Sologenic Implements a New Tool for NFT Projects to Track Provenance

November 15th, 2022 12:00 PM PST

Upon the launch of XLS-20, the Sologenic Marketplace has supported the migration of previously minted NFTs onto the new standard under a simple process available for both holders and creators. However, by allowing holders to trigger the swap, the original issuer address is not imprinted on the XLS-20, which is a disadvantage for projects that want to track holders for rewards, airdrops, and other capabilities.

In that sense, the Sologenic Team has decided to implement a new tool for the swap of holder-converted NFTs to creator-issued NFTs. To do so, Sologenic will hold a generated wallet per participating creator. This wallet will be funded with the necessary reserves and fees calculated according to the amount of NFTs the creator has issued.

The tool is in development and will only be available for NFTs that are not held by the creator. For creators that wish to swap the NFTs they created and hold in their wallets, the current migration tool will remain available.

Definitions for this document

Creator = Original Issuer of the NFT

Holder = Current Holder of the NFT

Minter = Sologenic Generated Wallet that Mints on Behalf of Creator

These will be the necessary steps to complete the process:

1. The Creator will opt-in to the Swap Tool. When opt-in-ing, Sologenic will generate a wallet specific to this Creator.
2. Sologenic will calculate the amount of XLS14 NFTs issued by the Creator that are not in their possession, and from this, calculate the amount of XRP needed for Reserves and TX fees needed as if ALL those NFTs are in the custody of the Minter.
   Calculation Example:
3. Creator issued 100 XLS14 NFTs.
4. Creator sold/transferred 50 of them
5. Creator opts-in for the Swap tool
6. Sologenic generates a wallet and finds out 50 NFTs are not in the Creator’s possession. Calculation for Reserves and fees
   Wallet Reserve = 10 XRP
   One Ledger Object = 2 XRP
   One TX fee = 0.01 XRP (Suggested high fee to avoid problems when submitting)
7. Note: NFTokenPage is a Ledger Object that holds up to 32 NFTs, so 2 XRP are needed per NFTokenPage, if we have 50 NFTs, then that’s 2 NFTokenPages; one with 32 NFT and another one with 18 NFTs
8. Objects needed for the Minter = Total 52 Objects = 104 XRP
9. NFTokenPage x 2
10. NFTokenOffer x 50

TXs needed for the full swap of all NFTs = Total 100 = 1 XRP

1. NFTokenMint (Minting NFT) x 50
2. NFTokenCreateOffer (0 value Offer to Holder, in order to claim) x 50

Total XRP needed for the Minter 115 XRP.

1. Creator will transfer the required XRP to the Minter by a TX prompted by UI
2. Creator will sign an AccountSet TX which adds the Minter address as the NFTokenMinter property that allows the Minter to mint NFTs on the Creator’s behalf, and only when this is done the Creator is considered enrolled in the Swap Tool.
3. Holders with XLS14 NFTs initially issued by the creator or Converted XLS20 NFTs will now see a button to Swap their NFT.
4. The Holder will destroy the current NFT through a TX prompted by the UI.
5. After successfully destroying the NFT, the TX hash will be submitted to Sologenic, which will validate the transaction.
6. Lastly, once the validation is completed, the Creator-issued NFT is minted and a 0 Value offer will be created with the Holder’s address as destination so the holder can claim it.
7. Creators will be able to opt-out of the Swap Tool at any moment, which will return all available/remaining XRP to their account. They can opt-in again by following the same process stated above.

About Sologenic

Sologenic is disrupting the asset trading industry by offering: Tokenized Securities, Crypto Assets and NFTs in a decentralized ecosystem. The Sologenic Development Foundation is formed by independent developers who maintain, build and expand the Sologenic ecosystem. More information can be found on www.sologenic.org

Contact

Favio Velarde

press@sologenic.org

Sologenic Implements a New Tool for NFT Projects to Track Provenance was originally published in Sologenic on Medium, where people are continuing the conversation by highlighting and responding to this story.