Remarks

We have mentioned the minimum bid price for credit offering may differ from the actual sale price for the offering, and in such cases will used the minimum bid price to set discount factors rather than using the actual sale price. Our current view is that any amount paid in excess of the minimum bid should pass-through as revenue to the creator / project.

One challenge relating to ERC-3525 to highlight is that many of the self-custodial wallets, such as Metamask, have not yet fully adopted ERC-3525; for instance one cannot carry out token-to-token transfer between two ERC-3525 tokens. It is hoped that as new applications leveraging the standard come online, wallets will fully support the new standard.

Earlier we considered that a lack of flexible token standards to be one of the factors that contribute to constrain adoption of credit issuance in Web3 marketplaces. It is our view that the introduction of ERC-3525 SFT standard and implementation framework we have outlined will encourage market participants to explore redeemable credit tokens.