DLT Token Standard (ERC-6960)
Last updated
Last updated
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 mint function 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.
