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feat: adding soulbound token #393

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feat: adding soulbound token
robert-zaremba Sep 14, 2022
7aa2f8b
set NEP number
robert-zaremba Nov 28, 2022
1783a3e
Renamed queries *by_owner to *for_owner
robert-zaremba Nov 28, 2022
515f35d
use proper doc comment syntax
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add copyright
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56397d0
adding optional sbt_token_for_owner
robert-zaremba Nov 28, 2022
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typos
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6c261e1
added consequences
robert-zaremba Nov 29, 2022
cb96e8d
fix: nep 181 -> 171
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c5c64c5
small note about events
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f29bfa2
review: update summary
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764c68e
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robert-zaremba Mar 23, 2023
0f26b31
Merge branch 'master' into robert/nep-sbt
robert-zaremba Mar 25, 2023
89aa83a
adding token kind
robert-zaremba Mar 25, 2023
13b152c
update documentation about soul_transfer, recover and revoke
robert-zaremba Mar 25, 2023
afab9e8
sbt registry
robert-zaremba Mar 25, 2023
e0d92fb
adding a mint flow
robert-zaremba Mar 25, 2023
664573f
adding mint event (non nep-171) + few cosmetic updates
robert-zaremba Mar 26, 2023
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Recovery within a SBT Registry
robert-zaremba Mar 26, 2023
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update nep-245 note
robert-zaremba Mar 27, 2023
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fix flow
robert-zaremba Mar 27, 2023
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registry mint authorization and update query functions
robert-zaremba Mar 27, 2023
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change sbt_mint to support minting many tokens at once
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31d3ea8
fix tags
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use token instead of token_id, update diagram
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review
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a8f4f49
add more info about Kill event and updated Considerations
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8acb192
add Burn event
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typos
robert-zaremba Mar 30, 2023
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typos
robert-zaremba Mar 31, 2023
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rename event: Kill -> Ban
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make kind optional in sbt_supply_by_owner query
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review
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rename KindId to ClassId
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formatting
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add missing memo type and update events
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adding is_banned to registry trait
robert-zaremba Apr 3, 2023
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update registry motivation
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move to nep-0393.md
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fix snippet
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fix typescript event type definitions
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Merge branch 'master' into robert/nep-sbt
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review, adding notes about possible burning mechanism
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remove sbt_soul_transfer from required interface, and document requir…
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udpated motiviation about registry
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One more comment to state that class_id > 0
robert-zaremba Jun 19, 2023
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adding more diagrams
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fix
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typo
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Update neps/nep-0393.md
robert-zaremba Jun 29, 2023
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remove 'poorly'
robert-zaremba Jun 29, 2023
7850125
improving the flows and spec
robert-zaremba Jun 30, 2023
64afc80
Merge remote-tracking branch 'near/master' into robert/nep-sbt
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0ec0dca
more notes about token ID and the available space
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add sbts method
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more docs about sbt_renew
robert-zaremba Sep 6, 2023
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Merge branch 'master' into robert/nep-sbt
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update metadata struct comments
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add sbt_update_token_references method and event to the standard
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fix: events: should use issuer rather than ctr as per reference imple…
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235 changes: 235 additions & 0 deletions specs/Standards/Sould Bound Token/README.md
Original file line number Diff line number Diff line change
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# NEP: Soulbound Token

---

NEP: 393
Title: Soulbound Token
Authors: Robert Zaremba <@robert-zaremba>, Noak Lindqvist <@KazanderDad>
DiscussionsTo:
Status: Draft
Type: Standards Track
Category: Contract
Created: 12-Sep-2022
Requires: --

---

## Summary

Soulbound Token (SBT) is a form of a NFT token which identifies an aspect of an account (_soul_). Transferability is limited only to a case of recoverability or transferring the whole _soul_ - that would mean transferring a soul (all SBTs) from one account to another, and killing the source account.

SBTs are well suited of carrying proof-of-attendance NFTs, proof-of-unique-human "stamps" and other similar credibility-carriers.

## Motivation

Recent Decentralized Society trend opens a new area of Web3 research to model various aspects of what characterizes humans. Economic and governance value is generated by humans and their relationship. Creating a strong primitive is necessary to model new innovative systems and decentralized societies. Examples include one-person-one-vote, fair airdrops & ICOs, universal basic income, non KYC identity systems, Human DAOs as well as methods for Sybil attack resistance.

We propose an SBT standard to model protocols described above.

_Verifiable Credentials_ (VC) could be seen as subset of SBT. However there is an important distinction: VC require set of claims and privacy protocols. It would make more sense to model VC with relation to W3 DID standard. SBT is different, it doesn't require a [resolver](https://www.w3.org/TR/did-core/#dfn-did-resolvers) nor [method](https://www.w3.org/TR/did-core/#dfn-did-methods) registry. For SBT, we need something more elastic than VC.

## Specification

Soulbound tokens need to be recoverable in case a user's private key is compromised (due to extortion, loss, etc). This becomes especially important for proof-of-human stamps and other NFTs that can only be issued once per user.

Two safeguards against misuse of recovery are contemplated. 1) Users cannot recover an SBT by themselves. The issuer, a DAO or a smart contract (eg: multisig) dedicated to manage the recovery should be assigned. 2) Whenever a recovery is triggered then the wallet from which the NFT was recovered gets blacklisted (indicator that the account identity is burned). Recovering one SBT triggers a blacklist that should apply for SBTs that share the same address.
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Soulbound tokens with expire date SHOULD have an option to be renewable. Examples include mandatory renewal with some frequency to check that the owner is still alive, or renew membership to a DAO that uses SBTs as membership gating.

### Smart contract interface

The Soulbound Token interface is a subset of NFT, hence the interface follows the [NEP-171](https://github.com/near/NEPs/blob/master/neps/nep-0171.md).

```rust
/// TokenMetadata defines attributes for each SBT token.
pub struct TokenMetadata {
pub title: Option<String>, // ex. "fist bump with Robert"
pub description: Option<String>, // free-form description
pub media: Option<String>, // URL to associated media, preferably to decentralized, content-addressed storage
pub media_hash: Option<Base64VecU8>, // Base64-encoded sha256 hash of content referenced by the `media` field. Required if `media` is included.
pub copies: Option<u64>, // number of copies of this set of metadata in existence when token was minted.
pub issued_at: Option<u64>, // When token was issued or minted, Unix epoch in milliseconds
pub expires_at: Option<u64>, // When token expires, Unix epoch in milliseconds
pub starts_at: Option<u64>, // When token starts being valid, Unix epoch in milliseconds
pub updated_at: Option<u64>, // When token was last updated, Unix epoch in milliseconds
pub extra: Option<String>, // anything extra the SBT wants to store on-chain. Can be stringified JSON.
pub reference: Option<String>, // URL to an off-chain JSON file with more info.
pub reference_hash: Option<Base64VecU8>, // Base64-encoded sha256 hash of JSON from reference field. Required if `reference` is included.
}


trait SBT {
/**********
* QUERIES
**********/

/// get the information about specific token ID
fn sbt(&self, token_id: TokenId) -> Option<Token>;
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may consider nft prefix where relevant to make the functions compatible with existing tools. eg : nft_tokens_for_owner instead of sbt_tokens_for_owner.

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Collision with the existing tooling will create more harm than help here as we already discussed in #359. The only way I can see that being resolved is by the NEP which will help to identify the supported extensions, read more in #129, #154, and #275.

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Actually, I was trying to refer to #351, which could be then used as a requirement for SBT NEP to unlock nft_ prefixes by saying that SBT = NEP-171 + NEP-330 + NEP-XXX (that just defines that nft_transfer is not available) - this way the tooling can reasonably handle the deviation from NEP-171 through introspection.

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I was bringing up interface registration already in 2020, then created #154 ;)

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If we reuse nft_ prefix then SBT is a subset of NFT, not an extension. Adding #330 makes sense. We need to discuss more if we want to be compatible with NFT standard, and carry over some of the shortcoming (like representing the token id as a U64 rather than u64 -- more about this in Considerations section)

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/// returns total amount of tokens minted by this contract
fn sbt_total_supply(&self) -> U64;

/// returns total supply of SBTs for a given owner
fn sbt_supply_for_owner(&self, account: AccountId);

/// Query for sbt tokens
fn sbt_tokens(&self, from_index: Option<U64>, limit: Option<u32>) -> Vec<Token>;
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/// Query sbt tokens by owner
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fn sbt_tokens_for_owner(
&self,
account: AccountId,
from_index: Option<U64>,
limit: Option<u32>,
) -> Vec<Token>;
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/// Optional. If the SBT implementaiton assures that one account can have maximum one SBT
/// the the following function should be implemented.
/// Returns Some(Token) if an `account` owns an SBT, otherwise returns None.
fn sbt_token_for_owner(&self, account: AccountId) -> Option<Token> {}

/**********
* TRANSACTIONS
**********/

/// creates a new, unique token and assigns it to the `receiver`.
#[payable]
fn sbt_mint(&mut self, metadata: TokenMetadata, receiver: AccountId);
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/// sbt_recover reassigns all tokens from the old owner to a new owner,
/// and registers `old_owner` to a burned addresses registry.
/// Must be called by operator.
/// Must provide 5 miliNEAR to cover registry storage cost. Operator should
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How do you know that all implementations of this will require 5 milliNEAR to cover storage?

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Good call, I will rephrase it.

/// put that cost to the requester (old_owner), eg by asking operation fee.
#[payable]
fn sbt_recover(&mut self, from: AccountId, to: AccountId);

/// sbt_renew will update the expire time of provided tokens.
/// `expires_at` is a unix timestamp (in seconds).
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Are sure that seconds is a good idea here? The NFT metadata standard mandates milliseconds and you can this here in lines 51-54. I propose to keep it consistent. I also suggest we use either milliseconds or nanoseconds, as these are provided as functions from near-sdk-rs. With NFTs, most of the old contracts just use nanoseconds instead of the standardized milliseconds, same will probably happen here. Esp. in case of nanoseconds U64 or U128 data type might be more appropriate.

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Milliseconds most probably were inherited from the JS environment, and nanoseconds are used in NEAR Protocol for timestamps as seconds precision was not enough and then given that u32 was not enough to hold even seconds precision for long enough, u64 was enough even to have nanoseconds precision.

Unfortunatelly, NFT NEP and near-contract-standards implementation are currently in disagreement:

expires_at: Option<String>, // ISO 8601 datetime when token expires

https://github.com/near/near-sdk-rs/blob/89f8c2d776c8d00feb45239fdb15725527f1894b/near-contract-standards/src/non_fungible_token/metadata.rs#L36

expires_at: number|null, // When token expires, Unix epoch in milliseconds

https://github.com/near/NEPs/blob/550e428cfffafaa28bd84f2e882504a8679d01b6/neps/nep-0177.md

There is clearly a need for a decision regarding time references.

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I prefer seconds, as the most natural, and good enough metric (unix timestamp measure, SI unit).
Personally, I think use of nano-seconds in NEAR is over-engineering.
However, if the ecosystem settled on milliseconds, then we can use milliseconds.

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Just 2 cents:

  • seconds precision is not enough given that NEAR can produce more than 1 block a second (see testnet)
  • to store milliseconds precision, we already need u64, and given that we now have enough bits, we may as well go with nanoseconds precision - this is why NEAR went with nanoseconds

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NEAR VM provides block_timestamp in nanoseconds, so it is usually a no-brainer to use that value to compare it.

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nanoseconds are not user friendly. I don't believe anyone things in terms of nanoseconds when defining expires_at. Most of the people will think in terms of days or hours for things related to human. Seconds are a good Unix standard. Milliseconds are default in JS.
Even if there are 100 blocks per second - the condition will be well defined. it's event the last transaction from the given block if using <= or the last transaction from the previous block if using < .
I don't believe anyone will like to go to nanosecond precision for things like SBT.expires_at. I other words, why anyone would put expires at: April 7 2023 11:23:56.751209857?
Also, worth to note that the block unit is a sequence number (1,2,3 ...).

With that, I think second (as more human friendly) or millisecond (as JS default) are definitely more appropriate. My preference is seconds. However, if there is broader adoption for milliseconds then let's use milliseconds.

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I don't have a strong opinion on seconds/milliseconds/nanosecond for the expiration timestamp. There are pros and cons to each of them. Just make sure you align the whole document on using one selected option as currently TokenMetadata states that it is milliseconds precision.

#[payable]
pub fn sbt_renew(&mut self, tokens: Vec<TokenId>, expires_at: u64, memo: Option<String>);
}
```

### Logs

```typescript
interface SbtEventLogData {
standard: "nepXXX";
version: "1.0.0";
event: "sbt_mint" | "sbt_recover" | "sbt_renew";
data: SbtMintLog[] | SbtRecoverLog[] | SbtRenew[];
}

// An event emitted when a new SBT is minted.
// Arguments
// * `owner`: "account.near"
// * `tokens`: ["1", "abc"]
// * `memo`: optional message
interface SbtMintLog {
owner: string;
tokens: string[];
memo?: string;
}

// An event emitted when existing SBTs are revoked and burned.
// Arguments
// * `owner`: "account.near"
// * `tokens`: ["1", "abc"]
// * `memo`: optional message
interface SbtRevokeLog {
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Is there any reasoning to call this revoke instead of burn?

Also, the SbtRevokeLog does not show up in SbtEventLogData and there is no sbt_revoke event name.

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I removed SbtRevoke and updated to use NEP-171 NftBurn instead and cleaned the interface. So we will have few "native" events, and 2 inherited from NEP-171 NftBurn. Note that we still need to discuss & agree the level of compatibility.

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With the new SBT Registry update, now we don't use NEP-171 events any more

owner: string;
tokens: string[];
memo?: string;
}

// An event emitted when a recovery process succeeded to reassign SBT.
// Arguments
// * `old_owner`: "old_account.near"
// * `new_owner`: "new_account.near"
// * `token_ids`: ["1", "abc"]
// * `memo`: optional message
interface SbtRecoverLog {
old_owner: string;
new_owner: string;
tokens: string[];
memo?: string;
}

// An event emitted when a existing tokens are renewed.
// Arguments
// * `tokens`: ["1", "abc"]
// * `memo`: optional message
interface SbtRenewLog {
tokens: uint64[];
memo?: string;
}
```

Whenever a recovery is made in a way that an existing SBT is burned, the `SbtRevokeLog` event must be emitted.

```typescript
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class SbtBurnedAccounts {
burn(account_id) {
this.burned_accounts[this.account_id][this.predecessor_id] = true;
}

// query
is_burned(account_id, sbt_token_contract): bool {
return this.burned_accounts[account_id][sbt_token_id];
}
}
```

### Recommended functions

Although the functions below are not part of the standard (depending on a use case, they may need different parameters), we recommend them as a part of implementation and we also provide them in the reference implementation.
These functions should emit appropriate events.

```typescript=

interface SBT {
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/// Function for recovery committee, which can be either
/// the issuer, DAO, or an operator smart contract, authorized for the
/// recovery process.
/// Emits `SbtRecoverLog` when the recover process succeeds.
/// Returns an error if the recovery process failed.
recover(token_id: uint64, old_address: string, new_address: string): error | undefined;

/// Function to revoke and burn SBT. Must emit `SbtRevokeLog` event.
/// Return true if a token_id is an valid, active SBT. Otherwise returns false.
revoke(token_id: uint64): bool;
}
```

## Reference Implementation

- https://github.com/alpha-fi/i-am-human/tree/master/contracts/soulbound

## Example Flow
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## Consequences

### Positive

- Template and set of guidelines for creating SBT tokens.
- Ability to create SBT aggregators.
- Ability to use SBT as a primitive to model non KYC identity, badges, certificates etc...
- SBT can be further used for "lego" protocols, like: Proof of Humanity (dicussed for NDC Governance), undercollateralized lending, role based authentication sytems, innovative economic and social applications...
- Stanarized recoverability mechanism.
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- SBT are considered as a basic primitive for Decentralized Societies.
- new way to implement Sybil attack resistance.

### Netural

- API follows the NEP-171 (NFT) standard.
NOTE: we can decide to use `nft_` prefix whenever possible.
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As others have pointed out, mixing these standards and making interfaces compatible is well-intentioned but doomed to cause problems. There are so many examples where NFT standards are poorly or improperly implemented, adding another standard with differing functionality but equal naming in there will cause lots of misclassifications between NFTs/SBTs, and then recover methods called on NFT contracts, SBTs attempted to be listed on NFT marketplaces and so on. Probably nothing will happen because of smart contract panics, but devs will have to put defensive measures into place that will impair interoperability efforts. Users will be annoyed and blame devs all over the place. Everyone will be unhappy.

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Good comment. On one hand side NEP-171 is desirable (support from existing tooling), on the other, it has some short commings. I've updated teh sentence and added more about it to the Considerations section.

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@robert-zaremba Existing tooling will inevitably need to have dedicated support for SBTs, and the role of the standards is to make the support hassle-free. Thus, as we already covered before, it is better to avoid any overlap with the NFT ecosystem to make everybody's lives easier.

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Actually, I still think that some developers may find it desirable to implement NFT query API on the issuer level. It is possible, so I would keep it mentioned. I will reword the sentence to make it more clear.


### Negative

- new set of events to be handled by the indexer. However this is not an issue if we decide to use subset of events used by the NEP-171 (NFT).
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Same reasoning as above. New events. Updating indexers is not as bad as tokens being misclassified.

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Agree. But it's negative from the indexer perspective: new support will have to be added.


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