Non-fungible Future Rewards Token Standard

Simple Summary

This proposal outlines the structure of a new ERC721 standard extension. This will enable an NFT to define, process, and pay rewards to former owners of multiple generations based on realized sales profits.

Abstract

This Ethereum Improvement Proposal (EIP) defines a new token standard that allows ERC721 non-fungible tokens (NFTs) to reward previous owners. Through the Future Rewards system (FR), buyers and owners can capture a portion of future price increases after they sell.

Motivation

Do you want to find something that may be valuable in the future and get it early? Eventually, however, you are in dismay watching the price keep on rising after you sell, regardless of whether you are a diamond hand hodler or a paper hand buyer.

What if you were also rewarded with future increases in price after you sell it?

“Who owned it” is often crucial to the provenance and value of a collectible. It is therefore desirable, for all, to be rewarded retrospectively for their reputation and early contribution to the discovery of price.

In contrast to art and collectibles in the real world, however, the owners’ contribution to an NFT’s value is ignored in the current practice. It is the ERC721 token standard that makes such a Future Reward program possible, as every change in the price of any particular NFT token can be tracked.

In building a new platform to reward both creators and buyers, we would like to make this feature available as an EIP so that it can benefit everyone. By implementing such a fair practice, a marketplace can attract early buyers for better price discovery and by rewarding buyers and the new owner of the NFT, it discourages any sort of “under the table” dealings that circumvent the royalty payout rules set by the artists and the marketplace.

I greatly appreciate your feedback. We are also looking for contributors to our platform.

Friends warned me that nobody was talking about compensating buyers/owners. So this is not a popular topic. The traditional practice is to reward the creators. And that’s exactly the point, isn’t it? To reward those who contributed to the price discovery process as well.

The word “Ponzi” is being discussed a lot on Twitter these days. Someone asked me, “doesn’t your future rewards sound like a pyramid scheme?”?

Not at all. A Ponzi scheme is a scheme that promises a constant, high-yield return that is unpredictable and cannot be guaranteed. Our reward system is based on the realization of profit sharing that rewards people for participating in the early stage of price discovery, and being rewarded by future price gains for performing the same function.

Before we make the PR on GitHub, I would appreciate more discussion, questions, and suggestions.

Thank you!