*This is an updated proposal after having secured written commitment from Rarible for the implementation of the ERC within the Rarible Protocol once it’s ready. This update also clarifies other elements including the guaranteed advisory support over the implementation with William’s development expertise and Rito’s UX design expertise. The collaboration with Rarible opens a pathway for exciting possibilities and we look forward to seeing how this initiative evolves!
Dear Rari Foundation members,
Our team comprised of William Entriken, Lead Developer (the lead author of ERC-721 which ushered digital assets into the mainstream as well as & ERC-165, fundamental for identifying and verifying smart contract interfaces within the Ethereum ecosystem) and Rito Rhymes, Lead Adoption Architect & UX Designer (dox: Matthew Pellerito; Fashion-Tech CEO of Jumptag Club, multi-media NFT artist, M.S. in HCI from DePaul) are excited to present a proposal pioneering a new ERC!
#Universal Asset Signing
We propose to extend the existing ERC-721/1155/20 standards with a new approveForAllWithSignature function. This new function will allow tokens to seamlessly connect to any marketplace/wallet using only a signature, reducing the cost & friction of connecting to a new marketplace. We refer to this as Universal Asset Signing because it enables a standardized, secure, and simplified method for asset owners to authorize their assets’ listing or trading across various marketplaces using cryptographic signatures, enhancing cross-platform asset management and accessibility.
## Expert Qualifications
William authored the first mainstream NFT standard, ERC-721 on Ethereum, that directly coined and defined the term “Non-Fungible Token” now used universally by all relevant authorities as well as a label for the digital collectibles industry as a whole. Major projects like Bored Ape Yacht Club, CryptoKitties and Beeple’s 100 Days, along with countless other projects and brands, are powered by this standard, with billions of dollars’ worth of transactions taking place throughout the years.
In addition to ERC-721, William co-authored ERC-165, which has become essential for the smart contract ecosystem’s functionality, without it, is like trying to play a boardgame without ever reading the rulebook. Since the inception of Ethereum’s journey with ERC-1, William has been instrumental in shaping the proposal process itself, demonstrating his continuous commitment to the community’s evolution. His eminent authority makes him exceptionally qualified to propose and shepherd a new ERC for the Rari Foundation and Rarible, promising a well-considered, expertly crafted, and valuable contribution.
## Motivation
The current process for connecting to a new marketplace can be expensive and time consuming. Sellers must pay a one-time “approval” transaction PER token PER marketplace for listing a token and results in numerous transactions adding congestion to the network. This also means getting started on a new marketplace can be very expensive, and therefore there is a strong network effect and moat around whichever marketplace is largest.
The proposed approveForAllWithSignature function would reduce the cost and time of connecting to a new marketplace by requiring a mere signature as opposed to a completed transaction.
Global fees also tend to be high due to network congestion, thus reducing the number of transactions involved to enact the same activities taking place will help stabilize gas fees for everyone (this ERC will replace ALL the transactions for listing an asset in different marketplaces into a single one paid by the buyer).
## Rationale
Increased adoption: By reducing the cost and friction of connecting tokens to Rarible’s marketplace, more users would be likely to choose Rarible as a platform for trading their NFTs and other tokens. This would help Rarible grow its user base and increase its overall adoption.
Competitive edge & leadership: As a marketplace that supports the approveForAllWithSignature function, Rarible would offer an initial unique selling point compared to other marketplaces that do not support this standard. This feature could attract users who prioritize lower gas fees, faster onboarding, and flexibility when connecting their tokens to a marketplace and as other marketplaces adopt it, Rarible will be known for having pioneered it and will be looked towards for innovations in the future.
Improved user experience: The reduced friction and cost of connecting tokens to the Rarible marketplace would lead to a better overall user experience, making users more likely to continue using Rarible in the future and recommend it to others.
Reduced network effect of dominant marketplaces: The proposed function would help level the playing field for Rarible by reducing the network effect and moat around dominant marketplaces. This would make it easier for Rarible to compete with larger platforms (OpenSea), enabling it to capture a greater share of the market.
Lower gas fees: Globally speaking, reducing total transactions in the network (removing the approval/listing asset transaction) without actually reducing activity taking place helps stabilize gas prices and makes the system more efficient. Locally, it reduces gas fees for token sellers on Rarible listing an asset down to 0. The estimated pennies more in gas fees for buyers to purchase the asset may be offset by the reduced congestion in global gas fees especially as adoption scales. Overall, the marketplace costs incurred from gas fees are reduced, thus saving users more money that could otherwise be spent on purchases.
No backdoor vulnerabilities: Similar solutions involve utilizing a backdoor for tokens to be allowlisted which opens up all sorts of vulnerabilities, but our method does not utilize a backdoor and so sidesteps the risks involved.
By supporting the approveForAllWithSignature function, Rarible would position itself as an innovative and user-centric platform that prioritizes efficiency, cost-effectiveness, and flexibility. This would likely lead to increased adoption, a competitive edge, and an improved user experience, ultimately benefiting Rarible in the long run.
## Alternatives considered
Another simple way to get token creators to support new marketplaces is to ask them to “allowlist” the marketplace which will enable the asset to be listed in that marketplace for free once created. This is also called a backdoor.
There are numerous problems with this approach. First the original token creator is expected to know all marketplaces they want to approve, and they are expected to be able to audit them.
Next, the token creator is unable to approve marketplaces or new versions that don’t exist yet.
And lastly, if the marketplace has a vulnerability or unexpected features then every token with that backdoor will also have that problem. For example, OpenSea’s Shared Storefront was published with a large undocumented backdoor where they can seize anybody’s assets. Whoops! Does OpenSea Shared Storefront have a backdoor? – William Entriken Blog This proposal on Rari is proposed by a team with the same person that discovered/published that vulnerability/backdoor.
This proposal on Rari allows the token owners to decide which marketplaces they want to allow and this is better than the backdoor approach given its versatility and sidestepping of vulnerabilities associated with said backdoors.
## Implementation Commitments
Following in-depth discussions with the engineering team at Rarible, we are pleased to have secured written confirmation that outlines their readiness to integrate the newly developed ERC into the Rarible Protocol. This integration, anticipated to commence promptly upon the completion of the ERC, is a testament to the collaborative spirit and mutual vision for innovation shared between both teams.
Furthermore, the agreement encapsulates the integration into the Rarible marketplace at a subsequent phase, aligning with their preparedness and strategic timeline. This collaboration promises not only to enhance the functionality and reach of the Rarible Protocol but to unlock new avenues of scalability and utilization for the ERC. Through accessible API and SDK interfaces, developers will find a rich platform to innovate and build upon, catalyzing further growth and novel use cases within the ecosystem.
We look forward to fostering a symbiotic relationship, where platforms and users alike can leverage the potential of the ERC to its fullest extent, augmenting the value proposition and utility of the Rarible Protocol.
We hereby acknowledge and confirm that the commitments delineated in this agreement pertain specifically to the responsibilities of Rarible’s engineering team regarding the integration of the newly developed ERC into the Rarible Protocol and subsequent marketplace. It is mutually understood that the primary role of our team in this process is to provide expert advice and consultation to facilitate a seamless and efficient integration.
In the event that any changes in the scope of the project necessitate a direct involvement of our team in hands-on programming and implementation activities, beyond the advisory capacity detailed in the section below, it is agreed that this will require the formulation of a new proposal to be approved. This new proposal will delineate the altered responsibilities, commitments, and any additional resources required to ensure the continued success and efficacy of the integration project.
## Advisory Support
William commits to be available for Rarible and Rari Foundation engineers in advising how to implement any needed parts into the Rarible Protocol as well as Rarible’s production codebases. This is limited to 5 phone calls per organization (10 total) at minimum for up to one hour each to be scheduled at mutually available times. William wants to see the ERC successfully implemented and may provide additional calls as needed in an at-will basis up to his discretion.
Rito commits to be available for Rarible and Rari Foundation’s teams in advising a User Experience design strategy for implementing the ERC into the front-end of the Rari Protocol and Rarible marketplace, including UX writing to guide users seamlessly. This is limited to 5 phone calls per organization (10 total) at minimum for up to one hour each to be scheduled at mutually available times. Rito is eager to see the ERC being utilized by everyday users and may provide additional calls as needed as well as hands-on support in executing his strategic designs in an at-will basis up to his discretion.
## Adoption Efforts
Our team is fully geared to spearhead good faith adoption efforts post the approval of this proposal. We believe that to maximize the potential and impact of the Universal Asset Signing ERC, it is essential to foster collaborations and integrations across different platforms in the ecosystem with various partners including other tier 1 marketplaces.
While we are keen on initiating these efforts, we are equally conscious of the need to secure approval before embarking on detailed discussions with prospective collaborators. We assure the community that upon approval, we will channel our energies towards establishing partnerships that will enhance the reach and effectiveness of the ERC, all while maintaining the integrity and objectives of the Rarible community.
## Budget
Total: 50,000 cumulative value in US dollars paid out in $RARI.
The value of the $RARI payments in corresponding US dollar value is based on the fair market exchange rate at the time of each disbursement’s distribution, thus payments may vary in the quantity of $RARI so long as it cumulatively targets a total contract value of 50,000 in US dollars.
Funds will be distributed to a wallet(s) controlled by Entriken Design LLC such as “Fulldecent.ETH”
## Specifications
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Draft an ERC standard extending ERC-721, ERC-1155 and ERC-20 with this new functionality. This is similar to how ERC-2981 NFT Royalty Standard extends ERC-721 and ERC-1155. A contributing member of Rarible’s engineering team is invited to be coauthor on this paper.
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Publish reference implementations for ERC-721, ERC-1155 and ERC-20 token conforming to this new standard.
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Publish documentation for token creators to explain this extension.
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Publish documentation for token buyers/sellers to explain this extension.
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Publish documentation for marketplace operators to explain this extension.
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Publicly test the ERC in a manner where the use case can be demonstrated and studied.
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Provide Advisory Support to Rarible & the Rari Foundation (via calls as outlined) to support implementation of the ERC into the Rari protocol and Rarible marketplace.
- Development and progress will be shared on the Community Service Hour weekly call at 6PM New York time (EST). This is live each week through Twitter Spaces + Twitch and is syndicated to YouTube, Apple Podcasts and Spotify Podcasts. William Entriken, Portfolio 3
## Timeline
We estimate a 2-month period where we cyclically move through the steps of drafting, building, testing, gathering feedback, iterating, documenting until finally publishing the ERC and final documentation with an operational version ready for implementation. The timeline is subject to change based on unforeseen circumstances, market dynamics, additional technological advancements, health-related issues or additional measures required to enhance the project’s viability to benefit all stakeholders involved.
Moreover, we retain the right to extend this timeline at our discretion to accommodate potential shifts as they arise. We emphasize that these adjustments will be grounded in our commitment to delivering a product that not only meets the expected standards but aims to exceed them, ensuring the optimal functionality and integration of the ERC in the broader ecosystem. Our primary goal remains to prioritize the quality and integrity of the project over adhering strictly to the initial timeframe, fostering a more adaptive and responsive development process.
## Communication
To ensure the community remains abreast of our progress, we are committed to maintaining an open and transparent line of communication. We will be actively engaged in the Rari Foundation’s Discord forum channels, providing regular updates on our progress and status of the project. We understand the importance of accessibility; hence we encourage the community to reach out to us with any inquiries or suggestions. As the primary liaison, Rito will be available to address your concerns and can be reached at rito@ritorhymes.com.
Our team also plans to attend the periodic community calls where we can share updates and insights regarding the development of the Universal Asset Signing ERC directly with stakeholders. However, it is not always possible to attend scheduled events, so the asynchronous method above will be our primary mode.
## Payment Milestones
The payment will be apportioned in three installments, each amounting to 16,666 US dollars’ worth of $RARI. The value of the $RARI payments in corresponding US dollar value is based on the fair market exchange rate at the time of each disbursement’s distribution, thus payments may vary in the quantity of $RARI so long as it cumulatively targets a total contract value of 50,000 in US dollars.
Installment milestones are as follows:
- Upfront upon voting approval of the proposal to begin working on the ERC.
- Upon the first successful testing of the code for the digital signing of an asset.
- Upon a tested and operational version of the ERC being ready for implementation.
## Principles of Payment
Service Compensation: The payment made to Entriken Design LLC serves exclusively as compensation for the professional expertise, time, and resources dedicated to the development and delivery of the Universal Asset Signing ERC and deliverables outlined in the ##Specifications section. It is not a grant or funding for ongoing or future project activities or developments.
Independence of Fund Utilization: Once disbursed, the management and utilization of the funds are at the sole discretion of Entriken Design LLC. The payment constitutes a full settlement for the services provided and does not impose any further financial obligations or expectations related to the project’s progression or associated activities.
Limited Liability: Entriken Design LLC will not be held responsible for any additional developments, activities, or expenditures beyond the delivery of the agreed-upon services, marking the completion of the contractual obligations associated with the payment.
Any and all are welcome to attend and ask questions regarding this proposal in the weekly community calls with William Entriken taking place every Tuesday at 6PM New York time (EST) by joining the Twitter spaces hosted by his profile @fulldecent.