Standard NFT(s)->FT Staking (SIP)

[setzeus]

APPLICANT

Type:                                                                        Direct Application

Email:                                                                    jnajera1917@gmail.com

Discord:                                                    setzeus#3767

Twitter:                                                        @setzeus

Stacks Forum:           

GRANT BASICS

Grant Name:                                        Standard NFT->FT Staking (SIP)

Total Budget:                              25,000

Total Duration:                 250

Grant Type:                                               Open Source Dev 1st time Grantees

Grant Track:                                          Stacks dApps & Clarity

Grant Goal:                                               Improve Existing Technologies

Grant Audience:             Developers

Specific Audience:         CTOs/Clarity engineers working on a new NFT/FT ecosystems.

Grant Team:                                       https://github.com/setzeus, https://github.com/setbern

Previous Grants:                      

Ecosystem Programs:      I was a technical EIR for Stacks Accelerator cohort 2.

GRANT MISSION, IMPACT, RISKS & REFERENCE

Grant Mission:         This grant proposal aims to standardize & improve a cross-collections staking experience so that teams can deploy flexible, tested staking experiences.

Traditionally, the original NFT has the potential for staking in exchange for some associated FT; derivative collections (Robots, Mutant Monkeys, Baby Badgers, etc...), however, since they’re ultimately engineered post-original collection release, miss out on this same staking experience. As of now, derivative collections that offer staking have opted to release multiple fungible tokens, such as BTC Monkeys -> $banana & Mutant Monkeys -> $slime.

There’s an opportunity here to standardize this experience so that future collections have a thoroughly-tested, reliable & flexible staking experience. It’s key that teams deploy a staking contract modular enough to account for all upcoming collections (together, a collective).

Here’s a few common questions every team faces that this SIP could answer:

How should we setup non-custodial staking? How often are rewards generated? How often should a user be able to claim? How do we calculate the reward for one collection? How do we calculate the reward for multiple collections? How can we add/whitelist another collection?

By researching the most optimal methods & by collaborating with teams actively building out these experiences, we’ll come together with staking standards that the entire network can adopt as an SIP.

Grant Impact:               Trait implementations! The number of teams adhering to & implementing the finalized the trait to this staking mechanic is our key metrics.

Grant Risks:                          The biggest obstacle we face is community rejection for the SIP proposal. The contingency here is to listen & adhere to feedback until accepted.

Support Link:                                     Attached you'll find three images:

1. The schematic for a multiple NFT & FT staking experience before implementing this SIP
2. The schematic for a multiple NFT & FT staking experience after implementing this SIP
3. A math description of the crux logic involved

GRANT ROADMAP & DELIVERABLES

MILESTONE 1:

Deliverable:                   Example Clarity contracts (NFT-A, NFT-B, FT, Staking)

MILESTONE 2:

Deliverable:                   A performance audit (read/write limits) & SIP submission

FINAL DELIVERABLE

Deliverable:                   An SIP Submission, performance audit & example contracts

[stacks-foundation]

👋 @setzeus
Thanks for your application! We will do a pre-review and let you know if we have any immediate questions. In the mean time please refer to our review schedule here for a detailed timeline and response dates.
Best, Will

[owenstrevor]

@setzeus is one of the most talented devs in the Stacks community and this project will add a ton of value to the community by allowing thousands of potential NFT projects to more easily launch a fungible token with an audited staking contract that can future-proof their efforts to launch more collections.

Right now, there are only 7 fungible tokens available for swapping/trading on ALEX (other than Stacks and ALEX's token). Solana DEXs on the other hand have thousands of fungible tokens for swapping. While many tokens will be worthless, by allowing a million flowers to blossom, we have a chance to let some great projects appear. NFT staking tokens essentially function as a loyalty token (think $APE coin for Bored Apes, $ICE for Stacks Pops, $BANANA for Bitcoin Monkeys, $MEGA for Megapont, etc) and they tend to be easier than other types of tokens to maintain some value when there is an actual community behind them. Whether they use the token to buy merch or additional NFTs/collectibles, this will lead to more users, more wallets, and more transactions on the network.

[ecargnfx]

Really think this staking mechanism is a great direction for the Stacks community. I hope to see this go through and @setzeus has been an amazing community builder and developer so he'd be the perfect person to implement this too!

[purplesuede22]

I've loved working with Setzeus on the Bitcoin Badgers project. He's a great dev, and I'm confident that he'll do a great job on this research grant. This is a needed function in the Stacks ecosystem, and I think this grant is a great first step to set a rigorous precedent moving forward.

[unclemantis]

I am for @setzeus proposal for this SIP recommendation. This will cause some exiting projects to happen!

[eliherf]

@setzeus is a pillar of the Stacks dev community. This would enable such amazing collaboration between Stacks projects, and enable wider adoption and onboarding of other NFT projects, creators and founders into the ecosystem, as it would enable such amazing community building. We need more incentive in the ecosystem, and this would be the unlock.

[plutusdotbtc]

@setzeus is a fantastic asset to the Stacks ecosystem and is helping empower projects and developers to help build their projects. This SIP fills a gap that has not been accounted for in current NFT standards on Stacks and is very important that it be implemented. Staking is an important mechanism in both NFT and FT ecosystems, but it comes with risk of exploit. This risk of exploit is minimized when staking is non-custodial, but real non-custodial staking can only be achieved by accounting for staking logic in the initial NFT contracts. If staking is going to be accounted for in NFT contracts, then it should be codified as a SIP such that developers can depend on the staking mechanism to be present in each NFT contract. including this as a standard will increase optionality for projects down the road and enable more robust solutions to be built on top of these NFT contracts.

@setzeus solution to this problem with the standard he has proposed and the staking contracts he has planned to build for it are a great solution to this issue. The staking contracts will be flexible as will be the staking mechanism within the NFT contract. This will allow almost any project that wants to adopt staking to use these contracts for their own projects. This not only creates a standard across the ecosystem but avoids potential exploits that could happen with each project developing their own staking contracts.

This would be a fantastic value add to the Stacks ecosystem, would accelerate development speed for projects, and would increase safety of staking mechanisms on Stacks. I see it as a must-do grant.

[spaghettipunk]

Spaghetti Punks have already solved most of the problems this proposal aims to solve. Reach out to spaghetti punks to learn more. They are way ahead on this front.

We have talked with Setzeus and are excited to work together to find the best possible standard for the community!

[GAD2511]

There is a need for an NFTs project to generate tokens that seems today to be the best way for token distribution by staking their collections of NFTs. Not only for what @setzeus represents on the part of his dev’s works achievement but the value and legitimacy this idea of Standard NFTs => FTs Staking will bring to projects making them legit because of good Tokenomics through this Standard. I also think projects are suffering from this lack of Standard staking. And this will definitely solve the problem and will drive some attention to the Stacks where other projects would want to build their project.

This grant should be accepted quickly so the grantees can start building it very quickly for a chance to implement it which will bring more growth to Stacks ecosystem

[Jamil]

A standard for this would be invaluable for marketplaces to ensure consistent support among projects, and to establish a set of common patterns for staking. We've seen exploits, bugs, and issues appear from time to time on multiple staking contracts, a problem from which no developer is completely immune! A standard staking contract would be a great value add for both NFT projects and marketplaces to facilitate support. I'm always in favor of creating commonly accepted standards over multiple inconsistent implementations, and I think we've had enough use cases and different implementations to recognize the tradeoffs between the two.

For a project like this, I couldn't think of a better person than @setzeus to execute on it; he's been involved in writing smart contracts for multiple NFT projects, across multiple use cases, and has been able to execute well on them. There are few Clarity developers in the NFT ecosystem who are as battle-tested and experienced as @setzeus on a wide range of projects. This grant and @setzeus has my support :)

[Hero-Gamer]

For anyone interested to hear more about this SIP, as the SIP Resident, I will be hosting @setzeus on this Friday 23rd Sep weekly SIP call at 11am ET - more info below: https://twitter.com/herogamer21btc/status/1571983637180223488?s=20&t=I3PBl0rg1dstum17WeYMvw The duty I see myself is not be the judge of this SIP (maybe I still can) but to facilitate SIP authors to advocate for their cause, and help Stacks community do their due diligence. The more we have community generated SIP the better it is for the ecosystem and decentralization. So tune in this Friday :)

[will-corcoran]

Hi @setzeus -

Congrats! Your grant application has been approved. We just sent you an invite (to the email the application was submitted with) to an onboarding call on Monday. We will use this call to provide an overview of next steps and expectations for proceeding with the grant.

If you are not able to make the call, don't worry, it will be recorded.

Best, Will Stacks Foundation Grants Program Manager.

[Scarlett-Web3]

I think you have an interesting project. If you haven't already gone through the Stacks Web3 Startup Lab, I would like to invite you to apply.

Here's a 5-minute read on how we can help you turn your startup idea into an investment-ready startup: www.web3startuplab.io

If you are interested, you can apply through the "Apply Now" button.

Feel free to ping me on email: scarlett@stacks.ac

[will-corcoran]

Hey @setzeus according to my records you have yet to sign the contract which is why no payment has been disbursed. Just checking to make sure things are Ok and you have visibility on what is needed from you.

cc @shaktistacks

[setzeus]

Hey @will-at-stacks, just executed it on my end.

All good, just needed a bit more time to read over the contract & then realized I had missed the first meeting so the paperwork went back of mind.

I would like ask some questions & to give some feedback re: the Clawback clause if you have some time later this month - was a bit interested to see that / made me read over the contract more carefully.

[will-corcoran]

Milestone updates on this grant can be found here

[setzeus]

Issue closed with final SIP findings here: https://github.com/stacksgov/sips/issues/123