DLT Token Standard (ERC-6960)
Enter ERC-6960. A token standard designed by our team at Polytrade to represent Real-World Assets (RWAs) and support fractional ownership.
The existing token standards lack the ability to support fractional ownership of both fungible and non-fungible tokens. While ERC-6150 is an extension of ERC-721 that standardizes an interface for the hierarchical representation of NFTs in a tree-like structure, its implementation is limited to NFTs only. This highlights the need for a more comprehensive standard that provides the same features as ERC-1155 but with added flexibility and support for hierarchical representation and fractional ownership.
If we take an invoice as an example, in a token-based economy, it can be tokenized and fractionalized for investors to own. By implementing the dual-layer token standard, a
mintfunction assigns an owner to a fraction worth a certain amount by taking the following values:
- wallet address of buyer or investor
- main Id of invoice
- sub Id of the invoice fraction
- amount of the invoice fraction
The standard can be implemented in many more cases and on many different kinds of real-world assets which reflects its flexibility and robust design.