erc-7891-update

Author: nitin312

ERCS/erc-7891.md

@@ -1,29 +1,29 @@
 ---
 eip: 7891
 title: Splitting and Merging of NFTs
-Description: Hierarchical NFTs with Splitting and Merging
+description: Hierarchical NFTs with Splitting and Merging
 author(s): Nitin Bhagat <[email protected]>, JongWook Bae <[email protected]>, Su-Hyun Lee <[email protected]>
 discussions-to: https://ethereum-magicians.org/t/eip-6312-hierarchical-nfts-with-splitting-and-merging/22986
-status:	Draft
-type: Standard Track
+status: Draft
+type: Standards Track
 category: ERC
-created: 2025-2-15
+created: 2025-02-15
 requires: 721, 6150
 ---
 
 ## Abstract
 
-This standard extends [ERC-721](./ERC-721.md) and [ERC-6150](./ERC-6150.md). This introduces a structured parent-child relationship between NFTs, allowing an NFT to be fractionally split into multiple child NFTs and merged back into a single entity. It provides interfaces to retrieve an NFT’s parent, children, and hierarchical status, ensuring flexible ownership management. This standard is particularly useful for applications in fractional ownership, asset distribution, and composable digital assets, opening new possibilities in fields like real estate, gaming, and decentralized finance.
+This standard extends [ERC-721](./erc-721.md) and [ERC-6150](./erc-6150.md). This introduces a structured parent-child relationship between NFTs, allowing an NFT to be fractionally split into multiple child NFTs and merged back into a single entity. It provides interfaces to retrieve an NFT’s parent, children, and hierarchical status, ensuring flexible ownership management. This standard is particularly useful for applications in fractional ownership, asset distribution, and composable digital assets, opening new possibilities in fields like real estate, gaming, and decentralized finance.
 
 ## Motivation
 
-ERC-6312 introduces hierarchical NFTs with splitting and merging capabilities, allowing assets to be dynamically restructured. This proposal is crucial for fractional ownership, gaming assets, and financial instruments, where assets need to be split or merged. 
+This eip introduces hierarchical NFTs with splitting and merging capabilities, allowing assets to be dynamically restructured. This proposal is crucial for fractional ownership, gaming assets, and financial instruments, where assets need to be split or merged. 
 
-1. **Splitting**: One of the key limitations of ERC-6150 is its rigid hierarchy, where NFTs are permanently assigned to a parent without the ability to restructure ownership. In many real-world scenarios, assets need to be split into smaller, independent units. ERC-6312 introduces a standardized way to split an NFT into multiple child NFTs, enabling dynamic asset management. For example, in financial markets, a share NFT can be split into multiple fractional share NFTs, allowing investors to own and trade smaller portions of a share.
+1. **Splitting**: One of the key limitations of [ERC-6150](./erc-6150.md) is its rigid hierarchy, where NFTs are permanently assigned to a parent without the ability to restructure ownership. In many real-world scenarios, assets need to be split into smaller, independent units. This eip introduces a standardized way to split an NFT into multiple child NFTs, enabling dynamic asset management. For example, in financial markets, a share NFT can be split into multiple fractional share NFTs, allowing investors to own and trade smaller portions of a share.
 
-2. **Merging**: Just as assets need to be split, there are scenarios where multiple NFTs should be combined into a single entity. ERC-6312 enables a merging mechanism, allowing child NFTs to be consolidated into a single parent NFT, allowing asset management and transactions. For instance, in finance, fractional share NFTs can be merged back into a full share NFT, enabling seamless ownership consolidation. This is particularly useful for investors who gradually accumulate fractions of a stock and later want to own a full share.
+2. **Merging**: Just as assets need to be split, there are scenarios where multiple NFTs should be combined into a single entity. The proposed eip enables a merging mechanism, allowing child NFTs to be consolidated into a single parent NFT, allowing asset management and transactions. For instance, in finance, fractional share NFTs can be merged back into a full share NFT, enabling seamless ownership consolidation. This is particularly useful for investors who gradually accumulate fractions of a stock and later want to own a full share.
 
-3. **Share Distribution**: ERC-6312 introduces ownership share management, allowing NFTs to track and distribute fractional ownership among multiple stakeholders. This solves fractional ownership tracking within parent-child NFT structures. This also allows dynamic adjustments of ownership based on splitting and merging actions. For example, a real estate NFT representing a building can have multiple owners with different share percentages. When the NFT is split, the new NFTs retain a proportion of the original ownership share. When merged, the system redistributes the shares accordingly. This Enables multi-party ownership in digital assets.
+3. **Share Distribution**: This eip introduces ownership share management, allowing NFTs to track and distribute fractional ownership among multiple stakeholders. This solves fractional ownership tracking within parent-child NFT structures. This also allows dynamic adjustments of ownership based on splitting and merging actions. For example, a real estate NFT representing a building can have multiple owners with different share percentages. When the NFT is split, the new NFTs retain a proportion of the original ownership share. When merged, the system redistributes the shares accordingly. This Enables multi-party ownership in digital assets.
 
 ## Specification
 
@@ -35,10 +35,10 @@ The key words "MUST", "MUST NOT", "REQUIRED", "SHALL", "SHALL NOT", "SHOULD", "S
 // SPDX-License-Identifier: MIT
 pragma solidity ^0.8.0;
 /**
- * @title ERC-6312: Hierarchical NFTs with Splitting, Merging, and Share Management
+ * @title ERC-7891: Hierarchical NFTs with Splitting, Merging, and Share Management
  * @dev This interface extends ERC-6150 for hierarchical NFTs with share-based ownership management.
  */
-interface IERC6312 /* is IERC6150, IERC721 */ {
+interface IERC7891 /* is IERC6150, IERC721 */ {
 
 /**
      * @dev Mints a new parent NFT.
@@ -73,10 +73,10 @@ interface IERC6312 /* is IERC6150, IERC721 */ {
 }
 ```
 
-Optional Extensions: ERC6312 Burnable
+Optional Extensions: ERC-7891 Burnable
 
 ```solidity
-interface IERC6312Burnable is IERC6312 {
+interface IERC6312Burnable is IERC7891 {
     /**
      * @dev Burns an NFT and transfers its share back to the parent NFT.
      */
@@ -86,9 +86,9 @@ interface IERC6312Burnable is IERC6312 {
 
 ## Rationale
 
-### How ERC-6312 Improves Over Existing Standards
+### How ERC-7891 Improves Over Existing Standards
 
-| Feature                  | ERC-721 | ERC-1155 | ERC-6150 | ERC-6312 (Proposed) |
+| Feature                  | ERC-721 | ERC-1155 | ERC-6150 | ERC-7891 (Proposed) |
 |--------------------------|---------|---------|---------|------------------|
 | Unique NFTs              | ✅      | ❌       | ✅       | ✅                |
 | Fungible & Non-Fungible  | ❌       | ✅       | ❌       | ✅                |
@@ -100,9 +100,13 @@ interface IERC6312Burnable is IERC6312 {
 | Ownership Redistribution | ❌       | ❌       | ❌       | ✅                |
 
 
+## Backwards Compatibility
+
+The proposed ERC-7891 extends [ERC-721](./erc-721.md) and [ERC-6150](./erc-6150.md), making it backward compatible.
+
 ## Reference Implementation
 
-A Solidity implementation of ERC-6312 is provided below.
+A Solidity implementation of ERC-7891 is provided below.
 
 ```solidity
 // SPDX-License-Identifier: MIT
@@ -111,14 +115,14 @@ pragma solidity ^0.8.0;
 import "./ERC6150.sol";
 import "@openzeppelin/contracts/utils/Counters.sol";
 
-contract ERC6312 is ERC6150 {
+contract ERC7891 is ERC6150 {
     using Counters for Counters.Counter;
     Counters.Counter private _tokenIds;
 
     mapping(uint256 => string) private _tokenURIs;
     mapping(uint256 => uint8) public share;
     
-    constructor() ERC6150("ERC6312", "NFT") {}
+    constructor() ERC6150("ERC7891", "NFT") {}
 
     function mintParent(string memory tokenURI) external returns (uint256) {
         _tokenIds.increment();
@@ -158,10 +162,6 @@ contract ERC6312 is ERC6150 {
 }
 ```
 
-## Backwards Compatibility
-
-ERC-6312 extends ERC-721 and ERC-6150, making it backward compatible.
-
 ## Security Considerations
 
 No security considerations were found.