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.
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.
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.