title: NFT Future Rewards (nFR) Standard
description: A multigenerational reward mechanism that rewards all owners of non-fungible tokens (NFT).
author: Yale ReiSoleil email@example.com, dRadiant (@dRadiant), D Wang, PhD firstname.lastname@example.org
discussions-to: EIP-5173: Non-fungible Future Rewards Token Standard
type: Standards Track
requires: 165, 721
In this EIP, we propose the implementation of a Future Rewards (FR) extension which will enable owners of EIP-721 tokens (NFTs) to participate in future price increases after they sell their tokens.
Through the implementation of EIP-5173, the creators, buyers and sellers create a giving circle in trading practice. A giving circle is formed when all participants work in a framework to build greater wealth through each other’s success. One does not expect the same amount of return from the same person when they give someone a portion of their profits. There is no quid pro quo. Rather, they are confident that someone else in the same circle will give them the same benefits, with a smaller or greater monetary value, from other participants in the same circle later on.
Owners of the EIP-5173 compliant tokens can benefit in two ways from such a gift economic framework:
- An increase in price during their holding period;
- They continue to receive Future Rewards (FRs) after the token is sold.
The realized profits from the sale of the EIP-5173 compliant tokens will be shared across the chain of historical ownership if the seller is not the original Minter and therefore not the very first seller. Through the NFT Future Rewards (nFR) framework, the same seller, as well as every other seller, will receive the same FR distributions. Everybody pays it forward, forming a giving circle.
Giving circles are groups of people who work together to improve a situation that is typically much larger than it is at the moment. Some of the characteristics of a giving circle are community interdependence and delayed reciprocity.
In a well-designed circle of giving, givers may be able to receive more than they give over time, so giving is not the only thing involved. As a result, the traditional model of platform versus user and user vs. user relationships has been fundamentally altered into one, shared objective: if others succeed, I succeed more.
EIP-5173 establishes a standard interface for a profit sharing framework in all stages of the token’s ownership history desired by all market participants. In a giving circle, art buyers/owners are compensated for their participation in the instrument’s trading price discovery process.
We embrace and promote a new gift economic model, which is similar to the Copyleft and open-source spirit as opposed to traditional copyrights. The advancement of technology has enabled such implementation in trading for the first time. In the same way that open-source software has changed the software industry and society, we can also change the financial industry.
As in trading, most traders lose money, but the proposed Future Rewards framework is designed to help average traders do better.
Additionally, as we will explain later, it discourages any “under-the-table” deals that may circumvent the rules set forth by artists and marketplaces.