Erc-3690 Protocol
real world asset protocol with features to tokenize properties by fractions:
Last updated
real world asset protocol with features to tokenize properties by fractions:
Last updated
The dual layer token combines the functionalities of ERC-20, ERC-721 and ERC-1155 while adding a classification layer that uses (mainId) as the identifier for the main asset type and (subId) as the unique attributes or variations of the main asset.
Some key features:
Main ID represents the core asset category like real estate, art, etc.
Sub IDs are unique token variations linked to each main ID. For real estate this could denote property type, location, etc.
The protocol mints ERC-20 tokens for each sub ID, supporting fungibility per asset variation.
ERC-721 non-fungible tokens are issued for unique assets within each sub ID category.
ERC-1155 semi-fungible tokens can also be issued using sub IDs to encode specific property attributes.
Metadata stores relevant information about each main and sub ID token type.
This dual token architecture provides flexibility to represent both fungible and non-fungible assets and attributes within a unified protocol. The layered structure enables interoperability and discoverability across different asset categories and variations.
Each RWAs or each property is a different token and has a total supply limited to its scope, each unit of this same total supply is considered a supply dependent on the (mainid)
In this example, a property of 150 square meters could be divided into 1 or 10 square meters, thus creating 15 different sub tokens, which are compatible with the erc1155 protocol for trading and trading on web3 platforms.
Some key points:
Each real estate property or RWA is represented by a main ID token
The property is further split into fractional units (e.g. 1 sq meter chunks) defined as sub tokens
Each sub token has its own supply cap determined by the fractional division of the property
If a 150 m2 property is divided into 10 m2 chunks, there would be 15 total sub tokens issued
These ERC-1155 sub tokens are fully fungible with each other for trading purposes
The sub tokens derive their value from the underlying real estate asset represented by the main ID
This allows for fractional ownership and exchange of property shares through sub token trading on web3 platforms
The fixed sub token supplies enable fractional ownership while preventing oversupply of shares
So each property gets tokenized uniquely while enabling fractionalization and liquidity onchain.
The proposed token aims to offer greater granularity in token management, facilitating a well-organized token ecosystem and simplifying the process of tracking tokens within a contract.
This standard is particularly useful for tokenizing and enabling fractional ownership of Real-World Assets (RWAs). It also allows efficient and flexible management of both fungible and non-fungible assets.
The following are examples of assets which the DLT standard can represent fractional ownership of:
Invoices Company shares Digital collectibles Real estate
The ERC-1155 standard has seen considerable adoption within the Ethereum ecosystem. However, its design exhibits limitations when handling tokens with multiple classifications, particularly in relation to Real-World Assets (RWAs) and asset fractionation.
ERC20 🏠 (All houses are the same and interchangeable) Problem: ERC20 cannot represent a single property with different attributes
ERC721 (Each house is unique but not interchangeable) Problem: ERC721 cannot represent fractional ownership of a house.
ERC1155: (Houses are unique and their parts are interchangeable) Problem: ERC1155 can represent a single house and fractional ownership, but that requires creating 2 asset types within the same contract
DLT: Dual layer token: Solution: DLT tokens can represent a single house (Mainid) and a fractional ownership (Subid) efficiently using the same contract and allowing more versatility in the negotiations and trade of each asset.
