Skip to content

Commit 376ed9e

Browse files
authored
CIP-0027 | Adjust preamble and structure w.r.t CIP-0001 (cardano-foundation#674)
* first draft remediation of CIP-0027 * punctuation fix * fix clarity + spelling in Path to Active * spelled NA instead of standard N/A
1 parent feb98cc commit 376ed9e

File tree

1 file changed

+46
-26
lines changed

1 file changed

+46
-26
lines changed

CIP-0027/README.md

+46-26
Original file line numberDiff line numberDiff line change
@@ -1,25 +1,28 @@
11
---
22
CIP: 27
33
Title: CNFT Community Royalties Standard
4-
Authors: Huth S0lo <[email protected]>, TheRealAdamDean <[email protected]>
5-
Comments-URI: https://forum.cardano.org/t/cip-royalties/68599
64
Status: Active
7-
Type: Informational
5+
Category: Tokens
6+
Authors:
7+
- Huth S0lo <[email protected]>
8+
- TheRealAdamDean <[email protected]>
9+
Implementors: N/A
10+
Discussions:
11+
- https://forum.cardano.org/t/cip-royalties/68599
12+
- https://github.com/cardano-foundation/CIPs/pull/116
813
Created: 2021-08-29
914
License: Apache-2.0
1015
---
1116

12-
## Simple Summary
13-
14-
A community standard for royalties&#39; functionality, that does not require smart contracts to implement.
15-
1617
## Abstract
1718

18-
This proposed standard will allow for uniform royalties&#39; distributions across the secondary market space. It is easy to implement using metadata only, and does not require a smart contract. However, it is scalable to allow for the usage of a downstream smart contract, as needed by the asset creator. It has been developed with input from Artano, BuffyBot, CNFT.io, Digital Syndicate, Fencemaker, MADinArt, NFT-Maker.io, Hydrun, Tokhun, and many more.
19+
This proposed standard will allow for uniform royalties' distributions across the secondary market space. It is easy to implement using metadata only, and does not require a smart contract. However, it is scalable to allow for the usage of a downstream smart contract, as needed by the asset creator.
20+
21+
## Motivation: why is this CIP necessary?
1922

20-
## Motivation
23+
There is a significant interest within the Cardano Community for an implementation of royalties distribution when a Cardano Asset is resold on the secondary market. It has become a common theme to see and hear statements that the only thing stopping artists from adopting Cardano, is that they are waiting for an implementation of royalties.
2124

22-
There is a significant interest within the Cardano Community for an implementation of royalties distribution when a Cardano Asset is resold on the secondary market. It has become a common theme to see and hear statements that the only thing stopping artists from adopting Cardano, is that they are waiting for an implementation of royalties. At the present time, smart contracts do not create a simple mechanism to implement royalties. By developing a community standard, we can resolve the immediate need for royalties, and create a path forward for a potential future iteration of smart contracts.
25+
At the present time, smart contracts do not create a simple mechanism to implement royalties. By developing a community standard, we can resolve the immediate need for royalties, and create a path forward for a potential future iteration of smart contracts.
2326

2427
## Specification
2528

@@ -32,7 +35,7 @@ A new tag of 777 is proposed for this implementation. The community guidelines
3235
6) The "addr" key tag can be a string value, or an array. It is to include a single payment address. By allowing for an array, the payment address can exceed the per line 64 character limitation. This payment address could be part of a smart contract, which should allow for greater flexibility of royalties distributions, controlled by the asset creator.
3336
7) The royalty token must be minted prior to creating any assets off the policy. All markets will be instructed to look only for the first minted asset on a policy, which would need to be the unnamed 777 token.
3437

35-
## Example JSON with string
38+
### Example JSON with string
3639

3740
{
3841
"777": {
@@ -41,7 +44,7 @@ A new tag of 777 is proposed for this implementation. The community guidelines
4144
}
4245
}
4346

44-
## Example JSON with array
47+
### Example JSON with array
4548

4649
{
4750
"777": {
@@ -53,27 +56,44 @@ A new tag of 777 is proposed for this implementation. The community guidelines
5356
}
5457
}
5558

56-
## Process Flow
59+
### Process Flow
60+
5761
1) Create policy for planned assets.
5862
2) Mint no name token with community standard royalties metadata.
5963
3) Burn no name token to free up UTxO (recommended, but not required).
6064
4) Mint planned assets using this same policy.
6165

62-
## Rationale
66+
## Rationale: how does this CIP achieve its goals?
67+
68+
By creating a new tag for the distinct purpose of royalties distributions, Cardano Asset makers, and Marketplaces can uniformly apply royalties to assets with predictable results.
69+
70+
By creating the instructions on a single, no name token, all marketplaces will know the correct location of the royalties asset, without having to further locate it.
71+
72+
By enforcing the requirement of honoring only the first mint, cardano asset buyers and owners can predict the future resale value of the assets in their possession.
73+
74+
The solution is scalable to any desired royalty percentage. It is easy to work with this new standard, and does not require an in depth understanding of smart contracts.
75+
76+
## Path to Active
77+
78+
### Acceptance Criteria
6379

64-
By creating a new tag for the distinct purpose of royalties distributions, Cardano Asset makers, and Marketplaces can uniformly apply royalties to assets with predictable results. By creating the instructions on a single, no name token, all marketplaces will know the correct location of the royalties asset, without having to further locate it. By enforcing the requirement of honoring only the first mint, cardano asset buyers and owners can predict the future resale value of the assets in their possession. The solution is scalable to any desired royalty percentage. It is easy to work with this new standard, and does not require an in depth understanding of smart contracts.
80+
- [x] Support of royalty distribution according to this standard by multiple significant NFT related platforms.
81+
- [x] Implementation in libraries supporting NFT minting, including:
82+
- [x] Mesh ([Minting Royalty Token](https://meshjs.dev/apis/transaction/minting#mintingRoyaltyToken))
6583

66-
## Change Log
84+
### Implementation Plan
6785

68-
## Initial proposal - August 14th, 2021
69-
## Revised proposal - August 28th, 2021
70-
## Minor Revision - August 31st, 2011
71-
## Minor Revision - September 27th, 2021
72-
## Minor Revision - November 8th, 2021
73-
## Minor Revision - December 30th, 2021
74-
- Change CIP Type from Standards to Informational
75-
- Change CIP Status from Draft to Active
86+
- [x] Incorporate input from many Cardano NFT related entities, including:
87+
- [x] Artano
88+
- [x] BuffyBot
89+
- [x] CNFT.io
90+
- [x] Digital Syndicate
91+
- [x] Fencemaker
92+
- [x] MADinArt
93+
- [x] NFT-Maker.io
94+
- [x] Hydrun
95+
- [x] Tokhun
7696

77-
Copyright
97+
## Copyright
7898

79-
This CIP is licensed under [CC-BY-4.0](https://creativecommons.org/licenses/by/4.0/legalcode)
99+
This CIP is licensed under [CC-BY-4.0](https://creativecommons.org/licenses/by/4.0/legalcode).

0 commit comments

Comments
 (0)