AIP 54: Develop Reference NFT Marketplace for use by NFT Communities

[agriimony]

Summary

• NFT creators want decentralized, dedicated marketplaces for their communities with customizable tokens, fee structures, and potentially custom themes or colors.
• We propose to develop a reference NFT marketplace for use by NFT communities that can be run directly or be forked and customized by creators.
• An AirSwap reference marketplace would be both decentralized (offering full control to creators) and assess lower fees making it an appealing alternative.
• Onboarding a single large NFT community could increase trading volume on AirSwap by ~$2M daily.

Specification

We propose that AirSwap contributors develop an open source reference NFT marketplace for use by NFT communities with the following basic features.

• Browse and display NFTs — NFT creators and their communities are interested in running their own community marketplaces. For example, Arke NFT is interested in setting up a dedicated space for his community to trade his NFTs and add utility to his social token.
• Swap ERC721s and EIP1155s — Several NFT projects have collections based on ERC721 and ERC1155 token standards. Both ERC721 and EIP1155 support is required.
• Configure tradable tokens — Web3 communities (e.g. Fingerprints DAO) want to be able to do OTC swaps of their own social tokens with each other. Arke NFT wants to be able to use his own social token to let community members trade his NFTs.
• Configure trading fees — Communities are interested in setting their own marketplace fees. Members benefit since they can pay lower fees as compared to alternatives. Marketplace fees can also help to support each project, as they can be channeled back to the project itself and used to grow the community.

Rationale

Today’s marketplaces are a one-size-fits-all product, aggregating as much trading as possible onto their platform to capitalize on transaction fees from secondary market sales. This approach has led to high fees and overall lack of control by creators for communities to expand their brand and often collect on IP rights and initiatives to fund their DAO(s).

Many social communities have ideas and capital, but don’t possess the technical acumen to create and service a marketplace, nor should the practical expectation be for each project to create their own independent marketplace.

Several creators and social communities have approached AirSwap inquiring about building an NFT marketplace that provides members with a space to make and take NFT trades. Communities want the power to customize which tokens are allowed on their own marketplace, which would typically be customized to the community’s own token(s). Furthermore, communities would also be able to take their own marketplace fees for their own treasuries as revenue.

AirSwap should provide a template for a front-end marketplace which projects can easily fork to build their own marketplace solution. AirSwap will provide the basic swap primitive to power these marketplaces. An existing protocol fee of 0.07% is assessed on all swaps through the AirSwap protocol.

AirSwap should provide a template for a front-end NFT marketplace which is easily forkable by projects, so they can build their own customized marketplace solution. AirSwap will provide the basic swap primitive to power these marketplaces. An existing protocol fee of 0.07% is assessed on all swaps through the AirSwap protocol.

Looking at the recent trading statistics of OpenSea, the largest NFT marketplace:

• OpenSea has around $30-50M in daily volume.
• The top 30 NFT projects each trade approximately 100-1000 ETH ($200K - $2M) every day.
• OpenSea’s current fee structure (flat 2.5% per trade) generates $5,000-$50,000 in fee revenue daily for OpenSea from each of the top 30 NFT projects. In total, the top 30 projects generate approximately $150,000-$1,500,000 in daily revenue for OpenSea.

If NFT communities instead build or navigate their trading activity onto an AirSwap white-label marketplace, the AirSwap DAO could generate an additional $140-$1.4K in fees daily (per project, in terms of attracting one of the current top 30 projects).

Currently, AirSwap assesses about $3K in daily fees. Onboarding just one big NFT project would have a substantial, positive impact on the fees Airswap generates daily.

The value offered by AirSwap contributors to create a reference marketplace for social communities can be a win-win for both the communities and AirSwap.

Copyright

Copyright and related rights waived via CC0.

Credits

Thanks to help from Koploseus, Jrb and Don in drafting this AIP

[sephrok]

Hey team and thank you @agriimony for directing me here.

I have an opportunity / problem and think I have imagined a solution as well. I am currently managing an artist and had the chance to take photos of and digitize their art for an online gallery. It's a very special kind of art that changes in different lights therefor I am creating animated NFTs for each art piece to be showcased as NFTs. Each art piece is of a specific person in the artist's community that inspired her. (I will call this person the MEDIUM) There is also a manager involved in processing this art (me) who I will refer to as the ADMIN.

I need to be able to produce an NFT that is connected to multiple wallets of the ARTIST, the ADMIN, the MEDIUM, the BUYER and potentially the GALLERY (digital or physical?).

So... anytime the NFT is traded or sold certain wallets will be integrated into the equation.

Example:
ARTIST- Jane
MEDIUM- DJ
ADMIN- Phil
GALLERY - a metaverse
BUYER - Joe Dirt
BUYER2 - Nole Ksum
AIRSWAP

Upon purchase of the NFT the BUYER receives the physical painting as well as the opportunity to create an immersive event inviting the MEDIUM to DJ (music) and the ARTIST to attend as well. The ADMIN would get commission for putting this together and the GALLERY would get paid from this transaction as well. The NFT contract will include % to go to each wallet for the ARTIST, MEDIUM, ADMIN, GALLERY. AIRSWAP gets the transaction fee.

5 years later

The artist appreciates her art in value. The art is now sold to BUYER2 along with the NFT. The same MEDIUM, ARTIST and ADMIN will be connected to the original wallet addresses to be included in potentially producing another event. These events could also include live art demonstration/paintings included in the sale price of the NFT contract. The contract will have included still the ARTIST, the MEDIUM and ADMIN % for production of the event at the appreciated value. AIRSWAP gets the transaction fee.

I hope I have explained this clearly enough. I will come back to this tomorrow with a fresh mind to rephrase or clarify.

EDIT: added in AIRSWAP transaction fee.

[agriimony]

Hey team and thank you @agriimony for directing me here.

I have an opportunity / problem and think I have imagined a solution as well. I am currently managing an artist and had the chance to take photos of and digitize their art for an online gallery. It's a very special kind of art that changes in different lights therefor I am creating animated NFTs for each art piece to be showcased as NFTs. Each art piece is of a specific person in the artist's community that inspired her. (I will call this person the MEDIUM) There is also a manager involved in processing this art (me) who I will refer to as the ADMIN.

I need to be able to produce an NFT that is connected to multiple wallets of the ARTIST, the ADMIN, the MEDIUM, the BUYER and potentially the GALLERY (digital or physical?).

So... anytime the NFT is traded or sold certain wallets will be integrated into the equation.

Example: ARTIST- Jane MEDIUM- DJ ADMIN- Phil GALLERY - a metaverse BUYER - Joe Dirt BUYER2 - Nole Ksum AIRSWAP

Upon purchase of the NFT the BUYER receives the physical painting as well as the opportunity to create an immersive event inviting the MEDIUM to DJ (music) and the ARTIST to attend as well. The ADMIN would get commission for putting this together and the GALLERY would get paid from this transaction as well. The NFT contract will include % to go to each wallet for the ARTIST, MEDIUM, ADMIN, GALLERY. AIRSWAP gets the transaction fee.

5 years later

The artist appreciates her art in value. The art is now sold to BUYER2 along with the NFT. The same MEDIUM, ARTIST and ADMIN will be connected to the original wallet addresses to be included in potentially producing another event. These events could also include live art demonstration/paintings included in the sale price of the NFT contract. The contract will have included still the ARTIST, the MEDIUM and ADMIN % for production of the event at the appreciated value. AIRSWAP gets the transaction fee.

I hope I have explained this clearly enough. I will come back to this tomorrow with a fresh mind to rephrase or clarify.

EDIT: added in AIRSWAP transaction fee.

Hm, so basically you'd want a custom NFT contract which would do a royalty fee split between 5 wallets?

Personally don't think you need AirSwap for this. Would suggest using something like 0xsplits (https://docs.0xsplits.xyz/getstarted/creating) to create a splitter contract which you can then use to collect royalty fees and then later split between the addresses. Just note that any built-in on chain fees can be easily circumvented by people who try hard enough (e.g. using other platforms, wrapping the NFT)

Let me know if I'm getting this right