What traditional NFT marketplaces lack in innovation, Seabug brings in handfuls. The relationship of a platform to an NFT is inherently abusive, embedding fees inside an NFT forever, or worse yet, locking them inside a walled garden.
Our Self-Governed protocol will bring NFTs into a new age of DAO-controlled future where each marketplace does not hold an iron grip on the market but rather is a participant in it themselves. Our marketplace is no different. It will be a window into this protocol, a Cardano-wide marketplace where everyone stands on equal grounds.
With our V1 launch quickly approaching, we are eager to describe how our protocol, we believe, will make NFT ownership on Cardano a unique and truly superior experience in comparison to other blockchains. Expanding upon our previous article, the Seabug protocol carries within itself several key properties:
- Non-custodial NFT staking
- Builtin functionality for bootstrapping a DAO — NFTs that can’t be stolen and royalty payments that can’t be gamed
- The potential to support expressive derivatives 🤠
- Ownership preserving Hydra Head auction support
The Self-Governed NFT, a Cardano-exclusive innovation is, in essence, a derivative backed by the underlying CNFT. It remembers who owns the NFT regardless of which Address it is currently located — making it impossible to steal it. Which, as we see time and time again on OpenSea, is a property worth caring about.
To bring a CNFT into the protocol, you must stake it and in return receive the Self-Governed NFT derivative. By doing so you enter the protocol, under agreed-upon parameters. Usually, the party that provides the staking rewards, decides the parameters. In doing so, they point the royalty rewards towards their own script and at the artist’s address. They set the royalty rates and in tandem with the NFT owners strike an agreement backed by an on-chain vote they perform.
We aim to roll features out over time as we prepare the required code and ensure that the ecosystem is ready to interface with our proposed additions to the Metadata Standard (CIP coming) in order to ensure a smooth user experience. For a more detailed explanation, please see the technical whitepaper we are releasing alongside this article.