Problem: Everyone can refund without any condition

[lawweiliang]

Question

Will a businessman refund stuff without setting any condition? Does it make sense?

For our contract, we could observed that as long as user bought an NFT. Within a period of time, they may refund without any further condition.

Real World Analogy

I am a grocery shop owner. Whenever a customer bought something from me, they can return the product and get refund after a period of time. In my country, Malaysia, this does not make sense.

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Go in-dept

Why customer want to refund in the first place?

1. Customer not happy with the picture (picture is different from the marketing site)
2. Customer not happy with the picture (it is not rare enough so refund and mint a new picture)
3. Customer not happy with the price (The market price is lower than the minting price).

You may observe that none of this are favorable to the project owner. I don't think they are going to implement this. Any clues for this @elie222 @0xsublime @Amirh24 ?

[elie222]

Ya. It's a tough one to solve. I'm okay with letting the user decide why they want to refund.

1, 2, and 3 are all reasons a user could choose to refund and that's fine.

Maybe you could have a centralised group that decides whether a project is a rug or not but really seems to miss the ethos of web3. Voting systems wouldn't work either as could easily be cheated.

[0xsublime]

It's sort of a variation on "The Market for Lemons". The only NFTs that will be sold in the end (i.e. sold and not refunded) are the ones for which the expected value is above the mint price. So like @elie222 says, if mint floor is close to the expected value of the non-rare items, expect refunds there. On the other hand, that means that those NFTs go back to the creator (or an address of their choice) and can hit the secondary market at a lower (fairer) price, so it's still not a big loss.

The big gain in implementing this is that the owner can create more trust in their project. They have until the refund deadline to show that their project is worth holding onto. If they fail to do that, massive returns right before deadline should be expected. But in return, they can get a lot of traction early, sell more and also abandon the project in good conscience if the launch turns out to be a failure. In exchange, they need to set a pretty conservative mint price.

[lawweiliang]

For those people that want to know more, you may refer to the original home page https://erc721r.org/ FAQ section.