[DAO: QmTNkVS] Representing third-party NFTs as wearables in Decentraland

by 0x9982b469910c2ee2ea566dcfcc250cdd34056397 (MrEric)

Summary

A proposed implementation for the submission, approval, and in-world representation of third-party NFTs as wearables.

Abstract

One ideal of metaverses is interoperability. Web3 has given people more agency over their digital identities and the assets they own, but as more people purchase art from NFT projects like BAYC and CCC, there is an increasing desire to bring these assets into other corners of the metaverse. In short, people want the ability to don their NFTs as wearables when strolling through Decentraland.

The following solution would require third-parties (i.e. original creators of an NFT project) to apply to the DAO to be “registered” within Decentraland. Approved third parties would be added to a Third Party Registry (TPR): a smart contract deployed to Polygon.

Third-parties would then be able to upload the 3D assets needed to represent their NFTs in Decentraland. Items should still be vetted by the Wearables Curtation Committee. All approved items would then be logged in the TPR with a unique identifier (URN).

This solution requires some work from the third parties. Each would have to build a “resolver” mapping their NFTs to the corresponding items in the TPR. This resolver would need to expose a standardized API endpoint that a Decentraland client could call whenever a player opens their backpack.

The mapping between NFTs and item URNs is up to the third party. For example, since the resolver is built by the third party, the response to the Decentraland client could be customized to return one URN for an NFT, or one URN for multiple NFTs.

These third-party representations of “source” NFTs would be different from current Decentraland wearables:

  • The publication fees should vary depending on the size of the collection.
  • It would be impossible for these representations to be exchanged (in either a primary or secondary sale) in any marketplace independently from the source NFT. These new items are only 3D representations of the source NFT, and do not have their own corresponding token that can be traded.

Specification

First, some quick definitions:

Third Party

The original creator of the external NFT.

Source NFT

A specific NFT within a collection of external NFTs made by a third party. For example: CryptoKitties, Apes from BAYC, etc.

Item

The asset, or in-world representation, for a source NFT. These are identified in the TPR by a unique identifier (URN).

Collection

A collection of items that all belong to the same theme of NFTs. (e.g. apes from BAYC)

Item Slot

One of a limited number of potential representations that Third Parties may use. Item slots are bought in tiers for MANA.

Third Party Registry (TPR)

The smart contract deployed to Polygon that stores the list of approved third parties and the items that represent their NFTs.

Third Party Resolver

An API built by a third party that allows clients to verify which source NFTs are owned by the player and which item representations correspond with those NFTs that can be rendered in-world.

Process overview

Application phase

Third-party NFT projects propose the addition of a collection to the Decentraland DAO. These DAO proposals should have their own category within the governance dApp, and they should have a minimum threshold of 1M VP voting in favor (similar to grants) needed to pass.

A voting period

DAO members should be able to vote on whether or not to include the new third-party collection. The voting period should last 1 week, like other proposal categories.

Collection registration

Approved collections are added to the TPR deployed to Polygon. This is done by the DAO Committee.

Collection management

After a collection is approved by the DAO and registered in the TPR, the third-party may add, edit, and manage items within the collection. All of this management will be done via a new UI exposed in the Builder available to approved third parties.

Purchasing item slots

Part of the collection management stage is the process of buying item slots for a collection. These slots can be purchased in batches in exchange for MANA.

The size of the batches and price function should be determined in a separate proposal.

Item approval

Like all wearables, items must be reviewed and approved by the Wearables Curation Committee. Items must be “locked” by the third-party before they can be approved by the curation committee. As collections of third party NFTs might include thousands of items, members of the curators committee should be permitted to sample specific items before approving items in batches. It would be unrealistic to review items individually.

Item registration

All items are uploaded and edited by third party managers (addresses given “manager” permissions in the Builder) before they are added to the TPR. Items added to the TPR are then reviewed by the Wearables Curation Committee.

Deployment

Wearable models and textures are uploaded to the catalyst network after ensuring each URN has been added to the TPR. This results in an address check either via a subgraph or a check to the TPR contract itself.

Resolution

Third parties are responsible for developing their own API endpoint mapping their NFTs to the item URNs in the TPR. This endpoint’s shape should follow a predefined standard to avoid one-off integrations. Furthermore, the logic behind this endpoint and any interaction with other smart contracts would be outside the scope of Decentraland’s involvement. Full legal responsibility lies with the third party to ensure that they only interact with smart contracts whose IP they’re permitted to use.

For a visual overview of the collection creation, approval, deployment, and resolution flow see this diagram.

Additional comments

  • While this implementation could support any form of asset, the first use-case is wearables for avatars based on PFP NFTs.
  • The goal isn’t to make external NFTs compatible with Decentraland, but to create new representations within Decentraland that are linked with external NFTs.
  • The Curation Committee is responsible only for approving items submitted by third parties. The DAO would approve the addition of new third parties.
  • The Curation Committee always has the ability to reject specific items, all items within a collection, and all items from a Third Party creator should the resolver provide incorrect data, or no data at all, to the client
  • Items won’t exist inside traditional wearable collections, won’t have rarity, and cannot be sold in primary or secondary sales. They are only in-world representations mapped to external NFTs by the TPR.

Should the suggested implementation for wearable representations of third party NFTs be developed by the Foundation?

  • Yes
  • No
  • Invalid question/options

Vote on this proposal on the Decentraland DAO

View this proposal on Snapshot