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## Abstract

In this EIP, we propose the implementation of a Future Rewards (FR) extension which will enable owners of [EIP-721](./eip-721.md) tokens (NFTs) to participate in future price increases after they sell their tokens,resulting in more for you is also more for me.
This Ethereum Improvement Proposal (EIP) proposes the implementation of a decentralized protocol for non-fungible Futures Rewards (nFR) that allows owners of [EIP-721](./eip-721.md) tokens (NFTs) to continue participating in future price increases even after selling their tokens. The nFR proposal creates a win-win scenario for all participants, fostering a community-driven and interdependent ecosystem that rewards all contributors. The protocol enables creators, buyers, and sellers to form Flows in trading practice, allowing participants to build greater wealth through each other's success.

Through the implementation of this nFR proposal, the creators, buyers and sellers create a Giftchain in trading practice. A Giftchain 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 chain of ownership (the Giftchain) will give them the same benefits, with a smaller or greater monetary value, from other participants in the same Giftchain later on. Profit-sharing protocols are resilient due to the uncertainty regarding future payments. The mechanism itself is certain and unchangeable on-chain, but the value of each payment is uncertain.
The nFR proposal is a decentralized profit-sharing protocol that eliminates the fixed rate Ponzi scheme, making it less susceptible to market downturns. The uncertainty regarding future payments creates a self-regulating mechanism that incentivizes participants to focus on long-term success rather than short-term gains, promoting a collaborative and cooperative environment. This creates a resilient ecosystem that is less susceptible to external shocks and bad actors.

Owners of nFR compliant tokens can benefit in two ways from such a gift economic framework:
When a token is sold, the seller can expect to share in the future growth of the token from future owners who have made a profit on the same token, contributing to the token's provenance and price-discovery process. The nFR proposal provides a clear and defined way for creators, buyers, and sellers to participate in a decentralized profit-sharing ecosystem that benefits everyone involved.

1. An increase in price during their holding period;
2. They continue to receive Future Rewards (FRs) after the token is sold.
Owners of nFR-compliant tokens can benefit in two ways from such a shared economics framework. First, If the price increases during their holding period, they will benefit. Second, they continue to receive Future Rewards (FRs) after the token is sold. The realized profits from the sale of nFR-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 nFR framework, the same seller, as well as every other seller, will receive the same FR distributions.

The realized profits from the sale of nFR 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 giftchain, 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.
Flows are groups of people who work together to improve a situation that is typically much larger than it is at the moment, and the characteristics of a Flow are community interdependence and delayed reciprocity. In a well-designed Flow, givers may be able to receive more than they give over time. By working together towards a common goal, participants can benefit from a greater collective effort, which in turn drives the growth of the ecosystem as a whole.

In summary, the nFR proposal enables owners of nFR-compliant tokens to benefit from both an increase in price and future rewards even after the token is sold. The Flows created through the nFR framework fosters a collaborative and interdependent community, where participants work together to achieve a common goal. This creates a resilient ecosystem that is less susceptible to external shocks and bad actors, while also promoting long-term growth and success for all participants.

## Motivation

Not limited to NFT trading, it is common for an average trader to fall victim to spoofing, insider trading, front running, wash trading, and pump and dump, among a number of other techniques used by various actors. The current system guarantees that most traders will lose money because of their emotions, the constant oscillation between greed and fear. Under the current system, a trader has no advantage over many of the more sophisticated techniques used by various actors.

Although this historical precedent has been followed in today's markets, just as crypto has revolutionized traditional trading, we now have the opportunity to transform this historic trail of unequal value distribution by tracking every transaction of every distinguishable token through the emergence of the non-fungible token standard.

There needs to be a change in historical unfair trading practices so that:
This proposal aims to address the common issues faced by traders such as spoofing, insider trading, front running, wash trading, and pump and dump, which often lead to most traders losing money due to the constant fluctuations between greed and fear. The current system does not provide traders any advantage over more sophisticated techniques used by various actors.

* With a success-based model, everyone is on the same page;
* A mutually beneficial economic rule benefits both buyers and sellers.
However, the emergence of the non-fungible token (NFT) standard and the ability to track every transaction of every distinguishable token offers an opportunity to transform the unequal value distribution prevalent in traditional trading practices. This offers the potential to establish a Future Rewards program that rewards token owners for their participation in the instrument’s trading price discovery process.

The nFR proposal provides a standard interface for a profit-sharing framework that encompasses all stages of the token's ownership history desired by all market participants. This framework compensates token buyers/owners for their participation in the instrument's provenance and the trading price discovery process.

NFTs, in contrast to physical art and collectibles in the physical world, are not currently reflecting the contributions of their owners to their value. Since each [EIP-721](./eip-721.md) token can be tracked individually, and may be modified to record every change in the price of any specific NFT token, there is no reason that a Future Rewards program of this type should not be established.
The proposal embraces and promotes a new shared economics model that 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, and this proposal seeks to change the financial industry just as open-source software has changed the software industry and society.

This nFR proposal 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.
Additionally, this proposal discourages any "under-the-table" deals that may circumvent the royalty rules set forth by artists and marketplaces.

### Is This Just a Ponzi Scheme?

No, it is not. Ponzi schemes promise profits that are impossible to keep.

As opposed to fixed-yield schemes, our proposal only distributes future profits when those profits are achieved rather than guaranteeing them. Should later holders fail to make a profit, future return shares will not be distributed.
The proposed program is not a Ponzi scheme. Ponzi schemes make promises of profits that cannot be realistically achieved. In contrast, our program is designed to distribute future profits only if they are actually earned. This is different from fixed-yield schemes, which guarantee returns regardless of actual performance. If later holders of the token do not generate profits, future return shares will not be distributed.

The early participants in price discovery will receive a share of profits as part of the FR implementation only and if a later owner has accumulated profits during their holdings of the token.
Under our Future Rewards (FR) implementation, earlier participants in price discovery will receive a share of profits, but only if a later token owner has actually accumulated profits during their ownership. This ensures that FRs benefits are tied to real value creation, and that profits are distributed in a fair and transparent way.

## Specification

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