NCFP-17: [Draft] Tokens on Nyzo

Planned features:

  • Layer-2 fungible tokens protocol and implementation
  • Issue ERC-20 like tokens on Nyzo
  • 1 µ∩ only transaction fee - no matter the transferred token amount
  • Paid token registration to avoid spam (paid to the cycle wallet)
  • Customizable decimal settings
  • Public, open source specifications and reference workflows
  • Explorer and API on nyzo.today
  • Does not need any change to the core protocol nor verifier code
  • Simple interface and use of nyzo strings to interact with tokens: no programming is necessary
  • Can evolve and use the cycle to adjust various fees with time.

Rationale:
Nyzo fast block time and finality is a huge advantage. Supporting tokens on Nyzo will demultiply the possible use cases and allow awesome features, like for instance nETH nBTC (ETH and BTC wrapped on Nyzo), with fast and almost feeless transactions.
This tokens implementation is completely transparent to the first layer: no change to the protocol, consensus nor verifier is required.
Nyzo will be able to provide 7s finality tokens transfer, for many use cases (not only financial transactions).
This also addresses a critic of nyzo (high tx fees) since the tokens tx fees are 1 micronyzo only.

Devs: iyomisc and myself

Phase 1: Working baseline tokens implementation
Proposed amount: 50,000 ∩
Delay: 1 month from cycle tx validation.
Dedicated address: id__85mgCI12L3WshWfHHM8_u0Qjx6WZ9ha0qBpRPV3GGgYy5ZWY2kzb

8 Likes

I really like this proposal, especially because:

  1. Potentially unlock a lot of use cases
  2. Doesn’t require changes to the protocol and verifiers, so it doesn’t open criticalities to base functioning of NYZO

Regarding amount is a bit difficult to judge, something between 50’000∩ - 100’000∩?

Definitely support. Wrapped tokens would be essential for plugging into the awesome existing DeFi ecosystem. Higher liquidity also helps.

I think 1-2 BTC minimum (150,000-300,000 n) would be fair for the final project, and it would make sense to release funds for interim milestones:

  1. Working baseline token implementation (25%)
  2. Working wrapped assets demonstration (25%)
  3. Adoption of wrapped asset by at least one decentralized exchange listed on https://coinmarketcap.com/rankings/exchanges/dex/ (50%)
1 Like

Thank you @jimtalksdata for the reward estimation.
I agree on the proposed range of 150,000-300,000∩.

Rewarding real adoption with the third milestone I found it very important.

You have my support! I agree with the estimate

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That’s good. Full support.

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Full support here. Great proposal

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Love the idea and agree with the proposed reward of 150,000 - 300,000.

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Agree. Full support

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I fully support this. I think the amounts are fine as long as the devs are happy with them. Would be nice to see this happen soon.

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@NyzoSy what is your opinion regarding the milestones proposed by @jimtalksdata?
Could you please provide a timeline estimation for such milestones?

This tx will pass without a doubt I think. Jim’s proposal looks good

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I’ll add some insight and time estimate soon.

Edited the first post with amount and delay.

Agree and support

I think I saw a wrapped asset demonstrated recently. Is this still under testing?

We’ll go on with wrapped assets once the Nytro hackathon is done, or at least started.

When starting this project, we hoped there would be significant tokens activity following (meme tokens, shares for ventures, governance tokens, in game tokens… like there is on ETH or SOL).
In practice, it would seem there is little interest - so far - for ERC-20 alike tokens, and the craze is all about NFTs.
That’s something we initially planned to release later on as an upgrade to the protocol, but given the demand for it - including in the context of the Nytro hackathon - we decided to release the protocol and ecosystem upgrade earlier, before wrapped tokens and bridges.

So, NCFP-17-NFT is all about the NFT protocol.
ERC-20 based tokens allowed to define very crude limiteds nfts, by issuing tokens with 1 integer unit only.
This is however quite pricey, feature limited, and could play havoc by polluting the tokens namespace.

The upcoming NFT protocol is an extension to the tokens protocol: same logic and technology, layer-2, no change to verifiers.

  • Compatible with the current Tokens protocol

  • NFT class (ie “collection”) can be issued, with unlimited or max supply (limited art for instance).

  • Nytro Tokens can interact with Nytro NFT (you can send a regular Nytro Token to a Nytro NFT)

  • Nytro NFT have limited support for data (limits are due to nyzo core transactions limited size)

  • Nytro NFT data storage format is the responsability of the application layer, but we will suggest a few structures for common uses like cards, picture, audio or video NFTs.

  • NFT data is split in two categories: class owner data (the app/user with rights on the collection) and user data.
    That way, the app (class owner) can update restricted properties like life point, while user can update other properties (say, nickname)

  • This NFTs protocol will make it possible to have collectibles on Nyzo (with extended storage on ipfs, like eth NFTs), NFT for gaming (see hackathon) and all other possible uses of NFTs with variable state/data.

We will release:

  • The full protocol doc and specs
  • Test vectors
  • A reference implementation in python
  • An NFT explorer
  • Helper tools like for the Nytro tokens

Phase 1b: Working NFT implementation
Proposed amount: 25,000 ∩
Delay: 1 month from cycle tx validation - We’ll try to make it sooner
Dedicated address: id__85mgCI12L3WshWfHHM8_u0Qjx6WZ9ha0qBpRPV3GGgYy5ZWY2kzb

Future roadmap:

Just for info, the next related things on our roadmap are:

  • more tools around Tokens and NFT
  • free support for anyone building on top
  • bridges and wrapped assets (need to solve the custodian issue)

Last thing, a huge feature we have in mind:

  • Nyzo operated DEX. A layer-2, fast and decentralized, orderbook based DEX working with any Nytro Token and NFT, permissionless.
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NCFP17-NFT Cycle TX has been issued
https://nyzo.today/votes/9d15ad28810fabebee76d2712cdb4315fe95d0cf247363bb8ba877f6fc6256ce2e6dd5ff52b28cdbf023f278bb7430376fd4f4adab73a0f72f07fda60244eb0c

We’re doing our best to release this asap as several projects from the Hackathon expressed the need for NFTs.
The collected funds will be used not only for our personal reward, but also to reserve NFT classes as demo and faucet, allow for dedicated help and support to NFT builders, documentation and maintenance of the Nytro protocol, guidelines and usage scenarios, tools & helpers, API and cover the related servers costs.

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Great Proposal, great Job!

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