Original Author: Podium Team
Original compilation: H.Forest Ventures, 0x123
Recommended reason
Recommended reason: This article describes the necessity of the emergence of the ERC-721R contract standard and the purpose it wants to achieve, and then describes the working principle of the contract standard, and explains several typical problems about the contract, so that readers can better understand ERC-721R 721R contract standard.
After we proposed our newly adopted contract standard - ERC721R, we received very positive community feedback, and we would like to thank everyone who commented.
The core purpose of the ERC721R contract standard is to introduce basic consumer protection schemes to the NFT field we love. Because the unfortunate status quo is that the current NFT market is full of scams, running away with money, and stealing money. Every mature financial space should have basic protections for investors, and we believe this is critical for NFTs to enter the mainstream.
An important thing to note: We don't believe our solution is perfect, but believe the standard is an incremental improvement on the status quo. We have successfully accomplished our mission of initiating discussions on how to better protect investors and inviting every developer in the NFT space to suggest improvements to our contract standards. Next, let's dive into more details of this contract standard.
Contract standards to prevent money from running away:
working principle
working principle
The parameters in the contract are configurable, and the project party can adjust the parameters according to their specific needs. Podium NFT is about to enter the mint phase, the following is the Podium refund schedule:
0-2 weeks: Any NFT holder can choose to return the NFT and receive a full refund at the price at the time of minting. Podium has immediate access to royalty funds from the secondary market.
2-4 weeks: Podium is now able to use 20% of the total mint funds for project development. NFT holders can return the NFT and receive refund funds at 80% of the mint price.
4-6 weeks: Podium again receives 20% of the total funding of mint and proceeds with project development. NFT holders can return the NFT and receive refund funds at 60% of the mint price.
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Diagram of the podium refund schedule
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answer questions
While the vast majority of feedback has been positive, we're here to address some of the issues in the comments.
1. If investors invest in a scam, it is their own responsibility. Investors should do their research and invest in a team with a high market focus.
You can research a project using all the research methods in the world and then invest in a team with a flawless track record that has the most detailed roadmap in the field. However, even if the team has such a perfect record, it does not mean that they can completely resist the temptation to "do anything with mint funds without suffering consequences". It is easy for project parties to think that they have achieved success after the mint stage is over, but in fact this is just the beginning of the journey (similar to startups getting VC financing). There are countless project parties with high market attention who ran away with money. The main reason is that there is no regulatory agency to ask them to be responsible for the best interests of the project, and ERC-721R can bring us closer to the accountability system.
2. If the founders do not have immediate access to funds, the project cannot fulfill its promise to investors.
The parameters of the ERC-721R contract are configurable, allowing funds to be vested in the project or unlocked over time. Most projects will raise millions: set deadlines for vesting schedules, such as unlocking x% of funds every x weeks, which allows projects to use a certain percentage of funds to reach certain milestones. At the same time, achieving milestones can also give investors more confidence that the project party can realize its plan. And most of the projects that run away with money eventually return to 0: Compared with the return of investment to 0, ERC-721R can still return NFT and get 80% of the refund within a period of time after the project mint, which is beneficial to investors Said to be a big improvement.
3. If the floor price of an item falls below the mint price, people will immediately implement a refund.
This is true, and by design (feature, not bug). The NFT space has been struggling to find a suitable mint price discovery mechanism. Dutch auctions introduce "fomo" by exploiting investor psychology, often resulting in a floor price that is much lower than when the auction sells out (notable examples include Pixelmon and JRNY club). However, the market will ultimately determine the fair value of the project. Under the refund mechanism, if investors immediately return the NFT they minted, it means that the mint price is set too high.
epilogue
epilogue
andCryptofighters AllianceandCurious Addys. We are currently cooperating with Cryptofighters Alliance, they will work with us to write related articles on the ERC-721R contract, and we look forward to continued cooperation between the two parties in the future. We have yet to get in touch with Curious Addys, but we consider them pioneers and thought leaders in the NFT space and recommend readers to follow the Twitter accounts of these two allies.
We have a common mission:Make the NFT field more secure and make NFT mainstream。
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