BUIP200: Tokenize Phase 2
Submitted by Singularity
19 October 2023
One key innovation in Nexa is its native token functionality. GROUP tokens can be created and managed using a simple transaction format. Thanks to the development of Tokenex and Tokenize, there are now tools to allow people to create tokens without developing an application from scratch. If we want people to be aware of an take advantage of Nexa’s token functionality then it is important that people have access to simple tools to do so. It is important that users and businesses get access to Nexa token functionality without needing to be a developer.
While Tokenex and Tokenize provide the core functionality for creating and managing tokens on Nexa, there is still a significant amount more capability we can unlock. By providing more advanced functionality, we can enable more advance projects to launch without any developer knowledge required, thereby reducing the barriers even further.
The purpose of this BUIP is to provide funding to design and develop a set of key extra features and functionality to be added to the Tokenize app as optional plugins. When complete, users will be able to add extra sets of functions to the Tokenize as they need. Making them optionaly will allow the app to remain uncluttered and relevant to the user’s need.
There will be at least 2 new sets of functionality: advanced tokens, and on-chain voting. If there is enough room left in the budget then we will also work on a third set of functionality: crowdfunded token launch.
The aim is to have the project completed by the end of March 2024.
Advanced token functionality will consist of giving token groups extra properties that may be useful for token creators. This functionality would be:
- Time-locked emission schedules: define the timed emissions of a token via smart-contract.
- Token vesting: divide up new tokens to addresses that have a defined vesting schedule.
- Rewards pot: provide rewards (Nexa or tokens) to token holders in a pot where they can optionally cash in currently tokens. I.e. opt-in dividends.
- Airdrop: Provide a list of addresses where a tokens should be sent to in equal or randomised quantities.
- Metadata hosting: generate and host your metadata document for tokens from within the Tokenize app.
- Address whitelist: Control who can hold tokens from a specific token group.
- Burn Fee: Set an amount of tokens that must be burnt with each transaction.
- Transaction Tax: Set an amount of tokens or Nexa that must be sent to a specific address as an extra fee for each transaction with a specific token.
- Permissioned: Assign a requirement for every transaction of a specific token group to get approval from a specific address before they can be sent.
The voting function will allow anyone to launch an on-chain vote through the use of tokens. A list of addresses will be able to be imported into the wallet, and then a new token group will be minted. The metadata document will contain the details of the vote following a simple open protocol.
Tokens will then be sent to the addresses in the imported list. Each address could receive either:
- an equal share,
- or a proportional share based on the holding of another token or Nexa,
- or a custom share.
A new set of voting option addresses will be generated where voters can send their votes. Vote tokens sent to these addresses will be tallied and the results then announced in the app. Votes not sent to the voting addresses within the defined voting period will become unlocked to the voting host so that they can melt them and all the other tokens again to gain back the Nexa locked in them.
It will be possible to set quorum rules for voting thresholds.
At this stage, there will be no functionality provided for on-chain consequences for the result of an on-chain vote.
Crowdfunding is an incredible way for projects to access capital they need to establish themselves and grow. It will be valuable to the Nexa ecosystem if functionality is provided for in the Tokenize app. People are much more likely to provide capital to projects if they know they will receive something in return. Blockchain technology is at a large advantage in that we can build this functionality directly into any crowdfunding model via smart-contracts, such that users will trustlessly receive a share of tokens based on a given amount or share of funding.
The crowdfunded token launch module should allow token creators to set up a crowdfunding campaign which ties directly into a guarantee of some tokens in return. The module should allow token creators to define the exact tokenomis and funding model they want to use and allow users to commit funds to the campaign, much like how funds are committed in kickstarter.com campaigns.
This BUIP requests $30,000 for the design and implementation of this webapp. The project will require design, front-end and back-end development, hosting, maintenance, and coordination with marketing. Up to $2,000 of the budget will be ring-fenced for 12 months of software maintenance. The elected BU officials: President, Secretary and Developer will jointly agree expenditures for this BUIP and will monitor progress through monthly reviews. This project would be operated in partnership with Otoplo Ltd…
This project will be maintained by Otoplo Ltd for a minimum of 12 months, including bug fixes, and any updates needed to keep the software functional and secure. This is included in the budget.
Any new software and design assets that result from this project will be jointly owned by B.U. Org and Otoplo Ltd.
- Significantly more awareness of Nexa’s token capabilities.
- More activity and buzz within the Nexa community around tokens.
- New advanced tokens launched by the Nexa community.
- New sub-communities built around new tokens.
- Increased interest around Nexa tokens from developers.