EIP NFTs: How To Retroactively Fund Contributors To The Ethereum Ecosystem
November 24 2021 - 7:12AM
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Introducing the EIP NFTs. Only authors of finalized Ethereum
Improvement Proposals can mint these new NFTs that represent their
contributions to Ethereum as a whole. This is a way to, not only
recognize, but retroactively fund the work of the developers and
philosophers that make the Ethereum ecosystem what it is. How will
the market value these EIP NFTs? That’s what the experiment is
about. Related Reading | Why This Crypto Billionaire Abandoned
Ethereum Before we get into EIP NFTs, what’s an Ethereum
Improvement Proposal? According to the project’s
documentation: “Ethereum Improvement Proposals (EIPs) are
standards specifying potential new features or processes for
Ethereum. EIPs contain technical specifications for the proposed
changes and act as the “source of truth” for the community. Network
upgrades and application standards for Ethereum are discussed and
developed through the EIP process.” 4/ Each NFT that gets minted
implements #ERC2981 which means that royalties will be paid in
perpetuity to the minting address (i.e. EIP author). The artwork is
heavily inspired by @Uniswap v3 LP NFTS by @crypt0glitter. You can
see the collection here: https://t.co/ba5hBSH7n0 — blainemalone
(@blainemalone) November 17, 2021 Retroactive Public Goods And The
Results Oracle Before we get to EIP NFTs, we have to explore the
Retroactive Public Goods idea. As with everything in the Ethereum
ecosystem, this comes from the mind of Vitalik Buterin. “The core
principle behind the concept of retroactive public goods funding is
simple: it’s easier to agree on what was useful than what will be
useful,” Vitalik explains in the article that poses the idea. The
Optimism PBC organization expands on it: “So… what would happen if
suddenly, exits did exist for public goods projects? An exit
determined by how much public good has been created by the project
rather than quarterly profit. Would we see more vigorous investment
and innovation on technology that maximizes community benefit?
Would we see more nonprofits thriving rather than surviving?” We're
LIVE on Ethereum mainnet! 🎉 EIP Authors can now claim their EIP
NFTs representing their contributions.https://t.co/zMgKr3eWVC — aka
labs (@aka_labs_) November 17, 2021 How to answer those rhetorical
questions? The article offers a solution, again in Vitalik’s own
words. “A DAO, which we can call “the Results Oracle”, funds public
good projects. Long term, the results oracle can be funded by
protocol fees (eg. if implemented by an L2 project, sequencer
auctions are one candidate). But unlike other public goods funding
DAOs, the Results Oracle funds projects retroactively, rewarding
projects that it recognizes as having already provided value.” ETH
price chart for 11/24/2021 on FTX | Source: ETH/USD on
TradingView.com What Are The EIP NFTs, then? The people behind the
AKA Labs took the Retroactive Public Goods concept and stripped it
of complications. They developed a first implementation that
doesn’t need to raise funds or to create a DAO. Let’s read their
explanation. “Acknowledging the fact that building a fully
functional “results oracle” would be a large undertaking. This
project dips its toes in and tries to shine a light on the space.
The fun part of this experiment is observing how the market decides
to value each EIP NFT. We fully encourage EIP authors to mint their
NFT/NFTs and participate in the experiment.” To mint EIP NFTs
“users must prove that they’ve authored/co-authored an EIP.” So
far, nine of them exist, but they haven’t produced any financial
activity. This is where the Ethereum community comes into play. The
process of valuation starts with them. By making offers and funding
the retroactive recognition themselves, they will define how much
each of the NFTs is worth. Will the most important proposals get a
higher valuation? Or will the community value them all similarly?
Related Reading | Christie’s Will Auction Original Art From Gary
Vee‘s Veefriends NFT Collection It’s worth noting that “each NFT
that gets minted implements #ERC2981 which means that royalties
will be paid in perpetuity to the minting address.” The minting
goes through the EIP’s author address, AKA labs don’t get a cut.
The project is a nonprofit, just like the projects they’re trying
to help thrive. Will the EIP NFTs experiment succeed or fall
by the wayside? That’s for the Ethereum community to decide.
Featured Image: Screenshot from the EIP NFTs Open Sea page | Charts
by TradingView
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