0xC042
February 21st, 2022

ERC-721 NES, or Non Escrow Staking, is a novel implementation of a staking model that does not require the owner of a token to lock it into an escrow contract. What that means is the token never moves during the staking process, unlike traditional protocols where you receive a coupon to then redeem later for your staked tokens. Instead, the token is flagged as non transferrable for the entire staking duration. In this way, the owner of a token has zero exposure to the risk of a staking protocol being compromised and their tokens stolen.

If a protocol is not using your token to create some sort of financial derivative, it has no business in having the permission of ownership over it.

Our hypothesis is that this distinction is an important one for blockchain gaming. As a token grows in value, the token owner is inversely incentivized for engagement: their token is locked in an escrow contract that could potentially lose their token in the case of faulty code.

NES also offers other ancillary advantages, like being able to receive purchase offers on tokens from various marketplaces or being able to easily prove ownership of a token for things like Collab.Land, Premint or Twitter.