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ERC-6551 Token Binding Account: What is the wallet address bound by NFT?

2023/4/12

Future Primitive, co-founded by early members of CryptoKitties and Dapper Labs, along with the founder of wallet company Bitski, has introduced a new concept: Token-Bound Accounts ERC-6551. They believe that this concept is the opposite of soulbound tokens, as it permanently binds an NFT to a wallet. The design is intended to drive new use cases, such as making PFPs a true on-chain identity.

Table of Contents

Issues Addressed by ERC-6551

Future Primitive believes that the main problem with NFTs is that their value largely comes from speculation and activities outside the blockchain. The NFT token standard has not changed in the past, and the biggest progress in the ecosystem has come from community building and the composability of images.

They aim to use ERC-6551 to allow existing and new NFTs to add ownership without the need to modify existing ERC721 contracts, enabling people to explore new use cases.

Each NFT will be able to hold ETH and other ERC 20, 721, 1155 tokens.

What Can NFT Identities Own with ERC-6551

Future Primitive gives examples such as digital clothing and items like CloneX and Doodles; models that allow holders to earn ERC 20 tokens with Bored Ape Yacht Club (BAYC); and participation proof with POAP.

It could also allow an NFT with diverse objects and tokens to be traded as a single item on OpenSea.

Or construct an NFT on-chain identity within a social model.

Preserving the History of NFTs with ERC-6551

Future Primitive brings new perspectives to NFTs. It illustrates the differences in scenarios with and without token-bound accounts under ERC-6551:

An NFT with a "no token-bound account" scenario, when the holder receives airdropped tokens or POAP through participation in activities, these tokens and POAP will not be transferred when the NFT is sold.
In contrast, an NFT with a "token-bound account" scenario will transfer these tokens and POAP when the NFT is sold. The new buyer can see the complete transaction history related to this NFT.

Enhancing the Identity Value of NFTs with ERC-6551

ERC-6551 seems to record the on-chain identity history of NFTs, where each NFT has an indelible history that remains in the wallet address of the previous owner after being sold, allowing the events it has experienced to be passed on more completely. This form may give digital characters constructed by NFTs more identity value, and the related value it possesses can be transmitted more completely; collectors may also focus on it not only for its speculative value but also as their on-chain identity.