ERC-721R, a new standard against fraudulent NFT projects2 min read
The ERC-721R, the new standard for the NFT, was officially launched on April 11. Adds an important repurchase feature for smart contracts.
ERC-721R, a new standard for greater buyer protection
ERC-721R storage on page GitHub contains details of a new standard that has been developed based on many community proposals calling for greater accountability of NFT creators.
Today’s marketplaces have suffered from the presence of fraudulent projects or projects with mechanisms that do not reach the level of the ecosystem of these products, leading to tensions with severe economic damage, but above all to a loss of credibility for those seeking to grow the sector.
The money back guarantee guaranteed by this new standard offers greater protection for buyers and greater legitimacy for creators as you can read on official website thus protecting both sides and poses a new starting point for this market .
How does it work?
When the NFT is minted with this standard, the funds are held in an account bound by a smart contract.
The creators cannot withdraw these funds until the end of the waiting period It allows buyers to return their NFTs and get refunds from prepaid smart contracts. The basic logic is very similar to the third-party escrow service. Buyers will be able to request a refund before the end of the waiting period, losing only the fees incurred for transaction costs.
The benefits for buyers are therefore numerous:
- Low risk purchase (in the worst case, money is recovered minus transaction fees)
- Rug-pull protection
- Increased responsibility on the part of the creators
Benefits for creators
As far as sellers are concerned, this allows them to build confidence in the market. In fact, potential buyers who prefer the ERC-721R standard will be more inclined to buy. It should also be noted that new dynamics are being created. The minimum price of the collection is unlikely to fall below the price of the mintage, especially when redemptions are still open .
The repayment period and other features of the NFT can be chosen independently by the various projects that decide to adopt this new standard. This will open new business scenarios leading to market-driven improvements and which already counts several projects that adopted the new standard after its debut.