Chests - NFTs

Disclaimer: here

This document describes our current implementation/idea about the feature. Changes are likely, since we have to find consensus for a merge into the Runes codebase.

We think it would be great to use the enhanced liquidity that AMM swaps and liquidity bootstrapping could bring for Ordinals and to enable more experimentation with the tokenomics of Runes and Ordinals.

That's why we propose the implementation of so called Chests. A Chest is an Inscription that lives on a Sat that also holds a pre-determined amount of a specific Rune.

A Chest can be seen as "Semi-Fungible", because on the one hand it holds the fungible Rune and on the other hand the Inscription makes it non-fungible.

Creating a Chest

Creating a Chest requires wrapping at least the required amount of Runes into an Inscription and a certain protocol message. Meaning the UTXO needs to hold a sufficient amount of the respective Rune together with a delegation inscription.

Once locked in a Chest, the Runes lose their fungible properties until the Chest is destroyed, aka unwrapped. This means that Runes locked into a Chest:

• cannot be swapped

• cannot be transferred

But the Chest holding those Runes:

• can be traded on Ordinal marketplaces

• can be transferred like an Inscription (including the wrapped Runes)

This concept is called Hybrid NFT. Meaning when a user has at least one base unit amount of Runes and decides to wrap those with a specific inscription, they will receive a Chest.

Example: You hold 10,000 $WENL Runes and the WENL community launches a Syndicate (‘Collection’) called ‘WenLaunch Punks’. To get one Chest (aka NFT) of the Syndicate, you must wrap 10,000 $WENL with the inscription connected with the Syndicate. Depending on the configuration of the Syndicate, you can unwrap your $WENL anytime or after a time lock. Unwrapping will destroy your Chest.

Transferring a Chest

Transferring Chests works just like transferring Inscriptions because Chest and Inscription share the same sat.