Fractional NFT ownership

[Jantinine]

We would like to explore the possibilities of fractionalizing NFTs in a manner that protects from the usual pitfalls of naive implementations, ensuring that the original NFT can be reconstituted, while retaining fairness for all owners of NFT fractions.

This is a call for open experimentation with solutions, thus we will list the required features, and a few potential approaches as guidelines.

Requirements

• The protocol should be resistant to token loss or minority obstruction.
  • Even if a majority stake in the NFT is burned or lost, there should be a way for the remaining active stakeholders to (over time) regain majority and reconstitute the NFT.
  • If a minority stakeholder is unreasonably blocking a majority decision to reconstitute, fair methods for buyout should be available.
• Any such measure should be resistant to manipulation by potential buyers attempting to trigger a fire sale

Avenues meriting exploration

• Issuance on a bonding curve
  • New stakes are issued incrementally on a bonding curve, diluting existing stakes
  • On a market with buy pressure, stakers need to keep actively buying to preserve their stake
  • Food for thought
  • Income may be distributed among existing holders, to offset the dilution of their stake
  • How token buyback on the curve could be implemented along this mechanism
  • How do different curve shapes affect the economics of the system
• Harberger tax
  • Holders of stakes in the NFT always have an open sell order at a self-assessed price
  • Each stakeholder pays a tax (lazily netted) to other holders based on this sell price
  • Setting a low sell price could potentially earn an income, but risks being bought out
• "RICKS", an approach for on-demand dilution through recurrent issuance
• "Mortys", Martingale shares for a fair randomized settlement process
• Another, simple, approach is to allow a threshold of holders to vote for the NFT to be put to auction.

Judging criteria

Potential impact: Envisioned impact of your project Novelty: Innovativeness of the project Technical: Does the code work? Is it secure? Design and UX: How is the look and feel and how intuitive is the design?

Track requirements:

Submissions must be open source (MIT license) Submission with a working prototype must be deployed live on the current testnet Submissions must list the addresses of their token contracts

Prize

Prize (1 team) $7,500 in tez (XTZ) at the time of payout

On bounty deliverables

We would like to provide guidelines on what we expect to see out of the hackathon. We are aware that the topics we're putting up for bounties are complex, and scope might have to be defined narrowly to allow delivery within the hackathon's timeframe.

The concrete deliverables we expect out of a bounty application are:

• Whitepaper describing the mechanism, with analysis from economic and game theoretical perspectives
  • The analysis doesn't have to be in-depth at this stage, but we want to see that thought was put into the idea
• Decentralized Minimum Viable Product showcasing all key components of the mechanism
  • Prioritize backend completeness over frontend flashiness
  • Write clean code following best practices
  • Cleanly separate various components of your architecture
  • Document enough to allow reviewers to fully understand what you did
• Writeup on what the product backlog for reaching what you'd consider 'completion' looks like

Keep in mind that the purpose of your deliverables are to convince people almost as smart as yourselves that your idea is viable, and you are capable of delivering a reliable, working product.

Developer resources

For those who are completely new to Tezos development, the dev portal is a good place to start https://developers.tezos.com/

Tacode, a p2p learning platform for Tezos teaches you how to build a Dapp on Tezos while earning tez https://tacode.dev

OpenTezos is an open-source wiki on all topics Tezos https://opentezos.com/

A guide how to mint NFTs on Tezos and how to build a simple NFT platform https://medium.com/ecad-labs-inc/how-to-mint-nfts-on-tezos-using-taquito-and-pinata-15a407078495

A react provider for Dapps to easily setup connection to Beacon/Taquito wallets https://github.com/tz-contrib/components-library/tree/develop/packages/react-wallet-provider

Awesomelist for Tezos https://github.com/tz-contrib/awesome-tezos

Tezos Stack Exchange is a useful resource to where you can see answers to technical questions regarding Tezos https://tezos.stackexchange.com/

If you do not find answers to your technical questions on the Tezos Stack Exchange, join the Tezos Developers telegram channel and ask away https://t.me/TezosDevelopers

[gitcoinbot]

Issue Status: 1. Open 2. Started 3. Submitted 4. Done

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This issue now has a funding of 1160.1361 XTZ (7540.88 USD @ $6.5/XTZ) attached to it.

• If you would like to work on this issue you can 'start work' on the Gitcoin Issue Details page.
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  • $5,552,304.19 more funded OSS Work available on the Gitcoin Issue Explorer

[gitcoinbot]

Issue Status: 1. Open 2. Started 3. Submitted 4. Done

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Work has been started.

These users each claimed they can complete the work by 1 week, 4 days from now. Please review their action plans below:

1) vaibhavgeek has started work.

Working on making fractional NFTs

Learn more on the Gitcoin Issue Details page.

[gitcoinbot]

Issue Status: 1. Open 2. Started 3. Submitted 4. Done

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Work for 1160.1361 XTZ (7471.28 USD @ $6.57/XTZ) has been submitted by:

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• $7,190,569.70 more funded OSS Work available on the Gitcoin Issue Explorer

[gitcoinbot]

Issue Status: 1. Open 2. Started 3. Submitted 4. Done

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Work for 1160.1361 XTZ (7622.12 USD @ $6.57/XTZ) has been submitted by:

1. @giraffekey

@jantinine please take a look at the submitted work:

• PR by @giraffekey

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[giraffekey]

I put my ethereum address by mistake. I cannot edit it on Gitcoin.

This is the correct one: tz1Qv5SvBMyvwPJ1Ro9T9xr3fDpfd29GgrHp

[Jantinine]

I put my ethereum address by mistake. I cannot edit it on Gitcoin.

This is the correct one: tz1Qv5SvBMyvwPJ1Ro9T9xr3fDpfd29GgrHp

I have requested it to gitcoin to be changed! Congratulation on your prize, as soon as your address is correct we will distribute the prize.