Picchi

usage permission through staking

FP Collection "usage permission" and PRINTS staking

The Problems

• The FP members want to be able to hold one of the pieces of the FP collection as it is their own.
• The FP DAO needs to increase the PRINTS token utility

Solution/Goal Allow FP members to hold FP collection pieces through PRINTS staking, creating utility to members and real usage to PRINTS.

As a security measure, the NFT will not be transferred to the FP member, but a “wrapped version” will be minted.

How it works

• A FP member can mint a "wrapped version" of a FP collection piece NFT. The new NFT will be identical to the original (same metadata) and unique. The original piece doesn't leave the FP vault.
• In return, the FP member will stake a certain amount of PRINTS, above the minimum defined per NFT.
• The wrapped NFT is not transferable by the current owner and it's burned once the PRINTS are unstaken.
• Only 1 person can hold a wrapped version of a single NFT.
• Once minted any other member can outbid the staken qty and be the new owner of the wrapped NFT. (TODO: define a minimum guaranteed hold period, and a minimum new bid percentage increase). The previous owner gets its staken qty back immediately.
• If the original NFT leaves the wrap contract (FP Vault), the metadata should return an empty state. The wrapped version holder can still unstake and get its PRINTS back

Limitations

• Once the wrapped version is not the real NFT, any ownership verifications or airdrops will not work in favor of the wrapped version holder.
• Some collections might not be fully compatible with it, if their metadata needs further treatment by the exchanges APIs
• Some collections Terms of Use might not allow such derivatives to be created.

Risks By design, the proposed solution has very limited risks. The major risk is a smart contract bug, which can impact the staked PRINTS.

Example John always wanted to hold Autoglyph #181 is his private collection. The NFT is owned by FP, but as a member, he can stake 10k PRINTS and mint a wrapped version to his wallet. This wrapped version is identical to the original, unique and backed by the real one. However, it cannot be transferred and if John unstake his PRINTS, the wrapped version would be burned.

Use cases: User:

• Connect Wallets
• List all available FP NFTs and current status of each
• Mint a wrapped version (and stake)
• Unstake and burn
• Outbid a current holder

Admin:

• Add/remove NFTs on the available list
• Define minimum guaranteed hold period and the minimum new bid percentage increase
• Force unstake and burn
• Define/edit staking ERC-20 contract address
• Define/edit the Vault address

Project Scope:

• Smart contract development
• UI ideation/creation
• Frontend development
• Training and awareness efforts

Team: Project manager TBD Frontend dev - Arod Smart Contract dev - Arod UI/Designer - TBD

Investment: Development cost: ~ 7 ETH Development time: ~ 30 days

Further considerations & Future:

• The source code will be released as CC0 (public domain)
• Flash loans to allow wrapped versions to claim airdrops