There’s a special type of ERC20 token that allows users to buy and sell directly to and from the token’s contract. Simon de la Rouviere calls them Bonded Curve Tokens and Bancor calls them Liquid Tokens. Both refer to a contract which will accept ETH or another EC20 token in exchange for minting new tokens of the contract’s denomination. The contract will hold that original ETH or ERC20 in reserve for when someone wants to sell the tokens back.
Finally we can get down to the thought experiment I’ve originally proposed: What would happen if an ERC721 NFT were owned by the address of an ERC20 Bonded Curve/Liquid Token? Essentially a non fungible asset would become fungible again.
m0t0k1ch1.icon RFT の提案
for Nested Curation Market
On one level might be a General Investment Token (GIT) bonded to ETH or a stable-coin. This GIT might be used to buy different Digital Asset Registry Tokens (DARTs) that could represent whole genres of NFTs; Imagine a CryptoKitty DART, a CryptoCelebrity DART and a CryptoPunk DART. The final level would be the Re-Fungible Token (RFT), purchased with DART and representing partial ownership in a single NFT (relevant to the topic of the bonded DART of course). Prices of the NFT bound RFTs should signal the success of individual artworks, prices of DARTs signal the success of whole genres of Digital Asset Registries and the price of GIT signals the success of the entire system.
Preventing pirating of copyrighted material is a cat and mouse game that shouldn’t be pursued. Time is better spent offering easy access to high fidelity content at a subscription price. In the case of music this has already occurred with promising success but it might be improved by use of an RFT. Consider the album that drops and is only accessible to download and stream through a service that can verify you are a token holder representing that album. You’d buy tokens because you want easy access and you know that you can sell the tokens back when you’re tired of listening to it. Alternatively ownership of these tokens may give access or discounts to physical events. Either way the price of the tokens would rise with the popularity of the music. Inflation could ensure that the musician makes money on all of these transactions. The musician would also be smart to invest at the launch of the token; being the first buyer ensures that the price will never drop below what was paid. In this scenario, fans stand to earn alongside the creator and will do more to support their mutual success.