Support ERC20s (and stable coins) in Proof of Creativity

Proposals
1

Support ERC20s (and stable coins) in Proof of Creativity

Hello Story community,

This is Raúl, Head of Security at Piplabs, proposing to support selected ERC20 Story’s Proof of Creativity protocol.

Currently, PoC has the following potential monetary flows:

  • Royalty payment

  • License Token purchases (feeds into royalties)

  • Protocol royalty fees (currently at 0%)

  • Protocol IP registration fees (currently at 0)

All of them only supports the network’s native token, $IP.

While this is in theory good for UX and $IP adoption, it could be hindering the growth of Royalty Module and License sales.

  • Volatile license pricing in $ terms might not be attractive for web2 IP holders, creators, etc.

  • Volatile royalty payments means uncertainty when paying them, and when users claim remaining royalties.

  • Harder UX and friction for payment with fiat onramps.

  • Less incentives for eco projects to use our systems if they expected to pay revenue using their tokens.

On the other hand, completely opening PoC to any ERC20 may expose users to malicious ERC20s (drainers) and very low cap tokens that could rug and scam users.

To address this, I propose

  1. Introduce ProtocolTokenWhitelist contract a contract that would allow governance to add new tokens to the whitelist.

  • When a new token is added:

    • Users can set new licensing terms for new licenses priced in that token.

    • Royalty module accepts payments in all whitelisted tokens.

    • Protocol could set registration fees in all whitelisted tokens.

  • When a token is removed:

    • New licenses can’t be priced in that token.

    • Royalties can’t be payed on that token anymore. Claims are always possible

    • Protocol stops accepting registration fees in that token

  1. Modify PoC contracts to enable the above behaviors.

Concrete technical proposals would be made after gathering community feedback.

  1. Introduce a Protocol Token Risk Framework

Similarly to how AAVE evaluates new collateral, Story DAO should have a streamlined process to evaluate new tokens.

At some point, an independent Risk Analyst entity giving service to the DAO should profile the token in question. Initially, a combination of community sentiment check, Security Council analysis and token voting would be enough to kickstart the feature.

Proposed Process

Leveraging the SIP process structure:

  1. Temperature check forum post with proposal, must provide token info:

    1. Token name and ticker.

    2. Contract Address.

    3. Link to verified contract code in Storyscan and repos.

    4. Link to Coinmarketcap, Coingecko, or similar platforms

    5. Motivation.

    6. Audit(s) by a reputable independent entity or researchers.

    7. Is it a bridged asset?

      1. Bridge technology:

    8. Is it upgradeable?

    9. Trading pairs, liquidity (in DEX and/or CEX)

  2. Security council and community express opinions, evaluating:

  • Token issuer reputation and longevity.
  • Regulatory risk.
  • Smart contract risk.
  • Liquidity in DEX and CEX in Story.
  • Liquidity in DEX and CEX Cross chain.
  • Integrations in DeFi/IPFi protocols.
  • Tokenomics.
  1. Write SIP draft when a sponsor is found.
  2. Token Voting
  3. Whitelisting
  4. Communication.

Please share your thoughts!

3 Likes