99 / Universal Asset Signing
A Rari Foundation Proposal, the tech, the negotiation, the people

See Rito Rhymes explain the ERC proposal process for the planned ERC. He walks through the technical details of message signing and how this helps everyone, and the negotiation process with Rarible. This is a great example of how to get things done with foundations.

Timeline

00:00 Intro

00:31 What is UAS

01:29 The ERC

02:50 Mint moat

05:57 The solution

06:53 All about the fees

07:30 Free way better than cheap

08:02 Lazy mint

11:13 Backdoors

13:57 The Rari process

16:30 Ethereum had this problem too

17:15 Our positions

18:46 Rarible position

19:06 Proposal portmortem

27:11 Out of scope FTW

Participants

@fulldecent

William Entriken

@dtedesco1

Daniel Tedesco

@Legend

???

@Rito_Rhymes

Ritorhymes

@037

AKM

@lazererik

Lars

@cryptonerdylady

???

@domsvg

???

@fellasophic

???

@tommybytes

???

@iamnotbarkmeta

???

@yodude38

???

Episode notes

• Rito’s Universal Asset Signing presentation
  • New ERC – costless digital signing of NFTs
  • Mint-moat Effect – network effect for NFT marketplaces
• @rarifoundation

@rito_rhymes presentation / Universal Asset Signing / A Rari Foundation Proposal New ERC – costless digital signing of NFTs Mint-Moat Effect – network effect for NFT marketplaces Add a link to the slides!

Universal Asset Signing (UAS)

A Review of a Proposal Process for the Planned ERC

What is Universal Asset Signing (UAS)?

• Conceptualized by: William Entriken
• Functionality: A system allowing NFT listing for sale in any compatible marketplace without gas fees or transactions, just by signing.
• Core Mechanism: An ApproveForAllWithSignature function.
• Application: Extends to newly minted ERC-721/1155/20 tokens, potentially applicable on Ethereum and other platforms using these standards.
• Security and Compatibility: No backdoors, requires “UAS-Enabled” infrastructure.

Mint-Moat Effect

• Minting Economics: Listing an asset on its home marketplace (where it’s minted) is free/gas-free by signing. Listing on additional marketplaces incurs gas fees.
• Marketplace Dynamics: Creates a competitive advantage for larger marketplaces, discouraging listings on multiple or smaller platforms due to economic constraints.

Consequences of Mint-Moat Effect

• Barriers: High entry barrier for smaller marketplaces.
• Market Dynamics: Amplifies the ‘Winner-Takes-All’ effect for larger marketplaces.
• Diversity: Reduced marketplace and asset diversity.
• Economics: Disincentivizes competitive pricing and limits exposure for sellers.
• Environmental Impact: Increased gas usage and associated environmental concerns.

How UAS Comes into Play

• Market Democratization: Aims to create a more balanced marketplace landscape.
• Promotion of Diversity: Encourages innovation and variety in NFT creation.
• Seller Flexibility: Increases visibility and sales potential without incurring costs.
• Economic and Environmental Benefits: Reduces gas fees and enhances asset liquidity, with positive environmental implications.

Potential Market Dynamics Shifts

• Old and New NFTs: UAS enables wrapping of older tokens and bridging NFTs from other blockchains, enhancing liquidity and visibility.
• Adoption and Impact: Broad adoption required for maximum impact, with potential for significant shifts in current market dynamics.

Stakeholder Benefits Summary (at Scale)

• Token Creators/Sellers: Enhanced visibility and efficiency, better margins without gas fees.
• Small Marketplaces: Levels the playing field against larger competitors.
• Big Marketplaces: Long-term stability and opportunities from competitors.
• Non-Ethereum NFT Creators/Sellers: Easier access to the Ethereum market, fostering diversity and innovation.

Challenges and Opportunities

• Integration and Adoption: Key challenges include convincing big marketplaces to forgo their mint-moat advantage and adopt UAS.
• Community and Environmental Pressure: May compel marketplaces to adopt UAS due to demand from creators and concerns about environmental impact.

ERC Proposal Opportunity with Rarible-Entities

• Pitch: Proposing the integration and adoption of UAS.
• Entities Involved: Rarible, Rari Protocol, Rari DAO, $RARI token, and Rari Foundation.
• Governance and Control: Transition of control from Rarible to Rari DAO and Foundation.

Roadmap and Strategy for UAS Adoption

• Focus: Positioning UAS as a key feature within the Rari Protocol ecosystem.
• Roadmap: Detailed plan for adoption, including technical and strategic steps.
• Collaboration: Engaging with various stakeholders to ensure successful implementation and adoption.