How To Retroactively Fund Contributors To The Ethereum Ecosystem

Introduce the EIP NFTs. These new NFTs can only be issued to authors who have submitted finalized Ethereum Improvement Plans. It is an opportunity to retroactively and not just recognize the contributions of developers and philosophers who make Ethereum what it is. What will these EIP NFTs be worth in the marketplace? That’s what the experiment is about.

Why This Crypto Billionaire Abandoned Ethereum| Why This Crypto Billionaire Abandoned Ethereum

Before we get into EIP NFTs, what’s an Ethereum Improvement Plan? According to the project’s documentation: 

“Ethereum Improvement Proposals (EIPs) are standards specifying potential new features or processes for Ethereum. EIPs contain technical specifications for the proposed changes and act as the “source of truth” for the community. Network upgrades and application standards for Ethereum are discussed and developed through the EIP process.”

A Retroactive Public Goods and The Results Oracle

EIP NFTs are not the only option. We also need to look at Retroactive Public goods. Vitalik Buterin is responsible for this, like everything else in Ethereum. “The core principle behind the concept of retroactive public goods funding is simple: it’s easier to agree on what was useful than what will be useful,” Vitalik explains in The article that posits the idea. This idea is further developed by the Optimism PBC organisation.

“So… what would happen if suddenly, exits did exist for public goods projects? A project’s impact on the public is more important than its quarterly profits. This would be the basis for determining exit. Were there more investments and innovations in technology to maximize community benefits? Would we see more nonprofits thriving rather than surviving?”

These rhetorical questions: How can you answer them? The article offers a solution, again in Vitalik’s own words.

“A DAO, which we can call “the Results Oracle”, funds public good projects. The protocol fees that can finance the results oracle over time (e.g. If sequencer auctions were used, they could be used as a funding source. But unlike other public goods funding DAOs, the Results Oracle funds projects retroactively, rewarding projects that it recognizes as having already provided value.”

ETHUSD price chart for 11/24/2021 - TradingView

 Source: ETH/USD on TradingView.com| Source: ETH/USD on TradingView.com

What then are The EIP NFTs?

AKA Labs took Retroactive Public Goods and simplified it. They developed a first implementation that doesn’t need to raise funds or to create a DAO. Let’s Please read the explanation..

“Acknowledging the fact that building a fully functional “results oracle” would be a large undertaking. The project tries to shed light on this space.

This experiment will be fun because it allows us to see how the market values each EIP NFT. We fully encourage EIP authors to mint their NFT/NFTs and participate in the experiment.”

To mint EIP NFTs “users must prove that they’ve authored/co-authored an EIP.” So far, Nine of them are currently in existence, but they haven’t produced any financial activity. Here is where Ethereum comes in. They are the ones who start the process of valuation. The NFTs will be valued by them, whether they make offers or finance retroactive recognition. Which proposals will get higher valuations? Are they all valued equally by the community?

Christie’s Will Auction Original Art From Gary Vee’s Veefriends NFT Collection| Christie’s Will Auction Original Art From Gary Vee‘s Veefriends NFT Collection

It’s worth noting that “each NFT that gets minted implements #ERC2981 which means that royalties will be paid in perpetuity to the minting address.” The minting goes through the EIP’s author address, AKA labs don’t get a cut. The project is a nonprofit, just like the projects they’re trying to help thrive. 

The EIP NFTs trial will it succeed or fail? That’s for the Ethereum community to decide.

Featured Image: Screenshot of the EIP NFTs Open Sea Page | Charts by TradingView

Get more Crypto News at CFX Magazine