introduction into the EIP NFTs. Only authors of finalized Ethereum improvement proposals can shape these new NFTs, which represent their contributions to Ethereum as a whole. This is a way to not only recognize but retrospectively fund the work of the developers and philosophers who are making the Ethereum ecosystem what it is. How will the market rate these EIP-NFTs? That’s what the experiment is about.
Related reading | Why this crypto billionaire left Ethereum
Before we dive into EIP-NFTs, what is a Ethereum improvement suggestion? According to the project documentation:
“Ethereum Improvement Proposals (EIPs) are standards that specify potential new functions or processes for Ethereum. EIPs contain technical specifications for the proposed changes and act as a “source of truth” for the community. Network upgrades and application standards for Ethereum are discussed and developed in the EIP process. “
4 / Every NFT that is minted uses # ERC2981, which means the royalties are paid to the mint address (i.e. EIP author) on a permanent basis.
The artwork is heavily inspired by @Uniswap v3 LP NFTS by @ crypt0glitter. You can see the collection here: https://t.co/ba5hBSH7n0
– blainemalone (@blainemalone) November 17, 2021
Retrospective Public Goods and Oracle Outcomes
Before we get to EIP-NFTs, we need to examine the idea of retroactive public goods. As with everything in the Ethereum ecosystem, this comes from the mind of Vitalik Buterin. “The rationale behind the concept of retrospective funding of public goods is simple: it is easier to agree on what has been useful than what will be useful,” explains Vitalik in the article that raises the idea. The organization Optimism PBC builds on this:
“So… what would happen if there were suddenly exits for projects with public goods? An exit that is determined by how much public good has been created by the project, and not the quarterly profit. Would we see more investment and innovation in technologies that maximize community benefits? Would we see more nonprofits thriving rather than surviving? “
We are LIVE on the Ethereum mainnet! 🎉
EIP authors can now claim their EIP NFTs representing their contributions. Https://t.co/zMgKr3eWVC
– aka labs (@aka_labs_) November 17, 2021
How do you answer these rhetorical questions? The article offers a solution, again in Vitalik’s own words.
“A DAO, which we can call“ the result oracle ”, funds charitable projects. In the long term, the result oracle can be financed through protocol fees (e.g. if it is implemented by an L2 project, sequencer auctions are a candidate). But unlike other DAOs that fund public goods, Results Oracle finances projects retrospectively and rewards projects that it recognizes have already provided value. “
ETH price chart for 11/24/2021 on FTX | Source: ETH / USD on TradingView.com
Then what are the EIP-NFTs?
The people behind AKA Labs have taken the concept of retroactive public goods and freed it of complications. You have developed an initial implementation that does not require funding or a DAO to be created. let us read your statement.
“Acknowledging the fact that building a fully functional“ results oracle ”would be a huge undertaking. This project dips its toes and tries to light up the room.
The fun part of this experiment is watching how the market decides to value each EIP-NFT. We wholeheartedly encourage EIP authors to shape their NFT / NFTs and take part in the experiment. “
In order to mint EIP-NFTs, “users must provide evidence that they authored / co-authored an EIP”. Until now, nine of them existbut they did not generate any financial activity. This is where the Ethereum community comes in. The evaluation process begins with them. By submitting offers and funding retrospective recognition, they determine how much each NFT is worth. Are the most important suggestions rated higher? Or will the community appreciate them all equally?
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It is worth mentioning “Every NFT that is embossed uses # ERC2981, which means that the license fees are paid permanently to the embossing address.” The embossing takes place via the author’s address of the EIP, AKA laboratories do not receive a cut. The project is non-profit, just like the projects they want to help make it thrive.
Will the EIP-NFTs experiment succeed or fall by the wayside? That has to be decided by the Ethereum community.
Featured Image: Screenshot from the EIP NFTs Open Sea page | TradingView charts