30 / Floor price control

In this episode, the hosts discuss the concept of floor price control in NFT marketplaces. They explore different scenarios such as centralized, walled garden, and optimistic approaches to implementing floor prices, and the potential legal and regulatory considerations. They also touch on the topic of Islamic banking and finance, and the use of referral fees to mitigate gas costs.

Episode notes

• @DopeDobesMafia @_j4y3 from Michigan
  • The Foster Protocol / 0.5 floor price and dropping 0.05 per week until 0.15 // how to listen to transactions
  • Want to make smart contract know if someone is listing under 0.15.
  • TOP TEN: on-chain inspection of market prices
  • Seaport approach / decreasing price and Merkle proof
  • Scenario A: centralized, only the admin can report people
  • Scenario B: walled garden, only tx happen on YOUR market place
  • Scenario C: optimistic, anybody can access OpenSea and get prima facie evidence of defecting which is validated on-chain
  • Scenario D: Seaport moving price offers
• “Floor price” and “attribute bidding” are probably illegal
• “This is not religious advice” interest
• Wisdom of setting floor prices for assets without inherent value, what laws might this be breaking (USA)
  • Legal and regulatory considerations
    • SEC Framework doc
    • Four points of the Howie Test:
      1. An investment of money
      2. In a common enterprise
      3. With the expectation of profit
      4. To be derived from the efforts of others
    • Cartel / price fixing / price collusion
    • Interest in Islamic banking and finance
  • Economic considerations
• What if we buy it back?
  • Buy/sellback agreement is pawning – governed in state law
• From voxval0r: Seth Greene’s stolen Bored Ape NFT
• OpenSea Seaport Protocol
  • A relayer or referral fee allows third party to post transaction (also called ZERO GAS)