Get Started in Simple Steps:

1. Go to the 1Combo homepage (https://1combo.io/), click Launch App, and connect your wallet.

2. After clicking Launch App, navigate to the Share Market, select an NFT, and start trading Shares.

3. Click Portfolio to view your NFTs. Select Share to Earn to license your NFT, list its Shares on the Share Market, and earn 5% of the tax fee from each Share trade. Licensing also grants you one free Share. All earned ETH will be displayed in your Portfolio.

4. Click Mint Combo, then select Combo to start generating a Combo NFT (NFT Derivative Work).

   1. My Shares: These are the Shares you already own. Consuming one Share allows you to create a Combo NFT.

   2. Hot Shares: You can select popular Shares from the market. If you don’t own the selected Share, clicking Combo combines the steps of buying a Share and creating a Combo into one action.

1. Navigate to Mint Combo

   • Visit the 1Combo homepage (https://1combo.io/), click Launch App, and select Mint Combo.

2. Choose Your Shares

   • On the left side, select from:

     • My Shares: Shares you already own. Consuming one Share allows you to create a Combo NFT.

     • Hot Shares: Popular Shares available on the market. If you don’t own the selected Share, clicking Combo combines the process of buying a Share and creating a Combo NFT into one step.

1. Select a Target Collection

• On the right side, choose your desired Combo NFT Collection, then click Combo.

1. Remix and Mint

• After clicking Combo, you’ll enter the interface to remix AI Prompts with the original NFT image.

• Click Mint Combo, then wait for the countdown to complete the generation of your new NFT image.

1. Mint the Combo NFT

• Once the new image is generated, click Claim to mint your Combo NFT.

This protocol is also known as ERC721X, which extends the ERC721 standard to allow users to remix multiple existing NFTs and create a new NFT derivative work, while their relationships can be traced on the blockchain. It contains three core modules, remix module, network module, and license module.

Remix Module

This module extends ERC-721 standard and enables users to create a new NFT by remixing multiple existing NFTs, whether they’re ERC-721 or ERC-1155.

// SPDX-License-Identifier: CC0-1.0
pragma solidity ^0.8.10;

interface IERC721X {
    // Events

    /// @dev Emits when a combo is minted.
    /// @param owner The owner address of the newly minted combo
    /// @param comboId The newly minted combo identifier
    event ComboMinted(address indexed owner, uint256 indexed comboId);

    // Structs

    /// @param tokenAddress The NFT's collection address
    /// @param tokenId The NFT identifier
    struct Token {
        address tokenAddress;
        uint256 tokenId;
    }

    /// @param amount The number of NFTs used
    /// @param licenseId Which license to be used to verify this component
    struct Component {
        Token token;
        uint256 amount;
        uint256 licenseId;
    }

    // Functions

    /// @dev Mints a NFT by remixing multiple existing NFTs.
    /// @param components The NFTs remixed to mint a combo
    /// @param hash The hash representing the algorithm about how to generate the combo's metadata when remixing multiple existing NFTs.
    function mint(
        Component[] calldata components,
        string calldata hash
    ) external;

    /// @dev Retrieve a combo's components.
    function getComponents(
        uint256 comboId
    ) external view returns (Component[] memory);
}

Depending on the different NFT derivative works, the parameters required in the mint function of the respective remix module vary.

In the NFT Derivatives section, we will provide examples of how to create NFT derivative works through 1Combo.

Network Module

This module follows the singleton pattern and is used to track all relationships between the original NFTs and their NFT derivative works.

// SPDX-License-Identifier: CC0-1.0
pragma solidity ^0.8.10;

import "./IERC721X.sol";

interface INFTNetIndexer {
    /// @dev Verify if the `child` was created by remixing the `parent` with other NFTs.
    /// @param parent Any NFT
    /// @param child Any NFT
    function isParent(
        IERC721X.Token calldata parent,
        IERC721X.Token calldata child
    ) external view returns (bool);

    /// @dev Verify if `a` and `b` have common `parent`s
    /// @param a Any NFT
    /// @param b Any NFT
    function isSibling(
        IERC721X.Token calldata a,
        IERC721X.Token calldata b
    ) external view returns (bool, IERC721X.Token[] memory commonParents);

    /// @dev Return all parents of a `token`
    /// @param token Any NFT
    /// @return parents All NFTs used to mint the `token`
    function getParents(
        IERC721X.Token calldata token
    ) external view returns (IERC721X.Token[] memory parents);
}

Whenever a Combo is created, the network module will be notified to record the newly generated network relationship, making it public and immutable for other applications.

In the NFT Network section, we will explain the different types of network relationships.

License Module

By default, users can only remix multiple NFTs they own to create new NFT derivative works. This module enables NFT holders to grant others permission to use their NFTs in the remixing process.

// SPDX-License-Identifier: CC0-1.0
pragma solidity ^0.8.10;

import "./IERC721X.sol";

interface ILicense {
    /// @dev Verify the permission when minting a combo
    /// @param user The minter
    /// @param combo The new NFT to be minted by remixing multiple existing NFTs
    /// @return components The multiple existing NFTs used to mint the new combo
    function verify(
        address user,
        IERC721X.Token calldata combo,
        IERC721X.Component[] calldata components
    ) external returns (bool);
}

Depending on the specific NFT licensing method, the verify function of the respective license module is triggered to ensure the minter owns the necessary permissions to create the new NFT derivative work.

In the NFT License section, we will introduce several common licensing methods.

What is 1Combo?

1Combo is an open IP protocol that enables decentralized AI-powered IP remixing, peer-to-pool IP trading, and on-chain IP tracking.

How to Earn on 1Combo?

1. License your NFT (Share-to-Earn): Earn 5% of the trading fees from shares of your NFT.

2. Trade Shares to Earn: Profit from price fluctuations by trading shares.

3. Use Shares to Earn: Collect trading fees from the later combos.

All earnings are paid in ETH.

What is the Share Market?

A peer-to-pool market for trading NFT Shares with prices based on a bonding curve. Each trade incurs a 10% tax fee: 5% to NFT holders, 2.5% to Combo NFT holders, and 2.5% to the platform.

What is Share-to-Earn?

License your NFT to list its Shares on the Share Market and earn 5% of the tax fee from each Share trade. Licensing also grants you one free share.

Can I transfer my NFT after licensing?

Yes, licensing does not lock or restrict your NFT. You can transfer it at any time. Please note that claims can only be made from the wallet holding the licensed NFT.

What is Mint Combo?

Burn a Share to mint a Combo NFT (NFT Derivative Work), generated by remixing the original NFT and an AI-prompted NFT. Combo NFTs earn 2.5% of all related Share trading tax fees.

1Combo aims at an open IP ecosystem. Within the 1Combo ecosystem, there are 4 types of participants: NFT holders, NFT Share traders, Combo NFT holders, and Combo Magic creators. Every participant can benefit fairly from the growth of IP.

Next, we will introduce the economic models of these participants.

NFT Holders

NFT holders possess both IP ownership and IP license rights. With these rights, they can create and trade derivative works. Additionally, they can activate the "NFT Share" features for their NFTs, allowing others to trade shares of the NFT's License. Once activated, NFT holders can obtain one free share and also benefit from 5% tax on each share trade.

NFT Share Traders

According to the Bonding Curve of NFT Share, the more shares sold, the higher the price of each share. NFT Share traders profit by buying shares of a particular NFT and selling them when the share price rises, with a tax rate of 10%.

Combo NFT Holders

Combo NFT holders profit by purchasing shares of a specific NFT and using that share to create licensed NFT derivative works. All derivative works licensed by a particular NFT can equally divide the 2.5% tax from each of its share trade. The remaining 2.5% tax from each NFT Share trade goes to 1Combo as protocol revenue.

Combo Magic Creators

Combo Magic creators are whitelisted derivative artists. When these artists reimagine a particular IP, they might need additional IPs like fonts, images, videos, audios, or even Mid-journey Prompts. These additional IPs can be converted into NFTs for rights registration and pricing, and then be bundled into a Combo Magic. When other users utilize this Combo Magic to generate derivative works, the creators of these additional IPs can earn profits.

Combo

A Combo refers to a unique, newly minted NFT derivative work that is created by remixing multiple existing NFTs. In 1Combo, selecting the Combo button will lead you to create a new NFT derivative work.

Combo Magic & Combo Collection

Combo Magic, also called 'Magic', is a template for creating NFT derivative works. "Magic" contains one or more Stickers or Potions. When 'Magic' is applied to a target NFT collection, it generates a new NFT derivative collection known as 'Combo Collection'.

Sticker & Potion

In 1Combo, text, images, audio, videos, and even Mid-Journey's prompt can be remixed with the original NFT to generate NFT derivative works. These text, images, audio, videos, and Mid-Journey's prompt are referred to as Sticker or Potion.

NFT Derivatives

Multiple existing NFTs can be remixed to create a new NFT derivative work, also known as NFT derivatives or "Combo". All NFTs in a Combo Collection are NFT derivatives.

NFT Network

Using the NFT network, the relationship between the original NFT and its derivative works can be identified and tracked on the blockchain.

NFT License

In 1Combo, individuals have the ability to license NFTs in diverse ways. NFT holders are encouraged to grant others permission to use their NFTs in the remixing of NFTs.

Share to Earn

"Share to Earn" is one type of NFT license that allows other users to trade shares of your NFT license and enables you to profit from it. These traded shares can be used as the original NFT to be remixed with other NFTs and create new NFT derivative works.

Share to Earn:

For NFTs in your wallet, click Share to Earn to license your NFT, list its Shares on the Share Market, and earn 5% of the tax fee from each Share trade. Licensing also grants you one free Share.

Claim Earnings:

• Click Claim All to withdraw all earned ETH.

• Alternatively, click the Claim button next to a specific NFT to withdraw the earnings from its Shares.

In 1Combo, elements like text, image, audio, video, and even Mid-Journey's Prompt can be remixed with the original NFT to generate unique NFT derivative works. These elements are termed as Sticker or Potion.

The difference between Sticker and Potion lies in the visual appearance of the NFT derivative work generated after remixing with the original NFT. With a Sticker, the visual appearance of the original NFT remains unchanged, while with a Potion, it changes. For instance, adding decorations to your PFP-type NFT uses a Sticker. However, transforming your PFP NFT from an adult appearance to that of a child requires a Potion.

Here are two examples：

Example 1 - Sticker

Cosplay Ape is a derivative NFT collection of BAYC, also known as a Combo Collection. Every BAYC can be dressed up in this series.

Users can choose one Sticker-type NFT each from the Hat, Earring, and Clothing collections, and then remix them with their own BAYC NFT to create a new NFT derivative work in the Cosplay Ape collection. During the remixing process, users can adjust the size, position, and angle of these four NFTs, but the visual appearance remains unchanged. Once remixed, the Sticker-type NFTs are consumed.

Example 2 - Potion

Mutant House is a derivative NFT collection of MAYC, where any MAYC can transformed into a unique house.

Users can remix their own MAYC NFT with a Potion-type NFT named House Potion to create a new NFT derivative work in the Mutant House collection. During the remixing process, the Mid-journey's prompt recorded in the House Potion will be utilized by AI to create a House based on the original MAYC image, retaining the original MAYC's traits but with a dramatically altered visual appearance. Once remixed, the Potion-type NFTs are consumed.

Conclusion

Regardless of whether the appearance of the original NFT changes during the remixing process, the relationships between the original NFT and all its NFT derivative works are traceable on the blockchain. This introduces a new narrative within the NFT ecosystem: NFT Network.

IP & Open IP

The internet is flooded with fresh content every day. But with the traditional IP infrastructure, IP registration and licensing is challenging for digital creators. The rapid creation of digital content has eclipsed the slower pace of IP registration, leaving much of this content unprotected. This means digital creators can't fairly earn from their work's spread.

With this backdrop, we're passionate about building an Open IP ecosystem tailored for today's digital creators. Here, with just a few clicks, creators can register, license, and monetize their content globally, without geographical or linguistic barriers.

Our Solution - 1Combo

1Combo is an open IP protocol that enables decentralized AI-powered IP remixing, peer-to-pool IP trading, and on-chain IP tracking.

IP Remixing - NFT Derivatives

With 1Combo's creative tools, text, images, audio, video, and even Mid-Journey's Prompt can be remixed with the original NFT to generate unique NFT derivative works.

IP Trading - NFT License

With 1Combo's innovative IP market, NFT holders can use a special math trick (called the bonding curve algorithm) to sell their NFT licenses in shares. People can trade these shares or use them to make new NFT derivative works.

IP Tracking - NFT Network

With 1Combo's remixing magic, original NFTs and their NFT derivative works are automatically linked within the on-chain NFT network.

Absolutely, users can remix their own NFTs to create new NFT derivative works. Also, with the Delegate protocol, users can grant a "hot wallet" to access an NFT from their secure "cold wallet". Then, this "hot wallet" can remix the NFT with others to create new NFT derivative works.

About Us

1Combo started with a group of passionate BAYC fans. A big shoutout to Yuga Labs - their decision to open BAYC's IP led to its impressive growth, which inspired us. Over the past year, more and more NFT OGs have joined us in building an open IP ecosystem for the global youth. Thanks for the support, and we're pushing forward with determination!

To enhance IP liquidity, 1Combo offers diverse NFT licensing methods enabling NFT holders to grant others permission to use their NFTs and create new NFT derivative works. Here, we highlight the default one.

NFT Share

The optimal solution for maximizing IP liquidity is to tokenize NFT license and then build a decentralized NFT license liquidity market. Among various tokenization methods, 1Combo prioritizes the one (known as ) based on the Bonding Curve to issue shares of NFT license.

In this approach, the holder of a specific NFT can activate its NFT Share, allowing anyone to buy and sell shares of the NFT license. If a user purchases a share of a specific NFT, even if they don't own that NFT, they can use up one share to obtain permission to remix that NFT with others to create a new derivative work.

As mentioned above, the sold shares of an NFT can be in two states: unused and used. If we denote the unused sold shares of an NFT as S and the used ones as D, then the price for the next NFT share adheres to the following Bonding Curve formula. Users can freely buy or sell unused shares at the price calculated by this formula.

The first share of each NFT is free and gifted to the NFT holder when its NFT Share is activated. Additionally, each share trade has a 10% tax, of which:

• 5% can be withdrawn by the current NFT holder. If the NFT holder does not claim the earnings before transferring the NFT, then the new NFT holder can withdraw all accumulated earnings.

• 2.5% is equally distributed to the current holders of all NFT derivative works created using the share. These earnings also need to be claimed by the holders of the NFT derivative works. If the ownership of the derivative NFT is transferred before the claim, then the new derivative NFT holder can withdraw all accumulated earnings.

• 2.5% goes to 1Combo as protocol revenue.

This document introduces the NRC20 token standard, an extension of ERC20, aimed at addressing the challenges of NFT liquidity and utility. NRC20 allows NFTs to issue fungible tokens, enabling decentralized trading and derivative NFT creation. The protocol seeks to unlock the IP value of NFTs while fostering a scalable and efficient trading ecosystem.

Background

Non-Fungible Tokens (NFTs) and ERC20 tokens represent two key pillars of the blockchain ecosystem. While ERC20 tokens are fungible and widely used in financial applications, NFTs are unique and tailored for digital asset ownership. However, both standards have limitations:

1. ERC20 Limitations:

   • Fungibility restricts the representation of unique assets.

   • Tokens lack inherent ties to intellectual property (IP).

2. NFT Limitations:

   • Illiquidity due to reliance on peer-to-peer trading.

   • Underutilized IP value with minimal integration into financial systems.

By combining the strengths of ERC20 and NFTs, NRC20 seeks to address these limitations while unlocking new opportunities.

Problem

The current blockchain ecosystem is constrained by:

• Limited integration of NFTs into DeFi and other financial applications due to their non-fungibility.

• Inefficiencies in NFT trading stemming from illiquidity and fragmented markets.

• A lack of mechanisms to derive additional value from NFT-based IP.

Solution

The NRC20 protocol provides a structured framework to overcome these challenges by introducing:

• Fungible Representation of NFTs: Each NFT can issue a unique NRC20 token, allowing its value to be represented in a fungible, tradeable form.

• Customizable Bonding Curve Liquidity: NRC20 tokens use a Bonding Curve model to ensure continuous liquidity. The specific curve is determined by the implementing project, allowing for flexibility.

• Derivative NFT Creation: Users can burn NRC20 tokens to mint derivative NFTs, fostering creativity and enabling new use cases.

• Integrated Incentive Mechanisms: NRC20 introduces fee-sharing systems to align the interests of creators, traders, and derivative holders.

Comparison

NRC20 vs. ERC20:

• Fungibility: Both are fungible, but NRC20 is tied to unique NFTs, representing distinct IP values.

• Liquidity Model: NRC20 introduces Bonding Curve-based liquidity, unlike ERC20’s fixed supply model.

• Application: NRC20 extends ERC20 functionality to integrate unique asset representation and derivative creation.

NRC20 vs. NFTs:

• Tradability: NRC20 tokens are traded on decentralized exchanges with continuous liquidity, overcoming the illiquidity of traditional NFTs.

• Utility: NRC20 enables derivative creation and financial integration, while NFTs are primarily static digital assets.

• Incentives: NRC20 includes mechanisms to reward both original NFT creators and derivative holders.

Implementation

Each NFT can initialize a unique NRC20 token with no fixed supply cap, enabling flexible issuance and adaptation to project-specific needs. Liquidity is maintained using a customizable Bonding Curve model, which ensures continuous and decentralized trading. Users can burn NRC20 tokens to create derivative NFTs, linking these assets back to the original NFT and preserving on-chain provenance. The protocol supports optional mechanisms for incentivizing creators and derivative holders, fostering a sustainable and engaged ecosystem.

Technical Interface

The following interface extends ERC20 to include functionalities specific to NRC20:

interface INRC20 is IERC20Metadata {
    function initialize(
        address share_,
        address initialMintTo_,
        uint256 initialMintAmount_,
        string memory name_,
        string memory symbol_
    ) external;

    function burn(address account, uint256 value) external returns (uint256);

    function mint(address account, uint256 value) external returns (uint256);

    function consume(address account, uint256 value) external returns (uint256);

    function consumed() external view returns (uint256);
}

Benefits

• Enhanced Liquidity: The Bonding Curve model ensures that NRC20 tokens remain liquid and tradeable, even in volatile markets.

• Realizing IP Value: Fungible tokens derived from NFTs unlock their potential for broader financial applications.

• Incentivized Participation: Fee-sharing mechanisms reward ecosystem participants, promoting sustainability.

• Creative Expansion: Derivative NFT creation enables new opportunities for creators and traders to build upon existing works.

Conclusion

NRC20 combines the strengths of ERC20 and NFTs to address the challenges of liquidity, utility, and engagement in the blockchain ecosystem. By enabling fungible tokenization, continuous trading, and derivative creation, NRC20 creates a robust framework for NFT assetization and innovation.

In 1Combo, the relationships between the original NFT and all its NFT derivative works are traceable on the blockchain. Here, we categorize these relationship as:

• Parent Relationship: Connects the original NFTs to their derivatives.

• Sibling Relationship: Binds NFT derivatives that have a common original NFT.

• Partner Relationship: Ties together the original NFTs that were remixed to create a new one.

Using the "On-chain Map" feature in 1Combo, users can view the parent and all the children of any NFT within the NFT Network.

The NFT network woven from these relationships will become the new NFT infrastructure, bringing new possibilities for NFT applications.

A new era of NFT

1Combo is creating a fully open and decentralized network for NFTs. Accessing these relationships doesn't require permission from any third party. Any contract can access these relationships, paving the way for designing more open, engaging, and innovative NFT applications.

A peer-to-pool market for trading NFT Shares with prices determined by a bonding curve. Each trade incurs a 10% tax fee:

• 5% goes to NFT holders,

• 2.5% to Combo NFT holders,

• 2.5% to the platform.

Learn more about the mathematical model and economic mechanism of the Share Market: https://docs.1combo.io/1combo/protocols/nft-licenses.

Steps to start trading on Share Market:

1. Go to the 1Combo homepage (https://1combo.io/), click Launch App, and navigate to the Share Market.

1. Select any NFT you are interested in, click on the avatar, and proceed to the trading interface to start trading.