Key terms
This describes the concept, categories and terms used in the documentation.
- DAO: This is a Decentralized Autonomous Organisation
- DDS (DDN): This is a Decentralized and / or a Distributed System (Network).
- Index: This is the core component of the project and its innovation. A quantitative indicator based on date, data from the Protocol, and Oracle to assess the Market (onchain).
- Project: This is DAO Envelop and all sub-projects (services) created within it.
- Protocol: This is the core component of the Project - the set of smart contracts related to NFT mechanics (onchain).
- Market: This refers to any market within the p2p-systems.
- Token: Token is the Project's native token with the ticker symbol NIFTSY.
- White paper: This refers to the document of the Project which describes its architecture, technology stack, DAO economics and communication rules.
Collateral - assets/collateral in the form of fungible and non-fungible tokens that add value to the wrapped NFT. They are held on the Protocol contract and can only be received by the owner (or designated beneficiary) of the wrapped NFT (wNFT) at time of the wrapping. The Collateral is divided into Deposited Collateral and Transaction Collateral.
Deposited collateral - fungible and non-fungible tokens allocated inside a wrapped NFT and to a Protocol contract.
Transaction collateral - fungible tokens accumulated as additional fee for a wrapped NFT transfers. This collateral should be set by the creator of the wrapped NFT within wrapping conditions.
The unlock date of the wrapped NFT is a parameter that can be set by the creator of the wrapped NFT when wrapping. If the creator has specified an unlock date, the current owner will not be able to unwrap the wrapped NFT until that date has occurred. The start of the lockout period starts at the moment the wrapped NFT is created. During the locking period the owner of the wrapped NFT can transfer it to another user.
The blocking of a wrapped NFT by Transaction collateral amount is a restriction set by the creator of the wrapped NFT for the unwrapping operation. The owner cannot unwrap a wrapped NFT until a certain amount of transfer fees has been accumulated.
Beneficiary - the user whose address the creator of the wrapped NFT has designated as the recipient of royalty income from each transfer transaction of the wrapped NFT.
The transfer fee is the fee that the creator of the wrapped NFT has ordered to be charged for its transfer. The fee may consist of two parts:
- The part that accumulates for the wrapped NFT as a Transaction Collateral;
- The part that immediately transferred to the beneficiary address as Royalty income.
The fee is charged in fungible tokens.
The technical token of the DAO Envelop project is an ERC-20 compliant token. It can be used as a token for the default transfer fee. It is not required to have this token on the sender's balance, but simply minted the correct amount for each transfer. It has no value; its main purpose is to demonstrate the protocol's capabilities in terms of Royalty and transactional collateral. Users who choose this transaction fee option can finalise its tokenomics on their own.
The white list of fungible tokens is a list of contract addresses whose tokens can be used as collateral or token of a transfer fee. The DAO Envelop project team generates this list, thereby protecting users of the Protocol from tokens whose contracts contain malicious code or errors. Creators of wrapped NFTs can use tokens from this list to choose in which token to deduct the transfer fee. Users can make deposits of collateral for a wrapped NFT with tokens from this list.
Royalty Income is the fungible token income that the beneficiary of the wrapped NFT receives from each transfer of the wrapped NFT. It is calculated as % of the wrapped NFT transfer fee.
Blacklisted NFT projects is a list of contract addresses of original NFTs not allowed to be wrapped in the protocol. Those contracts contain malicious code preventing the use of the original NFT or breaking some methods of the Protocol. The list is generated by the DAO Envelop project team.
The original NFT is the NFT for which the wrapped NFT is created. The original NFT is stored on the protocol contract after wrapping is to be returned to the current owner of the wrapped NFT after the unwrapping procedure.
A wrapped NFT is a NFT created by the protocol contract and based on the original NFT. It may contain collateral in the form of fungible and non-fungible tokens.
The wrapped NFT transfer fee token is the contract address of a fungible token in which the creator of the wrapped NFT has instructed the sender to withhold the wrapped NFT transfer commission. This fungible token contract address cannot be changed, once set during the wrapping process
Unwrapping is the process of burning the wrapped NFT, transferring the original NFT to the owner of the wrapped NFT. Only the owner of the wrapped NFT may start the proces.
Wrapping is the process of transferring the original NFT to the Protocol contract and creating a wrapped NFT for it, which will be owned by the user who started the process.
Wrapped NFT: It's a transfer of blockchain modification operation,whereby the new owner receives it via the transfer made by the previous owner.
Last modified 1mo ago