eip: 5173
title: NFT Future Rewards (nFR) Standard
description: A multigenerational reward mechanism that rewards all owners of non-fungible tokens (NFT).
author: Yale ReiSoleil yale@iob.fi, dRadiant (@dRadiant), D Wang, PhD david@iob.fi
discussions-to: EIP-5173: Non-fungible Future Rewards Token Standard
type: Standards Track
category: ERC
status: Draft
created: 2022-05-08
requires: 165, 721
Abstract
This proposal introduces the Non-Fungible Future Rewards (nFR) framework, extending ERC-721 tokens (NFTs) features to let token holders benefit from value appreciation after transferring ownership. By integrating cooperative game theory, it aligns stakeholder incentives, addressing inefficiencies in asset transactions. The framework fosters collaboration, transparency, and equitable profit sharing. It improves equity and efficiency, recognizes all ownership stages, and establishes a cooperative asset transaction model.
Motivation
Traditional financial markets are often characterized by inefficiencies, opaque practices, and systemic imbalances, resulting in significant disadvantages for the majority of participants. Although blockchain technology offers transaction transparency, current implementations do not adequately facilitate equitable value sharing or participant alignment. This proposal addresses these gaps by introducing structured collaboration and a fair compensation system, ensuring equitable rewards for contributions to asset value.
Framework Components
The Flow mechanism
Each EIP-5173 token maintains an immutable record of ownership and price transitions, creating a dedicated network of historical token owners. This unique community collaborates to generate additional value and maintains vested interest in the project or token even after selling, ensuring contributors benefit from the asset’s appreciation. This mechanism promotes collaborative value creation, equitable profit sharing, and a connected financial ecosystem, distinct from traditional financial market systems.
Cooperative Value (Future Rewards) Distribution
The nFR framework transforms the zero-sum financial equation:
P(A) + P(B) + F ≤ 0
Where:
- P(A): Profit of trader A
- P(B): Profit of trader B
- F: Transaction fees, friction costs, and operational expenses
into a collaborative model:
P(A) + P(B) + F + FR > 0
Where:
- FR: Shared value creation through cooperative mechanisms
This model incentivizes fairness and rewards contributions throughout the asset lifecycle.
https://github.com/dRadiant/EIPs/blob/master/EIPS/eip-5173.md