People creating new Index tokens are entitled to a share of trading fees. The starting assumption is that the minter address is currently the recipient of any fees destined for user (as opposed to DAO destination). Along the lines of Univ3 LP NFT’s where people can trade liquidity positions, this proposal suggests that people, entities or businesses can change the ownership of the fee allocation for creating new index tokens and that an NFT is an ideal mechanism to facilitate that.
If a new index token is particularly successful, the fees revenue that flows from the trading could be substantial. This receipt of trading fees means the ‘minter’ has generated something of value and it should be able to be traded.
Reasons why changeable fee ownership is a good idea:
- Encourages people to create popular index tokens
- Gives creators a physical asset they can see in their portfolio (NFT)
- Allows me to pass this fees NFT between wallets if my main wallet is compromised or I’m moving to new one for tax purposes etc…
- Allows me to realise asset value ‘today’ i.e. sell my future revenue based on historic performance data
- Acts as an advert for Phuture each time an NFT changes hands (Imagine an NFT that generates $500k fees revenue a year changing hands for $4-5m)
- Generates revenue for the DAO that potentially outpaces trading fees - if NFT’s regularly change hands and a e.g. 10% of sale value allocation reverts to DAO, the revenue could be substantial and potentially outperform the trading fees of the token (short-term)
What would the NFT need to do?
- Be created when new index tokens are minted
- Mint the name of the token, erc20 contract onto NFT face
- Mint the original asset creator onto asset face
- Mint the class onto asset face (e.g. v1,v2,v3) as technology changes
- Embed a fee return to PHTR DAO wallet into contract (fee fixed at 10% resale value) meaning resales net revenue back to the DAO
- Look cool like the Univ3 NFT’s
- In house market for exchanging fees NFT’s
- The ability to burn an NFT via DAO vote in the event a NFT is stolen via a compromised wallet (this issue exists for any compromised wallet)
- Phuture payment engine to recognise NFT’s via contract and current owner for payment allocation