NFT Primitives You Should Know About
Author: William M. Peaster
Bankless
Translated by: Lynn, Mars Finance
NFT is a basic building block in encryption technology, paving the way for new innovations and use cases. Well-known NFT primitives include Zora, ERC-6551, Boost, DN-404, Nouns, Liquid Delegates, and NFV, which can be used to create complex NFT experiences. DAO and Nouns Protocol allow developers to create new applications, Liquid Delegates increase the ability to trade rights, and NFV improves fund efficiency and flexibility. Flayer enhances the liquidity of non-floor NFTs through the collection pool and Huberg fees.
If DeFi is like “monetary Lego,” then NFT is like “cultural Lego.”
In other words, NFT primitives.
In cryptographic technology, primitives are basic building blocks that can be used to create more complex systems or applications.
NFT primitives are important because they pave the way for new innovations and use cases around NFTs, enabling developers to build more complex and multifunctional experiences.
To help you better understand the programmable possibilities here, let’s take a look at 8 examples of some of the most famous NFT primitives today.
1. Zora Protocol
Through Messari
When creators on Zora mint NFTs and choose the “free + reward” pricing option, they are eligible to receive protocol rewards by splitting the 0.000777 ETH Zora minting fee.
When new mints are created, these rewards accumulate in the custody contract and can be withdrawn by the creator at any time.
Developers or platforms that promote NFT creation or recommend collectors to mint NFTs will also receive rewards. This includes rewards for bringing creators to the platform and rewards for bringing collectors for minting.
Therefore, Zora Protocol Rewards introduces a basic reward mechanism that can be used to create new applications, such as an alternative Zora frontend for self-funding. It can also be easily integrated into existing NFT projects and platforms.
2. ERC-6551
By Benny Giang
ERC-6551 has fundamentally changed the NFT field by allowing NFTs to act as their smart contract accounts.
By allowing NFTs to own assets, interact with web3 applications, and act as on-chain identities, ERC-6551 significantly extends the basic properties of ERC-721 tokens. The composability of ERC-6551 means it can be combined with other protocols and applications to create new innovative NFT utilities.
For example, the AI-based simulation game “Parallel Colony” was initially inspired by ERC-6551, as the standard allows the game’s AI agents to act as wallets and manage their token assets.
3. Boost
By Boost
Boost is a distributed incentive protocol. It supports deploying incentives (i.e., tokens) to stimulate targeted on-chain actions, and recently, we have seen more and more deployment of Boost to drive participation in new NFT minting.
For example, you can set a reward so that the first 100 minters of the latest NFT drop each receive $2 in OP as a reward. However, how to set the parameters is entirely up to you.
Nevertheless, Boost’s open and composable design allows it to be easily integrated with other applications, making it an incentive lever for anyone who wants to leverage its functionality.
4. DN-404
By Setter
DN-404 is an optimized version of the ERC-404 experiment, which helps promote a new way to create hybrid tokens that can be used as both fungible (ERC-20) and non-fungible (ERC-721) tokens.
Therefore, DN-404 can be used for various applications, such as partial ownership of NFTs, increasing the liquidity of NFT projects, and creating new trading mechanisms that utilize both fungible and NFT properties.
5. Nouns Protocol
By Nouns
One of the most popular NFT primitives is the Nouns Protocol.
With this system, Nouns has created a model that integrates NFT continuous generation, auctions, and community governance. To date, this foundation has inspired and been modified by dozens of derivative projects, resulting in the “Nounish DAO” term.
The fully on-chain nature of the Nouns Protocol also means that developers can easily launch new applications around Nouns.
6. Liquid Delegates
By Delegates
Liquid Delegates, created by the Delegate team, introduces a novel mechanism that allows delegation rights to be wrapped into tradable NFTs.
By enabling NFT delegation rights, Liquid Delegates increase the ability to trade these rights, claim airdrops, access token-gated communities, and more, all without transferring ownership of the underlying assets.
Projects can use this feature for various purposes, but we often see it integrated so that people can safely mint or claim tokens from their vault wallets.
7. Non-Fungible Vault (NFV)
By Open Dollar
The Non-Fungible Vault (NFV) developed by Open Dollar binds mortgage debt positions (CDPs) to transferable NFTs instead of protocol accounts.
This primitive makes the ownership of stablecoin borrowing positions more liquid and transferable, increasing fund efficiency and flexibility.
In other words, NFV paves the way for the first secondary lending market in DeFi, and because they exist in the form of NFTs, they can be integrated into DeFi in new ways.
8. Liquid Listings
By Flayer
One of the newer NFT primitives is Flayer’s Liquid Listings, which allows rarer non-floor NFTs to be deposited into a collection pool in exchange for “floor tokens.”
These tokens (e.g., ƒMILADY) represent the floor price of the NFTs and can be sold to provide immediate liquidity, while the remaining value from the listing is realized in the final sale of the NFT.
It is worth noting that this primitive uses Huberg fees to ensure fair pricing, making it easier to sell non-floor NFTs and quickly obtain liquidity in a stable manner.
Tags
Bankless
DeFi
NFT
Tokens
Ethereum
Protocol
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Bankless 8 NFT Primitives You Should Know