<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: Programmable NFTs (pNFT) BREAKDOWN: /🧵
Summary: On Feb 6th, @metaplex will allow Solana NFT collections to migrate into a programmable asset class, pNFTs.
This new pNFT standard presents many opportunities and challenges for the Solana ecosystem⬇️
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<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: Royalty Enforcement:
Under the pNFT standard, project owners are able to decide how their NFTs are used via allow/deny lists.
For collections looking to enforce royalties, they can restrict holders from listing on zero-royalty marketplaces.
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<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: It's important to 📝: hard enforcement via allow/deny lists is protocol specific.
Meaning, OTC & wallet-to-wallet transfers are not restricted by default.
Instead, project owners must specifically create each rule. Making active management of allow/deny lists very important.
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<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: Royalty Implications:
What does this mean? Project owners have a choice to adopt new pNFT rules or not.
If they do: Less ownership rights for holders & lower collection volumes due to restrictions imposed.
If they don't: Business as usual w/ risk of running outdated standard.
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<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: Other pNFT Abilities:
Outside of royalty enforcement, Metaplex took community considerations into account that allows for other rule sets.
With pNFT framework, creators can lock/unlock tokens under certain conditions (location, usage, etc.) and impose other creative rules.
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<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: Other pNFT Implications:
Creative rules open a new world of possibilities for pNFTs.
Lock a pNFT after it's used to claim merch?✅ Limit holders by jurisdiction law?✅ Bind pNFTs in-game?✅
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<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: Project owners can customize rules, or even choose to adopt rules designed by other creators.
Ex: Metaplex will maintain a rule set to allow/deny marketplaces & protocols enforcing royalties - updated on a weekly basis.
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<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: Creators can follow others rules without needing to actively manage themselves (dangerous game?).
If projects choose to follow Metaplex's standard royalty enforcement rules, holders' ability to list their pNFTs on a certain platform will be controlled by a third-party.
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<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: Other pNFT Restrictions:
pNFTs will only be compatible with protocols, marketplaces, and wallets that choose to adopt the upgrade.
If a user wants to list/unlist a pNFT on a marketplace that hasn't upgraded, it will not work. The same applies with wallet transfers.
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<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: Disclaimer:
I am not a developer. The purpose of this thread is to breakdown pNFTs at a basic level so most can understand the coming changes.
If there are any technical gurus that would like to expand or provide further detail, we encourage you to do so😁🙏
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<aside> <img src="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" alt="https://pbs.twimg.com/profile_images/1600754727863697408/iO_0juuH_400x400.jpg" width="40px" /> Breakdown Report @TheBreakdownRep: Please share this thread with fellow SOL degens who may benefit or save for future reference.
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