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Update ERC-5173: Update ERC-5173
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dRadiant authored Jul 11, 2024
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## Abstract

This EIP introduces the NFT Future Rewards (nFR) extension for [EIP-721](./eip-721.md) tokens (NFTs). nFR allows owners to benefit from future price appreciation even after selling their tokens. This establishes a Provenance Value Amplification (PVA) framework where creators, buyers, and sellers collaborate to collectively increase value. This innovative approach disrupts the current zero-sum trading paradigm by creating a fairer and more rewarding system for all participants.
This ERC introduces the NFT Future Rewards (nFR) extension for [ERC-721](./eip-721.md) tokens (NFTs). nFR allows owners to benefit from future price appreciation even after selling their tokens, without the need for market prediction. This establishes a Provenance Value Amplification (PVA) framework where creators, buyers, and sellers collaborate to collectively increase value. This innovative approach disrupts the current zero-sum trading paradigm by creating a fairer and more rewarding system for all participants.

[ERC-5173](./eip-5173.md) fosters a sustainable and collaborative trading environment by aligning the interests of service providers and users. Compliant token owners enjoy price increases during holding and continue receiving nFRs after selling. By eliminating competition and promoting shared prosperity, nFR fosters strong bonds within the NFT ecosystem. The framework ensures equitable profit distribution across all historical owners, including the original minter.
[ERC-5173](./eip-5173.md) fosters a sustainable and collaborative trading environment by aligning the interests of service providers and users. Compliant token owners enjoy price increases during holding and continue receiving nFRs after selling. By eliminating competition and promoting shared prosperity, nFR fosters strong bonds within the NFT and crypto token ecosystems. The framework ensures equitable profit distribution across all historical owners, including the original minter.

## Motivation

The current trading landscape is often marred by unfair practices like spoofing, insider trading, and wash trading. These activities disadvantage average traders caught in cycles of fear and greed. However, the rise of NFTs and their inherent transaction tracking capability presents an opportunity to disrupt this unequal value distribution.

ERC-5173 introduces a standardized profit-sharing model across the entire ownership history of an NFT, benefiting all market participants. It creates a Flow of provenance where buyers and owners are rewarded for their contributions to price discovery. This model fosters aligned interests and establishes a mutually beneficial economic structure for both buyers and sellers.
ERC-5173 introduces a standardized profit-sharing model across the entire ownership history of an NFT, benefiting all market participants. It creates a "Flow of Provenance" where buyers and owners are rewarded for their contributions to price discovery. This model fosters aligned interests and establishes a mutually beneficial economic structure for both buyers and sellers.

NFTs can accurately reflect the contributions of their owners to their value. By recording every price change of each ERC-5173 token, we can establish a Future Rewards program that fairly compensates owners. This program aims to level the playing field and provide average traders with a better chance at success.
NFTs can accurately reflect the contributions of their owners to their value. By recording every price change of each ERC-5173 token, we can establish a Future Rewards program that fairly compensates owners. This program aims to level the playing field and provide average traders with a better chance at success, without the need for complex market predictions.

In addition to promoting this novel gift economic model, the nFR framework discourages illicit activities that circumvent artist and marketplace rules. This fosters a transparent and trustworthy trading ecosystem.
In addition to promoting this novel "gift economy" model, the nFR framework discourages illicit activities that circumvent artist and marketplace rules. This fosters a transparent and trustworthy trading ecosystem.

Applied to the exchange of wrapped [EIP-20](./eip-20.md) tokens, this value-amplification construct has the potential to transform the asset transaction sector by integrating identities within the time and sales (T&S) data. This inclusive attribute affords a holistic perspective of each trade, infusing an additional layer of depth into the trading experience.
Applied to the exchange of wrapped [ERC-20](./eip-20.md) tokens, this value-amplification construct has the potential to transform the asset transaction sector by integrating identities within the time and sales (T&S) data. This inclusive attribute affords a holistic perspective of each trade, infusing an additional layer of depth into the trading experience.

## Specification

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