(4) Collections

Disclaimer: here

NFTs, wrapped tokens in their non-fungible form, are part of a collection.

Collections can be deployed permissionlessly. Each Collection has the following properties, set by the protocol message:

• Token (which token the collection belongs to)

• Unit (amount of tokens per NFT)

• Supply

• Inscription (must be spent on creation)

• Royalties (charged in base tokens on creation and/or destruction of NFTs)

• Lock configuration

• Reward configuration

There can be multiple collections per token, with no restriction on who can create them. This allows creators to deploy multiple collections for their tokens, communities to launch NFTs for their tokens, or to enable parts of communities to compete against each other.

Tokens have the potential to serve as a foundational commodity for communities that produce multiple collections, potentially influencing developments in art, tokenomics, and the social dynamics of community-driven projects.

Royalties

The protocol incorporates a royalty fee system. The royalty system allows creators to earn a predetermined, publicly disclosed percentage from wrapping and un-wrapping. These royalties go to the owner of the Collection inscription. More info on that later.

Staking Pools

Collections can be used to configure staking pools. Creators of a token will have the option to automatically distribute tokens to NFTs of pre-determined Collections. Those rewards can be claimed by unwrapping. More info on that later.