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Create AEPLicense #1851

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Nov 22, 2024
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Create AEPLicense #1851

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Create AEPLicense
shughesocl Nov 21, 2024
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fix: add .mdx expension
anegg0 Nov 21, 2024
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fix: fix fontmatter title
anegg0 Nov 21, 2024
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feat: add to sidebar
anegg0 Nov 21, 2024
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fix: re-format
anegg0 Nov 21, 2024
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22 changes: 22 additions & 0 deletions arbitrum-docs/launch-orbit-chain/AEPLicense
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---
title: 'The AEP License'
sidebar_label: 'Orbit Licensing: overview'
description: 'Learn about the Orbit license and AEP.'
author: SHughes
sme: SHughes
user_story: As a prospective Orbit chain owner, I need to understand the Orbit license.
content_type: get-started
---

## What do I need to know about the Orbit license?

Nitro is currently licensed under a [Business Source License](https://github.com/OffchainLabs/nitro?tab=License-1-ov-file), similar to DeFi protocols like Uniswap and Aave, among others, with an “Additional Use Grant” to ensure that everyone can have full comfort using and running nodes on all public Arbitrum chains.

The Additional Use Grant also permits deployment of the Nitro software in a permissionless, zero-cost fashion, as a new blockchain provided that the chain settles to either Arbitrum One or Arbitrum Nova. L3s that settle to Arbitrum One or Nova have no obligation to share revenue with the Arbitrum DAO and remain first class members of the Arbitrum ecosystem.
As an expansion of this license, the [Arbitrum Expansion Program](https://docs.arbitrum.foundation/aep/ArbitrumExpansionProgramTerms.pdf) (AEP) is a self-service licensing model that makes it easy for developers to build and customize L2s/L3s using Arbitrum’s technology alongside different parent chains.
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The Additional Use Grant also permits deployment of the Nitro software in a permissionless, zero-cost fashion, as a new blockchain provided that the chain settles to either Arbitrum One or Arbitrum Nova. L3s that settle to Arbitrum One or Nova have no obligation to share revenue with the Arbitrum DAO and remain first class members of the Arbitrum ecosystem.
As an expansion of this license, the [Arbitrum Expansion Program](https://docs.arbitrum.foundation/aep/ArbitrumExpansionProgramTerms.pdf) (AEP) is a self-service licensing model that makes it easy for developers to build and customize L2s/L3s using Arbitrum’s technology alongside different parent chains.
The Additional Use Grant also permits the deployment of the Nitro software in a permissionless, zero-cost fashion as a new blockchain, provided that the chain settles to either Arbitrum One or Arbitrum Nova. L3s that settle to Arbitrum One or Nova have no obligation to share revenue with the Arbitrum DAO and remain first-class members of the Arbitrum ecosystem.
As an expansion of this license, the [Arbitrum Expansion Program](https://docs.arbitrum.foundation/aep/ArbitrumExpansionProgramTerms.pdf) (AEP) is a self-service licensing model that makes it easy for developers to build and customize L2s/L3s using Arbitrum’s technology alongside different parent chains.


Benefits:
- Leverage battle-tested technology to permissionlessly deploy L2s/L3s that settle to any supported parent chain.
- Governance freedom - Orbit chains are not required to be governed by the Arbitrum DAO.
- Flexible licensing allows developers to modify chain configurations. Orbit chains are free to modify any part of the stack, including implementation of custom gas tokens, alternative DA integrations, novel sequencing mechanisms, account abstraction, altVMs, etc.
- L3s that settle to parent chains other than Arb1 and Nova must contribute [net chain revenue](https://docs.arbitrum.io/launch-orbit-chain/how-tos/calculate-aep-fees#calculating-aep-fees), where 8% flows to the DAO and 2% to the developer guild.
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