ERC-1190 Tokens

Shaan Ray
codeburst
Published in
4 min readJul 19, 2018
A new token standard.

A new Ethereum Token Standard called ERC-1190 has been proposed. This token is designed to be a non-fungible token for the payment of royalties.

The ERC-1190 token will enable the creator of a unique digital object, like a work of art or an object in a game, to benefit automatically every time the rights to that object are used, regardless of whether it is next week or 30 years from now.

Artists and programmers can create digital objects and embed them into an ERC-1190 token.

An ERC-1190 license holder can hold either a Creative license, or an Ownership license.

Three transaction types are possible with this token standard:

· A sale of the ownership license,

· A sale of the creative license, or

· A rental of the digital asset to a third party for a fixed period of time.

Let’s take the example of an in-game object. The object’s creator embeds the object and its ownership information into an ERC-1190 token.

Use case 1: Creator keeps the Creative license and sells the Ownership license

A digital asset creator creates an asset and sells the ownership license to a third party (in this case, a gamer), but keeps the creative license. The creator gets the full revenue from the initial sale of the ownership license.

The Creator keeps the creative license and sells the ownership license.

Use case 2: Creator gets Revenue from the change in Ownership value

The gamer, who now holds the asset’s ownership license, can use the object as long as they want.

If the in-game asset gains notoriety and becomes a popular part of the lore within its game, its value can rise significantly.

Once they decide to sell the ownership license, they keep most of the revenue from the sale, with a fixed portion (in this case, 10%) of the sale price passing automatically to the holder of the creative license (in this case, the creator).

Every time the ownership license changes hands, the holder of the creative license automatically receives 10% of the revenue from the sale.

Creator gets revenue from the change in ownership license.

Use case 3: Creator gets Rental Revenue from the Ownership license holder

The holder of the ownership license can also rent out the asset to a third party. The holder of the creative license will get a portion (in this case 10%) of any rental revenue.

The creative license lets the creator receive income from their digital asset over time.

Meanwhile, the holder of the ownership license has exclusive decision-making ability and keeps the majority of revenue from any sale or rental.

The Creator gets rental revenue from the ownership license holder.

Use case 4: Creator sells Creative license

The creator can also sell the creative license and keep all the revenue from that sale. Then, however, the new holder of the creative license would become entitled to receive a portion of all future royalties resulting from any transaction involving the digital asset.

If a digital asset gains value as it ages, or if its ownership license tends to be subject to frequent sales or rentals, the creative license for that asset increases in value too. In some cases, the value of an asset’s creative license could far exceed that of its ownership license.

Creator sells creative license.

Upshot

Since the proposed ERC-1190 token would be blockchain-enabled, the ownership and transaction history of the ownership license and the creative license of each ERC-1190 token would be easy to query and verify. Any issues stemming from legal rights and related ownership issues could be resolved by reference to a public, immutable history.

We designed this proposed token to assist with Digital Rights Management. This potential standard will allow creators of different digital assets to monetize them in flexible ways. Apart from in-game objects, this potential token could hold other digital assets such as music, images, artwork, contracts and others.

Video: Introducing the ERC-1190 Token

The proposed ERC-1190 token standard seeks to allow creators, users, and entrepreneurs to each focus on what they do best. It aims to encourage collaborations that work toward everyone’s creative, and financial, benefit.

Click here to check out the code.

Click here for a brief, simple explainer video.

The ERC-1190 token standard has been proposed by Aalim Khan & Shaan Ray.

Shaan Ray

Follow Lansaar Research on Medium for the latest in emerging technologies and new business models.

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Thanks bro! Nice and easy to understand.

Awesom bro!
Thank you so much!

Hey Ravi,
Cool posts on constraints!
My name is Michael and I’m a Content and Community Manager at DZone. Anyway, one of our writers contacted me about reaching out to see if you be interested in sharing these posts in our Mobile Zone. Please contact…