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Update ERC-5727: Improve descriptions
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AustinZhu committed Jan 30, 2024
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Expand Up @@ -21,20 +21,18 @@ This interface aims to provide a flexible and extensible framework for the devel

## Motivation

The Web3 ecosystem nowadays is largely dominated by highly-financialized tokens, which are designed to be freely transferable and interchangeable. However, there are many use cases in our society that require non-transferablity. For example, a membership card guarantees one's proprietary rights in a community, and such rights should not be transferable to others.

We have already seen many attempts to create such non-transferable tokens in the Ethereum community. However, they lack the flexibility to support both fungible and non-fungible tokens and do not provide extensible features for critical use cases.
The current Web3 ecosystem is heavily focused on financialized, transferable tokens. However, there's a growing need for non-transferable tokens to represent unique personal attributes and rights. Existing attempts within the Ethereum community to create such tokens lack the necessary flexibility and extensibility. Our interface addresses this gap, offering a versatile and comprehensive solution for SBTs.

Our interface can be used to represent non-transferable ownerships, and provides features for common use cases including but not limited to:

- granular lifecycle management of SBTs (e.g. minting, revocation, subscription and expiration)
- management of SBTs via community voting and delegation (e.g. DAO governance, operators)
- recovery of SBTs (e.g. account recovery and key rotation)
- fungible and non-fungible SBTs (e.g. membership cards and loyalty points)
- the grouping of SBTs using slots (e.g. complex reward schemes with a combination of vouchers, points, and badges)
- claimable SBTs (e.g. airdrops, giveaways, and referrals)
- Lifecycle Management: Robust tools for minting, revocation, and managing the subscription and expiration of SBTs.
- DAO Governance and Delegation: Empower community-driven decisions and operational delegation for SBT management.
- Account Recovery: Advanced mechanisms for account recovery and key rotation, ensuring security and continuity.
- Versatility in Tokens: Support for both fungible and non-fungible SBTs, catering to a wide range of use cases like membership cards and loyalty programs.
- Token Grouping: Innovative slot-based system for organizing SBTs, ideal for complex reward structures including vouchers, points, and badges.
- Claimable SBTs: Streamlined distribution of SBTs for airdrops, giveaways, and referral programs.

A common interface for soulbound tokens will not only help enrich the Web3 ecosystem but also facilitates the growth of a decentralized society.
This interface not only enriches the Web3 landscape but also paves the way for a more decentralized and personalized digital society.

## Specification

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