all three scenarios, it’s because someone else - respectively another professor, a university, or a hiring manager - thought that the student did strong work and should join their team. That funding is retrospective. And from there on out, all of their funding is retrospective.
For example, once a professor starts at a university, the university gives them starter funds. This came because the university valued their prior work enough to hire them as a new professor. They then get grants based on more work that their lab does. Those grants might be declared as prospective, but as we detailed above, they are in practice retrospective.
In other words, retrospective funding doesn’t impact how researchers get started because the dominant amount of starter funding comes from universities and thereafter it actually already is retrospective in practice.

Fund Papers Directly.

When funders give money to research, they most often give to the Lab. In universities, this is represented by a specific principal investigator (PI), and a bunch of that money goes to the university itself. In companies, this is a specific team.
This funding is two levels too high.
The level below the Lab is the researcher themselves. The level below the researcher is the paper.
The unit of funding should be the paper and not the researcher or the lab.
A major benefit of this is that the funder can better harness their influence. A prize set up to reward recipients every two years for “Protein Aging” does not actually complete its stated purpose if it’s given generically to a lab because that funding could go to anything. The consequence is that funders apply stipulations on how the prize money can be spent.
This is counterproductive to how research works. Because outcomes are so hard to predict, researchers should have carte blanche to do with the money what they wish. The philanthropic influence on outcomes should come from the fact that the prize exists and runs consistently. That is sufficient because then that field will mature with the researchers who are most passionate and interested in that line of inquiry.
On the other hand, by giving to the works themselves, it frees up the researchers to follow their nose and be appropriately rewarded for doing so while simultaneously freeing up funders to focus their capital on the impact they care most about. When someone wants to fund a specific lab, that’s funding all the papers in that lab. When they want to fund a person, that’s funding all of their papers. This also serves to fund the people or that lab works with, which is correct. No one does it alone and funding should recognize that.
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Research Portfolio funds the papers directly. Authors get a share of that funding based on whether they were a first author, middle author, or principal investigator. They can claim this easily through our interface.

Fund the Tree.

Research depends on the shoulder of giants. There is hardly any paper that was made in a vacuum, but rather borrows from a select set of prior work. We think that this work can be distilled to at least one and at most five papers, and those parent papers should receive a chunk of funding that goes to a given paper. Moreover, this is recursive.
An important reason why is that there are very important works that are not flashy but just as necessary for the flashy work. An example are the methods and hardware papers in biology. They get many citations because they are crucial to downstream papers, but no one in the public eye or philanthropic circles are dying to talk about or fund a new tool. That is true even if the tool leads to breakthroughs like CRISPR.
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Research Portfolio requires that authors tell us a small number of papers upon which their work depends (min one, max five), as well as the percentage weight amongst those parent papers. Then twenty percent of any funds they receive are given proportionally to those parent papers. This happens recursively.

Research Portfolio

The above builds up to what we’ve created - Research Portfolio. Our motivations were to create 1) a platform for granting retrospective rewards 2) to the papers themselves that 3) gave proper due to the research tree and 4) was easy to extend to other use cases.
Further, these motivations suggested building this on blockchain (Ethereum) and smart contracts for three reasons:

How does Research Portfolio work?

Our system is designed to make it easy to mint paper-specific tokens on Ethereum Mainnet representing research. On our website, there are faculties for minting anyone’s paper as a token, for viewing already minted papers, for seeing your balance of tokens, and for claiming tokens that you deserve. In the spirit of other public goods on the blockchain, all of this is also available by directly manipulating the contracts on Etherscan or similar.
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Reminder: There is NO global Research Portfolio token. There are only paper-specific tokens either minted by an author or condoned by them.
An experiment in improving research processes Every minted paper is a fungible token, known as an ERC20. This allows for anyone to experiment with other needed improvements to research. Examples include better processes for replication, for challenging results, and for supporting underrepresented communities. It also allows for easy interoperability with the immense scaffolding and capabilities already built in Ethereum.
Respecting prior work When an author mints one of their papers as a token on our website, www.researchportfolio.co, they receive 80% of the tokens. The other 20% are distributed to the papers (min one, max five) that most influenced their work. The author specifies these influential papers and their corresponding influence percentages when minting. For influential works that aren’t yet minted, we hold their rewards in our Safe and promise to deliver upon minting. For those works that are already minted and verified, we do a real-time search for who owns those tokens, aggregate them by allocation, then automatically distribute the new tokens to those owners in accordance with their allocation. This is done via a Merkle Distribution, originally made famous by Uniswap’s airdrop as a low-cost way to distribute and claim funds.
Recursive respect for prior work What we described above works recursively. If I mint a paper paying heed to paper A with the full 20% allocation, and then another paper mints one granting my paper 10% of its tokens (50% of the 20% allocation), then the holders of A receive a proportional allocation of 2% of that paper. In this way, papers that are very influential but not necessarily that flashy get their due. Methods and equipment papers exemplify this well.
How does verification work? Anyone can mint any paper. We can’t and shouldn’t stop people from doing this. For one thing, it means that external services can help mint papers without the authors having to do it themselves. Instead, we act as the vigilant service in charge of ensuring that verification is bestowed only on papers with proper provenance. In other words, we arbitrate whether a token has been certified by a first author or principal investigator as a representative paper. This is trivial on open journals like Arxiv where the token hash can be pasted into the comments field and only the submitting author can make such changes. We look forward to the day when other journals are as easy to add supplementary information. In the meantime, we rely on the fact that DKIM signatures in email are in broad use today, and every reputable paper has an accompanying contact email. When we need to make such provenance clear, we’ll do so with services like ZKEmail.
Fixed paper allocation At the time of minting, 20% of the tokens go to prior work and the remaining 80% go to the authors. That latter 80% is arranged so that first authors split 70%, middle authors 10%, and principle investigators 20%. If a middle author was to get more than a PI or a first author, then the allocation is adjusted so that they get the same amount. This arrangement was decided after talking with researchers from a range of different fields. By making it uniform, the decision is on us instead of the minting author. The one field where we heard pushback on this arrangement was Economics where there were some calls for strict equality.

ERC1155, ERC20, and Placeholders

We built a version of Research Portfolio where the tokens were both ERC1155s and ERC20s. The original motivation for this was to get the benefits of interoperability with the immense infrastructure built for the fungible parts of Ethereum, as well as discoverability on platforms like OpenSea. This required a little bit of finessing the contracts to work together, but it worked well! One caveat was that MetaMask would no longer recognize the contract as an ERC20 by default, but insisted on it being an NFT and going in its NFT section; users would have to manually click our “Add Token” button to change this.
To be clear, we don’t mean that it served as both in every situation. That would be hard to, for example, exchange fractional ownership of the fungible part and still preserve the right amount of the non-fungible part. Instead, there was a fungible mint and a non-fungible mintBatch. The former created ERC20 tokens used for trading on exchanges. The latter created ERC1155 tokens called “Placeholders” for both authors and reference papers. For each author, a Placeholder was minted so that their share, as well as recursive shares of child papers, could accumulate at that address. These were all given to the minter and they would distribute the Placeholders to the respective authors. We had a similar approach for minting reference paper Placeholders for those papers that weren’t yet minted or verified.
An important point to note was that it was a step in the direction of removing the Research Portfolio organization as a trusted third party. This isn’t just crypto ideology; it’s actually ideal from the perspective of having a public good that can stand on its own in perpetuity without us involved.
So why did we cull this in the end design? The answer is that while it was a great step towards the system being a self-serving public good, it also was a worse user experience. It required that after researchers verify their papers, they then attain from us an ERC1155 NFT. They could use this NFT to issue a claim on the accumulated tokens due to their paper. This was nice in the abstract because it means that all of their unclaimed tokens could accumulate at the NFT, then we could just send them the NFT upon (ideally automated) verification and they could handle the remaining step. However, it was not a good experience for researchers who 99% of the time just want the funding and recognition, but not the hassle. They would rather just be given their tokens, which we can do in a batch send assuming the accounting is taken care of. We handle that accounting with an IPFS trail that’s extended with each mint.

Amaranth Prize: Powered by Research Portfolio

The Amaranth Prize is our first go at implementing research prizes on the blockchain. Supported by the Amaranth Foundation, it rewards a subset of Longevity - protein aging - with $250k in retrospective funding. This incredibly important area of study is underserved through normal channels and we’re extremely proud to be able to support it on our platform.
The process was thorough. We brought together a panel of experts in the field spearheaded by Dr. Aaron Cravens, which also included esteemed Professors Claudio Hetz, Collin Ewald, Evan Williams, and Vincent Monnier. We then aggregated more than 3,000 papers in the domain since 2015 before adding any papers that our panel deemed to also be worthy, and then collectively pared those down to a shortlist. We trimmed this shortlist down further, concluding with our incredibly deserving fifteen selected winners. These are listed prominently at the Amaranth Prize website and below in their entirety. Of them, fourteen graciously accepted while one humbly declined the prize money.
While doing this, we learned a hell of a lot on how to manage this process. Our plan from here forward is to a) ensure that the recipients receive their rewards, b) onboard parent papers, and then figure out how to more scalably support other prizes and challenges.
If you are one of those parent papers, contact us at support@researchportfolio.co to ensure that you receive your due funding.

Winning Papers

Thank you

Nothing like this is accomplished without a village. While Adam and I built Research Portfolio to today’s milestone, we were aided along the way by fantastic people who gave their time and energy.
These include Yi Sun (Axiom), Tyler Gordon (BigBinary), Will Wolf (Gauntlet), Aayush Gupta (ZKEmail), Will Whitney (DeepMind), Vincent Weisser (Molecule), Evan Miyazano (Protocol Labs), Darren Zhu (Atoms), Curtis Spencer & Avichal Garg (Electric Capital), Jess Lin (Musician, Writer, Friend), Michael McCanna (Immunefi), Shazow (Crisis), and Brent (Crisis).
These also include organizations. Immunefi and Composable Security were clutch in helping us vet the security of the contracts. Privy’s embedded wallet solution was exceptionally timely. And Studio Rodriguez was instrumental in helping with design.
Most of all, thank you to the Amaranth Foundation and to Blueprint Forest for your ongoing and generous support.