Sirwin
Sirwin

EIP 5643 and Subscription Based NFTs


Current NFTs work on a "pay once, receive value forever model" which means that once you purchase an NFT it can be used essentially forever with no additional cost. In many ways, this is good for consumers as their NFTs resist the wear and tear of physical products. For example, my Splinterlands cards that I purchased several years ago are in the same pristine, mint condition as the day I bought them, and if you were to purchase NFT music, you never have to worry about the sound quality degrading or the disc getting scratch marks. Best of all, once you are done with the NFT, you can sell it. While this may seem like a universal benefit, the indestructibility of current NFTs makes it incredibly difficult to offer subscription-based services via NFT. If I offer a streaming music NFT for $10, I must pay employees, rent servers, and pay utilities forever while only receiving that one-time $10 payment. In today's post, we are talking about EIP-5643 which proposes a new token standard that would allow the creation of NFTs with a definite expiration date as well as the ability to cancel or renew a subscription.

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The Part Time Economist
The Part Time Economist

Hi everyone. I'm just a simple man trying to make my way in the universe. I am passionate about cryptocurrency and hope that I can make at least some small contribution towards promoting wider crypto adoption and understanding.


The Part Time Economist
The Part Time Economist

Hi everyone. This is just a place for me to post some of my thoughts and analysis. I hope that someone finds them useful.

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