Wednesday, June 19, 2024

Round Two of cNFT Royalties is under way | CIP-27 v2

In August of 2021, just ahead of the Alonzo hard fork, an unprecedented meeting took place. The focus was how to bring Royalties to Cardano. Many Ethereum folks had used this as a talking point to create FUD for Cardano since we did not yet have royalties in the cNFT ecosystem. Many people were under the impression that Smart Contracts would effectively solve this problem. But as the designs for Plutus became more known, it became clear the Cardano Smart Contracts would not provide this function. And the reason is fairly straight forward. In Ethereum, Assets only exist because of a smart contract; therefore a royalty can be built in to the same smart contract. On Cardano, Assets are native. We dont need Smart Contracts to create assets. As such, they are not tied at the hip, and are mutually exclusive in nature. Thats not to say a smart contract cant be written to provide a royalty. It does however mean that we cannot force an asset to pass through a smart contract when it changes hands.

Since many had expressed the desire to have royalties, and to get ahead of the Fud being brought on from Ethereum maxis, several key players from the community began an effort to create a community standard. Significant input was taken from the community at large. Several ideas were proposed. And the technically valid solutions were voted on. The result of this event is CIP-0027.

At the time of the inception, the Mary era was only 9 months old. Only a couple of marketplaces existed. And we had no precendent or hind site knowledge. The goal was very much to reconvene in the future to revisit the topic. And that time has now finally arrived. We’ve seen the space mature significantly. We now have over 3 million assets on the blockchain, several marketplaces, and a much larger community.

The conversation is taking place in the Buffy Bot Discord. You can join the Discord here. That link is good for 1 week, and will be updated through the end of the discussion period. If you would like to participate, please join their Discord, and then request to be added to the Royalties discussion.

We will plan to host a few twitterspaces for proposers to discuss their ideas. A final closed door voting session will take place tentatively on February 12th. Since there is no rush to create a version 2, this date may be extended as long as necessary.

Keywords: cnft projects, cardano cip github, cnfthub, cnft updates, cnft con, cnft maker, cardano nft royalties

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