- The Solv Protocol proposed the ERC-3525 proposal.
- The Ethereum community approved the ERC-3525 approval.
- This approval defines a clear structure for semi-fungible assets.
As the Ethereum merge nears, the ETH community is still working on making decisions to further improve the Ethereum blockchain. The latest of these improvements includes the approval of the ERC-3525 proposal.
In detail, the ERC-3525 was a proposal put forth by Solv Protocol. This approval was just approved by the Ethereum blockchain today. In particular, the ERC-3525 proposal will create a token standard.
Specifically, the token standard set by the ERC-3525 proposal is made to represent semi-fungible assets. To highlight, the proposal is designed to represent those semi-fungible assets which aren’t the most suited for financial instruments. These financial instruments include insurance policies, bonds, and vesting plans, to name a few.
Adding on, the EIP-3525 proposal defined a specification where EIP-721 compatible tokens with the same SLOT as different IDs are fungible. The proposal was written by Will Wang, Ethan Y. Tsai, Ryan Chow, Mike Meng, AlvisDu, and Zhongxin Wu.
According to the Fellowship of the Ethereum Magicians discussion forum, the proposal was highly discussed before it was presented. The authors say they wished to present and implement customized financial instruments.
By addressing and defining the semi-fungibility of tokens by the SLOP property, they can address other issues. For instance, when two tokens have the same SLOT, their values are fungible, so they can be added together like ERC-20 tokens are.
Thus, with the EIP-3525 defining and putting a structure into place, developers will no longer need to create a separate ERC-20 contract for each financial product. In addition, the value of the financial products can be altered at the standard level instead of being treated separately on an implementation level.
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