Title: ERC_7648__NFT_Recursive_Synthesis_Asset_Standard
Category: ERCs

Author: MUADAO
Date: 2024-03-05T06:08:22.040Z

title: ERC-7648: NFT Recursive Synthesis Asset Standard
description: NFT Recursive Synthesis Asset Standard
author: MUAdao contact@muadao.build
status: Draft
category: ERC
created: 2024-03-04
requires: ERC-165, ERC-721
Abstract
The ERC-7648 standard introduces a recursive synthesis mechanism for creating new NFT assets by combining existing assets from ERC-20, ERC-721, ERC-1155, and ERC-4242 standards. This facilitates the creation of complex asset synthesis, recording the ancestry, royalty information, synthesis depth, and price of each new asset. It ensures creators and previous asset holders receive royalties upon the creation of new assets, fostering innovation and rewarding contributions in the NFT ecosystem.
Scope & Motivations
Recently the emerging popularity of Ordinals protocol on BTC enables the characteristic of assets synthesis and composability, and brings the imitations on Ethereum such as Ethscriptions
as well. While inscription of NFT or FT assets by op codes on the bitcoin blockchain is a compromise for lack of composable smart contract there. The purpose of ERC-7648 proposal is to bring this concept of assets synthesis and composability of assets in a technical way of native ERC token smart contract for native ERC assets such as ERC 721, or 165 etc.
ERC-7648 also includes a function of recursive royalty mechanism to incentivize the creative combination and synthesis of existing native Ethereum digital assets to create new ones which ensures fair compensation for all contributors, attracting more existing and new digital assets into Ethereum ecosystem sustainably.
Specification
The key words “MUST”, “MUST NOT”, “REQUIRED”, “SHALL”, “SHALL NOT”, “SHOULD”, “SHOULD NOT”, “RECOMMENDED”, “NOT RECOMMENDED”, “MAY”, and “OPTIONAL” in this document are to be interpreted as described in RFC 2119 and RFC 8174.
pragma solidity ^0.8.20;

interface ERC7648 {
  function royaltyInfo() external view returns (uint8);
  
  function ancestorTokenLength() external view returns (uint256);
  
  function ancestorToken(uint256 index) external view returns 
  (address contract_address, uint8 asset_type, uint256 token_id);
  
  function depth() external view returns (uint256);
  function price() external view returns (uint256);
}

Use Cases
Use Case 1: Multi-Generational IP artwork Creation and Royalty Distribution
Scenario Description
This use case explores the potential of the ERC-7648  standard in the realms of artistic creation and royalty distribution. It begins with an artist creating a unique digital artwork based on the ERC-721 standard. Utilizing the ERC-7648  standard, this artwork undergoes transformation and upgrading, merging with other artists’ works to produce a brand new composite artwork. This process is not limited to simple combinations of 2D artworks but also includes transforming existing NFTs into more complex and interactive 3D versions, and even splitting them into thousands of shares for broader sharing and ownership.
To illustrate with a specific example, a Bored Ape Yacht Club (BAYC) NFT, #2231, originally a popular 2D piece, is transformed by an artist through the ERC-7648  standard into a 3D version and further split into 1000 shares. This allows multiple investors to co-own this unique digital asset and share in its appreciation.
Implementation

The first-generation artist creates an ERC-721 artwork, such as BAYC #2231.
A second-generation artist utilizes the ERC-7648  standard, combining their creativity to transform this piece into a 3D version, splitting it into 1000 shares.
Over time, additional artists can join this process, using the ERC-7648  standard to integrate new creative elements into the existing art chain, creating more layers of composite artwork.

Value Proposition

Innovation Incentive: The ERC-7648  standard encourages artists to innovate continuously by combining existing artworks and creative elements to create new, value-added composite artworks.
Fair Revenue Distribution: Whenever a new composite artwork is created and sold, all artists involved in its creation and evolution receive royalties defined by the ERC-7648  standard. This includes the original NFT creator, the artist who transformed it into 3D, and any subsequent artists who contribute to the creative process.

This use case demonstrates how the ERC-7648  standard can foster diversity and innovation in artistic creation while ensuring artists receive fair compensation as their work generates economic value. Through this mechanism, ERC-7648  introduces new collaborative models and economic dynamics to the digital art and NFT domain, sparking interest and enthusiasm among artists and investors for innovative digital assets.
Use Case 2: In-Game Item Synthesis & Trading
Scenario Description
In a blockchain-based game, players can collect various NFT items, such as weapons, armor, or magical items. With ERC-7648 , players can synthesize these different items into new, more powerful items, which are also NFTs and tradable in the market.
Implementation

Player A has an ERC-721 magic sword and an ERC-1155 rare gem.
Using ERC-7648, Player A synthesizes these items into a new, unique magic sword NFT with special abilities.
The newly synthesized magic sword retains information about its ancestor items, and when further traded or synthesized, the original item owners receive royalties.

Value Proposition

Increased Game Depth: Allows players to create unique game items through synthesis, adding depth and strategy to gameplay.
Economic Activity Boost: The recursive royalty mechanism encourages player participation in the game economy, increasing item circulation and economic activity within the game.

Royalty Distribution Mechanism
ERC-7648 implements a mechanism for distributing royalties to all stakeholders in the asset chain upon the minting of a new asset, ensuring a specified percentage of the new asset’s price is distributed to each ancestor asset holder based on recorded royalty information.
Events

AssetCreated: Emitted when a new ERC-7648 asset is created, including the new asset’s address, ancestor assets’ addresses, and the new asset’s price.
RoyaltyPaid: Emitted when royalties are paid to ancestor asset holders, including the beneficiary’s address, the royalty amount, and the new asset address triggering the royalty payment.

Conclusion
ERC-7648 aims to revolutionize the NFT ecosystem by enabling recursive asset synthesis, fostering creativity, and ensuring fair compensation for creators and asset holders. This standard opens new possibilities for asset creation and ownership, enriching the digital asset landscape.
Copyright
Copyright and related rights waived via CC0.

Author: abcoathup
Date: 2024-03-05T23:43:34.676Z

ERC numbers are assigned by ERC editors/associates. they are now sequential, you don’t get to pick your own number.

Author: MUADAO
Date: 2024-03-07T04:59:37.318Z

Hey Andrew,
Big thanks for the heads up on the ERC number assignment process – really appreciated.  It’s crucial to get these technicalities ironed out early.
We’ve already updated our submission with the new ERC-7648 identifier and are eager to dive deeper into discussions with the community.
Quick intro on what we’re bringing to the table with MUA: it’s essentially a foundational layer for digital asset issuance and presentation. Leveraging the MUA7648 protocol, we enable multi-chain asset issuance, coupled with our unique MUAverse asset display layer. This tech is engineered for compatibility across various engines, facilitating effortless transitions of digital assets into 3D formats. What sets us apart is the ability for assets to undergo flexible fractioning and recursive compositions, paving the way for innovative reissuance methods. This significantly amplifies the diversity, visibility, and utility of digital assets in the ecosystem.
MUA stands at the forefront of the web3 creator community, hosting over 3K verified creators and studios. Our ecosystem spans MUA Academy, AI-powered editing tools, and the MUA Design Awards, with prestigious partnerships including MIT, CAFA, SUTD, exclusive global ISV status with Alibaba Cloud for metaverse solutions, and official supplier credentials for the Hong Kong government and Ant Group.
Twitter： https://twitter.com/MUA_MUADAO
Discord： Discord
Looking forward to making more strides together in the community!

Author: alimaomao
Date: 2024-03-11T01:42:33.297Z

interesting to create re-incursive nft synthetic assets in erc native way. do you have any concrete examples, ie. synthesis of any of several 721, like punk with a game nft? and what’s the royalty scheme?

Author: JXRow
Date: 2024-03-11T03:06:52.229Z

ineresting, what the price is using for? can you show the implement code?

Author: alimaomao
Date: 2024-03-20T04:13:25.955Z

as I understand, it may be optional. free mint or paid mint, set by deployer.
need to be confirmed by author

Author: tensaix2j
Date: 2024-05-06T09:01:32.009Z

This is an interesting concept. Looking forward to see it implemented.

Author: alimaomao
Date: 2024-05-27T02:50:08.095Z

https://docs.muadao.build/mua-dao/product/mua7648/erc7648
could check the doc

Author: alimaomao
Date: 2024-06-10T03:27:06.181Z

[type or paste code here](https://7648.muaverse.build/hyperdrive)

i see a campaign launched on mantle for ERC7648