The concept of royalties and NFTs and usually in the same conversation, but many seem to ignore how they go together. Up until not, royalties that are due on NFT sales are managed centrally. What happens if the application that “is the marketplace” goes away for whatever reason? There needs to be a more trustless way to manage royalties. This is the problem that Ethereum Improvement Proposal (EIP) 4910 is solving. Authored by Dr. Andreas Freund, cofounder of Treetrunk.io, EIP 4910 is described as an, “Extension of the ERC-721 standard for NFTs to correctly define, process, and pay (hierarchical) onchain royalties from NFT sales, going beyond EIP-2981.”
“The proposal directly connects NFTs and royalties in a smart contract architecture extending the ERC721 standard, with the aim of precluding central authorities from manipulating or circumventing payments to those who are legally entitled to them. The proposal builds upon the OpenZeppelin Smart Contract Toolbox architecture and extends it to include royalty account management (CRUD), royalty balance and payments management, simple trading capabilities — Listing/De-Listing/Buying — and capabilities to trace trading on exchanges. The royalty management capabilities allow for hierarchical royalty structures, referred to herein as royalty trees, to be established by logically connecting a “parent” NFT to its “children”, and recursively enabling NFT “children” to have more children.”
Envision Blockchain is developing and implementing EIP4910 for Treetrunk.io.
The TreeTrunk™ NFT is a fully-implemented extension of the well known ERC-721 standard, now expected to be designated as EIP-4910 as a new draft ERC. (Note: We think 4910 is auspicious, because 7*7 = 49 and 7+2+1 = 10. Nice, right?)
The TreeTrunk approach was conceived by ConsenSys Mesh group executive John Wolpert. Dr. Andreas Freund designed the smart contract and zero-knowledge circuits that make the approach possible. ConsenSys Mesh and Envision Blockchain developed EIP-4910 and the NFT Platform TreeTrunk.io. The TreeTrunk legal framework was developed by noted tech lawyer, Ira P. Rothken. Enterprise use cases for TreeTrunk were developed by Richard Taub. The TreeTrunk go-to-market strategy was designed and executed by Sarina Charugundla.
The purpose of the TreeTrunk NFT is to become the first widely-used and standards-compliant smart contract that can distribute royalties immediately and securely on any EVM-compatible Layer-2 blockchain such as Polygon – and to do so not only for one party but for multiple parties in a multi-level distribution network.
The TreeTrunk royalty distribution structure supports compelling commercial use cases such as viral affiliate marketing of digital assets and the management of content distribution networks. The most obvious of these cases for NFTs is turning every holder of a Creator’s NFTs into a compensated distributor of additional royalty-bearing NFTs.
Click here to read more about EIP 4910
About Envision Blockchain Solutions
Envision Blockchain Solutions is a Blockchain Ledger Agnostic Systems Integrator. Our mission is to reshape and align today’s Enterprise systems allowing organizations to recognize the new value in tomorrow’s Industry Vertical Solutions. The management team has years of Fortune 500 experience and has built a team of subject matter experts in Blockchain and Business Transformation Processes within Emerging Technologies. We focus on guiding organizations through 3 major milestones on their Blockchain journey: Use Case Analysis, Proof of Concept Development and Enterprise Scaled Deployments.
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Envision Blockchain Solutions builds applications for the Web3 space. Our mission is to reshape and align today's systems allowing organizations to recognize the new value in tomorrow's Industry Vertical Solutions. The management team has years of Fortune 500 experience and has built a team of subject matter experts in Web3 and Business Transformation Processes. We focus on guiding organizations through 3 major milestones on their Web3 journey: Use Case Analysis, Proof of Concept Development, and Scaled Deployments.
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