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NFA

Typeof: Coordinator

NFAs are Bonded Non-Fungible Tokens. (In Current industrial parlance: Bridge, Wrapper. Bond.)

In established traditional finance “Bonds” are units of debt issued by companies and securitized as tradable assets. In the DCM the “debt” is one or more State Changes, the “company” that issues it is the User who triggered those State Changes and the securitization is the State Changes a User bundles together as an NFA - a tradable asset.

NFAs are bounded units of exclusive utility. They represent one or more single units of proprietorship, each of which originally was issued by the authors of the State Changes it includes.

Therefore an NFA references a collection of State Changes directly, or indirectly through other NFAs in a cascading hierarchy. A State Change can only be included within one NFA at a time. As such, NFAs can be considered Bonded NFTs, which can’t be replaced with other tokenized assets of the same type because each token represents a unique unit of value.

Ownership is established through the Governance of the NFA (which is embedded in the NFA Object), and royalties owed in a Dispersal Event are recorded within its Attribution.

NFAs may be destroyed through an act of its Governorship, which releases the State Changes and makes them available to be used in further NFA Minting Events.

When a State Change or group of State Changes occurs, the author of those State Changes may choose to wrap them into the NFA. If a Contract was in place before hand which enabled those state changes, that Contract will be reflected within the Attribution and Governance for that NFA.

So, e.g., an Investor may pay in full or partially up-front to work to be done. The future Attribution and Governance rights that is owed to both the Investor and Author will be recorded in the NFA. This allows an Investor to pay in full for an NFA to be produced, or to leverage their investment by sharing the Attribution with the author thereby paying a lower up-front cost. The NFA then captures and tokenizes this investment, sweat investment and payments as a bonded tradeable asset.

Once minted, an NFA accepts all Dispersal Events that would otherwise have gone to any of the included State Changes, and employs its Attribution to Disperse these further. It may also hold value in and of itself, outside of Dispersal Events. E.g. a Trace may change ownership in a trade with another User, in its entirety, through change of Governance.

The NFA Minting Process locks the list of State Changes that that NFA includes. I.e. The NFA Governance can’t subsequently add or remove State Changes. However, the Governance may destroy the NFA, releasing the State Changes to be used in other NFAs. Note that an attempt to destroy an NFA will need to be ratified through the Governance of that NFA.

Tokenization through NFAs allows for:

  1. Liquidity – By tokenizing effort, real-world assets, reputation and any impact recorded on-chain, issuers can secure liquidity.
  2. Fractional Ownership – Fractional ownership arises from alterations to the Governance of the NFA. This allows any number of Users to be recorded, in any fraction allowed by the GovernanceAlgos in force, for that NFA.
  3. Fractional Royalty Rights - Royalty rights are dictated through the Attribution Table of the NFA. Therefore they can be cut into any shape through Attribution Algos, and the resulting Disperal can go to any other Coordinator Object. This gives total freedom in defining how to divide the benefit arisings from Dispersal Events that reach the NFA.
  4. Faster, cheaper, and dustless transactions – The DCM Gen 4 blockchain enable fast and low-cost transactions, and this relates to the tokenized assets as well.
  5. Transparency – Fully Leveraging Blockchain’s unique attributes, including immutability and transparency.
  6. Convenience – blockchain makes process more convenient and accessible

An NFA is the smallest possible tracking of Contribution available. It is an Object that represents events and therefore can be correlated with the effort behind Contribution.

The creation of NFAs is the Dreamcatcher’s reason for existing. NFAs are what people buy and sell when they want to commission work to be done, or purchase work done by others. This is the ownership marker [r]of contribution.

For example, a Contract between two Users may be for the creation of code, with the Acceptance being denoted by a Pull Request[s][t] of that code into the main branch of that Project. The event of the Pull Request automatically generates an NFA.

An NFA can be assigned to someone else by enacting a trade. An NFA is most likely a security in many scenarios, if it is sold to others for money. NFAs are where royalties are paid during an Ambient Attribution Dispersal Event. NFAs may be subject to speculation, and so we will require value appraisal tooling or the use of Arbitration in place to dampen some of that.

By simply doing work that is recorded ambiently within the Dreamcatcher, NFAs are created in their native indirect form. Until the event that explicitly creates an NFA, work done can nevertheless be derived from records provided no other NFA was created to already bundle up the contributions being referenced.
Non native NFAs can be created to refer to externally tracked work. For example a Trace can be created for all of Linus’ commits on the kernel in 1991. This NFA cannot be finalized until Linus himself joins the DCM, provides Evidence of identity to back the claim, and claims the NFA. However, unclaimed Non-Native NFAs can still be paid in to by others.

Multiple NFAs combined together can still be referred to as a NFA.

In Blockchain parlance NFAs are akin to NFTs but are a blockchain themselves, rather than a part of a larger blockchain. They are also much smaller than current NFTs permit, being in the micro scale by comparison.

The sale of a NFA triggers an attribution dispersal event for all those NFAs that contributed to the construction and sale of that NFAs.