Syndicates - Collections

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.

Chests, wrapped tokens in their non-fungible form, are part of a Syndicate (aka NFT collection).

Syndicates can be deployed permissionless. Each Syndicate has the following properties, set by the protocol message:

• Rune (which Rune the collection belongs to)

• Unit (amount of Runes per Chest)

• Supply

• Inscription (must be spent on creation)

• Royalties (charged in base tokens on creation and destruction of Chests)

• Lock configuration

• Reward configuration

There can be multiple Syndicates per Rune, with no restriction on who can create them. This allows creators to deploy multiple Syndicates for their Runes, communities to launch NFTs for their Runes, or to enable parts of communities to compete against each other.

It is easy to imagine that a Rune could become the base commodity for a community that creates numerous collections, driving innovation in art, tokenomics, and the social aspects of community-driven collections.

Royalties

The protocol incorporates a royalty fee system. The royalty system allows creators to earn a predetermined percentage from chesting and unchesting. These royalties go to the owner of the Syndicate inscription.

Staking Pools

Syndicates can be used to configure staking pools. Creators of a Rune will have the option to automatically distribute Runes to Chests of pre-determined Syndicates. Those rewards can be claimed by unwrapping.