The new NFT standard ERC721-C aims to open new forms of royalties that can simultaneously reward creators, communities, partners, and affiliates.
Royalties in NFT
After an NFT is minted on the blockchain, all the secondary sales of an NFT will have a set percentage of royalties that are to be paid to its creators. Therefore, it enables NFT creators to make revenue following the release of their collection. Nowadays, most NFTs are minted on the Ethereum network, and the royalties are not entirely enforceable on-chain.
ERC721-C: Major Features You Should Know
ERC721-C is built upon the existing ERC721 standard to offer enhanced capabilities compared to the existing NFT standard. Below are a few major features:
- Flexible Metadata: It supports customizable metadata for NFTs. Compared to traditional NFT standards, which often impose limitations on metadata structure and content, ERC721-C allows creators to create metadata to suit their specific needs.
- Continuous Revenue: Creators can receive set royalties from secondary sales. Thus supporting creators in producing high-quality content and creating a sustainable ecosystem for the NFT community.
- Interoperable: ERC721-C allows for seamless integration with other standards and protocols. These NFTs will be easy to trade across a wide range of platforms and applications and enhance their utility.
- Security Policy: It allows creators to define and transfer security policies, giving them control over how their NFTs are transferred between wallets and platforms.
- Programmable Royalties: Creators can implement dynamic royalty-sharing systems that distribute revenue from royalties to multiple stakeholders, including creators, communities, partners, and affiliates.
Operation and Application
The new NFT standard incorporates transfer security policies into NFT smart contracts. These policies include predefined security levels, and contract receiver allow-lists, providing creators with control over each NFT transfer.
The new NFT standard can not be adopted overnight. Although interest in the NFT space has been consistently growing, the standard is relatively new and complex in this space.
Future of ERC721-C
As the NFT space continues to evolve, the new standard plays a central role in shaping the future of digital ownership and embodies the core principles driving innovation within the NFT community.
NFT Royalties: Who’s Gaining the Rewards?
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