The challenge on royalties
Today it is almost impossible to enforce royalties on any NFT collection, unless said collection is locked on a specific marketplace — which is undesirable in itself and lead to unhealthy battles as recently observed. Since there is no way to compete with any 0% fee policy marketplace alternative, Opensea recently had to shift to optional fees. Similarly, Blur’s free trading policy forced Opensea to temporarily implement a 0% marketplace fee.
Therefore creators and marketplaces are inevitably left in the dust, so to speak. That is because there is no way to restrict a transfer at the protocol level, and intentionally so (censorship resistance). In other word, off-the-radar trade is king and a commissioned trade is reduced to ethics.
As the infrastructure evolves according along our needs, nuances appear upon challenges. Perhaps for certain type of issued tokens, a layer of restriction is not bad idea?
Following closely the ERC-4377 Standard
“One of the most challenging parts of collecting and trading NFTs is how hands-on you have to be. Tracking metrics, timing mints, analyzing floor prices — they all require a near-constant effort.
However, ERC-4337 allows for automated trading, including a monthly spend limit, AI trading, and adjusting yield farming positions. These features can make trading NFTs much easier and more accessible for users of all levels.” from NFTnow.
Going further in that logic, it’s possible that this new format helps resolve the issues mentioned prior. Indeed conditions on transfer could be determined in the smart contract wallet itself, from the go. It would likely be incompatible with legacy account wallets, but it would remain on rails that would be more tightly controlled and customized to specific needs.
Subscription model approach
Essentially, this will allow a true subscription model, which we plan to leverage as soon as it matures. More to come on this.
The idea is to combine sustainability of a project with true long-term ownership for the members. A proper balance is essential here. A forever all inclusive type of NFT would not provide any realistic mean for the project to sustain itself, let alone further development. On the other end of the spectrum, a monthly or even yearly renewal subscription would not provide any long term ownership or feel of a true inclusion.
There I propose a middle-ground approach, perhaps leaning more toward the ownership spectrum as it is where my true motivation lies: granular layers of evolution.
- A foundational membership that lasts forever. Will explain this further.
- A yearly adjustment membership to remain up-to-date with latest additions. Will explain this further.
- An extra VIP membership for additional perks. Will explain this further.
Note: I wrote the above as part of another project of mine, DM if interested in more details.
