title: ERC-7648: NFT Recursive Synthesis Asset Standard
description: NFT Recursive Synthesis Asset Standard
author: MUAdao contact@muadao.build
status: Draft
category: ERC
created: 2024-03-04
requires: ERC-165, ERC-721
Abstract
The ERC-7648 standard introduces a recursive synthesis mechanism for creating new NFT assets by combining existing assets from ERC-20, ERC-721, ERC-1155, and ERC-4242 standards. This facilitates the creation of complex asset synthesis, recording the ancestry, royalty information, synthesis depth, and price of each new asset. It ensures creators and previous asset holders receive royalties upon the creation of new assets, fostering innovation and rewarding contributions in the NFT ecosystem.
Scope & Motivations
Recently the emerging popularity of Ordinals protocol on BTC enables the characteristic of assets synthesis and composability, and brings the imitations on Ethereum such as Ethscriptions
as well. While inscription of NFT or FT assets by op codes on the bitcoin blockchain is a compromise for lack of composable smart contract there. The purpose of ERC-7648 proposal is to bring this concept of assets synthesis and composability of assets in a technical way of native ERC token smart contract for native ERC assets such as ERC 721, or 165 etc.
ERC-7648 also includes a function of recursive royalty mechanism to incentivize the creative combination and synthesis of existing native Ethereum digital assets to create new ones which ensures fair compensation for all contributors, attracting more existing and new digital assets into Ethereum ecosystem sustainably.
Specification
The key words “MUST”, “MUST NOT”, “REQUIRED”, “SHALL”, “SHALL NOT”, “SHOULD”, “SHOULD NOT”, “RECOMMENDED”, “NOT RECOMMENDED”, “MAY”, and “OPTIONAL” in this document are to be interpreted as described in RFC 2119 and RFC 8174.
pragma solidity ^0.8.20;
interface ERC7648 {
function royaltyInfo() external view returns (uint8);
function ancestorTokenLength() external view returns (uint256);
function ancestorToken(uint256 index) external view returns
(address contract_address, uint8 asset_type, uint256 token_id);
function depth() external view returns (uint256);
function price() external view returns (uint256);
}
Use Cases
Use Case 1: Multi-Generational IP artwork Creation and Royalty Distribution
Scenario Description
This use case explores the potential of the ERC-7648 standard in the realms of artistic creation and royalty distribution. It begins with an artist creating a unique digital artwork based on the ERC-721 standard. Utilizing the ERC-7648 standard, this artwork undergoes transformation and upgrading, merging with other artists’ works to produce a brand new composite artwork. This process is not limited to simple combinations of 2D artworks but also includes transforming existing NFTs into more complex and interactive 3D versions, and even splitting them into thousands of shares for broader sharing and ownership.
To illustrate with a specific example, a Bored Ape Yacht Club (BAYC) NFT, #2231, originally a popular 2D piece, is transformed by an artist through the ERC-7648 standard into a 3D version and further split into 1000 shares. This allows multiple investors to co-own this unique digital asset and share in its appreciation.
Implementation
- The first-generation artist creates an ERC-721 artwork, such as BAYC #2231.
- A second-generation artist utilizes the ERC-7648 standard, combining their creativity to transform this piece into a 3D version, splitting it into 1000 shares.
- Over time, additional artists can join this process, using the ERC-7648 standard to integrate new creative elements into the existing art chain, creating more layers of composite artwork.
Value Proposition
- Innovation Incentive: The ERC-7648 standard encourages artists to innovate continuously by combining existing artworks and creative elements to create new, value-added composite artworks.
- Fair Revenue Distribution: Whenever a new composite artwork is created and sold, all artists involved in its creation and evolution receive royalties defined by the ERC-7648 standard. This includes the original NFT creator, the artist who transformed it into 3D, and any subsequent artists who contribute to the creative process.
This use case demonstrates how the ERC-7648 standard can foster diversity and innovation in artistic creation while ensuring artists receive fair compensation as their work generates economic value. Through this mechanism, ERC-7648 introduces new collaborative models and economic dynamics to the digital art and NFT domain, sparking interest and enthusiasm among artists and investors for innovative digital assets.
Use Case 2: In-Game Item Synthesis & Trading
Scenario Description
In a blockchain-based game, players can collect various NFT items, such as weapons, armor, or magical items. With ERC-7648 , players can synthesize these different items into new, more powerful items, which are also NFTs and tradable in the market.
Implementation
- Player A has an ERC-721 magic sword and an ERC-1155 rare gem.
- Using ERC-7648, Player A synthesizes these items into a new, unique magic sword NFT with special abilities.
- The newly synthesized magic sword retains information about its ancestor items, and when further traded or synthesized, the original item owners receive royalties.
Value Proposition
- Increased Game Depth: Allows players to create unique game items through synthesis, adding depth and strategy to gameplay.
- Economic Activity Boost: The recursive royalty mechanism encourages player participation in the game economy, increasing item circulation and economic activity within the game.
Royalty Distribution Mechanism
ERC-7648 implements a mechanism for distributing royalties to all stakeholders in the asset chain upon the minting of a new asset, ensuring a specified percentage of the new asset’s price is distributed to each ancestor asset holder based on recorded royalty information.
Events
- AssetCreated: Emitted when a new ERC-7648 asset is created, including the new asset’s address, ancestor assets’ addresses, and the new asset’s price.
- RoyaltyPaid: Emitted when royalties are paid to ancestor asset holders, including the beneficiary’s address, the royalty amount, and the new asset address triggering the royalty payment.
Conclusion
ERC-7648 aims to revolutionize the NFT ecosystem by enabling recursive asset synthesis, fostering creativity, and ensuring fair compensation for creators and asset holders. This standard opens new possibilities for asset creation and ownership, enriching the digital asset landscape.
Copyright
Copyright and related rights waived via CC0.