Curation Tokens
Last updated
Last updated
RARA, the Social Curation Protocol for NFTs. © 2020-2023 RARA Social Inc.
Curation Tokens are a way for users to speculate on the virality of a Taker NFT and are minted to the spender of a Reaction in response to that user curating in the protocol. When a reaction is spent/burned, the associated Curator Liability associated with that reaction is used to buy ERC-155 compliant Curation Tokens for the target Taker NFT. The purchased Curation Tokens are then split between the Spender and the Taker who owns the NFT.
Each Taker NFT has a unique bonding curve that tokens can be bought and sold into. The only way to buy a Curation Share is to spend a reaction on that Taker NFT. Once purchased, Curation Shares can be transferred to other addresses or sold back into the bonding curve.
The bonding curve for Curation Tokens is shaped as a sigmoid curve. Token supply starts at 0 and early investors get a low price. Once other investors start buying in, the price starts to rise. Once a large number of tokens have been issued, the growth in the price levels off. There is high risk to reward in the beginning and low risk to reward at the end.
The curve for technology adoption matches a sigmoid curve where early adopters slowly buy into new technology, it gains some traction and goes vertical, and then levels off once the majority of users have joined in.
Users curating NFTs will have to determine when to sell their accumulated Curation Shares for a specific NFT. If they think the NFT will gain more traction and have more reactions spent against it, they are incentivized to hold on to the tokens as they will appreciate in value. If they think the NFT has reached its peak in virality and no more reactions will be spent against it, then they should sell. This individual decision among many players allows the protocol to show aggregate sentiment towards NFTs and which NFTs are gaining traction and which NFTs are lagging behind.
On each Reaction Spend, the Taker is allocated a percentage of the Curation Tokens bought from the bonding curve. To accumulate these rewards, the Taker does not need to interact with the protocol. Only when they would like to claim the rewards would they need to prove ownership of the Taker NFT to the protocol. These unclaimed Curation Tokens will be held in the ReactionVault Contract until they are claimed by the NFT owner.
To claim the Curation Token rewards accumulated to a Taker NFT, the current owner of the NFT must prove ownership of the NFT before they can claim rewards. To do this, the owner must register the NFT into the protocol. This is the same process as registering an NFT in the protocol in order to sell Reactions. Likewise, the owner can specify a percentage of any rewards that should go to the creator of the NFT in order to support royalty schemes between the current owner and the original creator or artist.
Once the NFT is registered in the protocol, the Taker can claim the rewards by calling “withdrawTakerRewards()” in the ReactionVault Contract. This logic will then sell any accumulated Curation Tokens. If the Taker specified a Creator to split rewards with during the registration process, the percentage will be set aside for the creator, and the remaining amount of payment tokens from the Curation Token sale will be sent to the Taker.
When calling the function to claim Taker Rewards, the calling account must be the same account that registered the NFT in the protocol.
Both the active Payment Token in the protocol and the default Curator Vault addresses can be looked up in the ParameterManager contract on chain.
The curatorTokenId is the ERC-1155 token ID that is being sold.
The tokensToBurn is simply the amount that the owner is requesting to be claimed and sold and then all proceeds will be sent to the refundToAddress.
Since the RARA protocol lives on more than one blockchain and can use NFTs on both Ethereum Mainnet and Polygon, it does not actively look up NFT owner addresses during day to day interactions. Instead, when the NFT is registered, it stores and caches the current owners address in the MakerRegistrar.sol contract on Polygon. This address is then used for allocating rewards. This means that when you sell or transfer your registered NFT, the protocol does not automatically know this has happened.
If you move your NFT to a new address, simply re-register the NFT with the new account and the new owner address will be updated.
If you currently have accumulated Rewards, claim them before selling or transferring the NFT as the new owner could come claim ownership and withdraw the previously accumulated rewards.
If you acquire an NFT that was previously registered under a different owner, re-register the NFT so that only you can claim any new rewards that are generated.
