Fractional Garment Ownership License and Distribution Standard 1.0 (FGO-0001)


Overview

The aim with DIGITALAX is not to build just a business. We are developing and operating to build and scale an industry.

DIGITALAX was first ideated through a passion and motivation for wanting to bring immense value into an industry that has not yet been properly created or established. Digital Fashion is currently one of the biggest overlooked global industries as a stand alone market segment.

In our endeavor and action to bridge the gap between digital fashion content creation and application and utility, the effects of standards have become very apparent, not just for our own undertakings, but also for the greater industry, helping to ensure the case for rapid development and iterations, whilst still enabling the means for further reach.

Thus, in order to achieve meaningful impact, we are focusing directly on building up the infrastructure for the growth and maturation of the digital fashion industry. We are placing emphasis on the fundamental elements and setting forth the standard and dress code for the manufacture of digital fashion along the digital content supply chain, directly tying into Layer 1 of our Operating System.

This will help to shape, deliver and ensure dynamic and value-driven content for our virtual worlds that can be shipped to users as quickly as possible — content that didn’t exist a second ago and that is being created in the moment.

Here, we are bringing forth the first official iteration of the “Fractional Garment Ownership License and Distribution Standard 1.0 (FGO-0001)”, as per our 2021 roadmap.

Fractional Garment Ownership (FGO) leverages the Ethereum blockchain and ERC Protocol standards for breaking down a master ERC-721 digital garment into its programmable and composable ERC-1155 elements of materials, patterns and textures. FGO directly enables individual artists, designers to create and issue the modular building blocks and components to a master digital fashion garment, with complete on-chain verification. This directly allows for;

• Completely new models of monetisation
• An Open Source spirit injection
• Authenticated and transparent tracking at each stage of the supply chain
• A more complete framework for valuing and assessing native digital goods


How FGO Works

This reconception of Fractional Garment Ownership is all verified & uniquely secured on-chain, where the ERC-1155 NFT standard is used to issue each modular garment component bound to the individual creator's identity.

These raw digital materials, patterns, textures are designed and contributed into on-chain Open Source digital material libraries that can then be leveraged by other Digital Fashion designers in their master garments and collections.

Here, we are using a variant on the ERC-998 standard, where each ERC-721 token can hold a balance of ERC-1155 NFTs. We coin this respectively the Parent and Child NFTs. This allows for other designers to leverage off of the open source digital libraries, incorporating the patterns, materials and textures into their master garments, whilst still ensuring that all original contributors to the digital fashion item can have their IP authenticated and effectively traced across the entire journey through the digital fashion supply chain.

In concise steps:
1. A creator designs the individual materials, textures and patterns.
2. These are issued as ERC-1155 tokens, through the DIGITALAX ERC-1155 minting contracts, and under the Creator’s designated ERC-20 wallet.
3. These ERC-1155 NFTs are then open sourced into the DIGITALAX on-chain digital libraries.
4. DIGITALAX Digital Fashion Designer’s are able to incorporate these individual ERC-1155 patterns/textures into the main Digital Fashion Garment NFTs.
5. The Digital Fashion Garment NFTs are thenissued as ERC-721 tokens under the digital fashion designer’s ERC-20 wallet addresses on the DIGITALAX platform.
6. These ERC-721 NFTs are then linked with the relevant ERC-1155 tokens on-chain through the DIGITALAX variant ERC-998 contract.


Metadata Guidelines

Under FGO, the on-chain metadata includes;

ERC-1155

FGO Creator’s Title Degree of Exclusivity Issue No. Type
Pseudonym/Real Name Common, Semi-Rare, Exclusive. Global Categorisation across the On-Chain Libraries (i.e. 4113). Pattern, Material or Texture (i.e. P, M, T).


ERC-721

Digital Fashion Designer’s Title FGO Creator’s Title Degree of Exclusivity Sale Type and Order
Pseudonym/Real Name Creator of Child NFTs in the balance. Common, Semi-Rare, Exclusive. Global Categorisation across the DIGITALAX Marketplace (i.e. Auction04, Instant Buy02).


Degrees of Exclusivity (DOE) classifies all of the designs in our marketplace under different rarity tiers. DOE acts as both an on-chain sorting feature for efficiently grouping and cataloguing our Open Source on-chain libraries, and, also as a mechanism and instrument for valuing native digital goods/assets.

DOE is not a limitation on the issuance balance of the ERC-1155 token, but rather, it is a constraint and specification as to which master ERC-721 garments it can be manufactured in. For example; a Common labelled Child NFT must only be used within a Common Parent/master garment NFT, or, in other words, Parent NFTs must share the same DOE trait as their “Children”.

The process for determining the DOE of an ERC-1155 Child NFT is defined under the Native Digital Asset Valuation Mechanism.

Monetisation Model

Sales of garments incorporating FGO are beneficial for both the Digital Fashion Designer and the pattern, material, texture supplier. Contribution royalties from the modular assets flow to the issuers of the Child NFTs for each sale of the master garment that incorporates their assets. The exact royalty provided back to the Child NFT issuer can be likened to the Lightning Network Fee Market, where each Child NFT issuer can define the percent from the total master garment sale that should be paid back to them and adjust these fees based on the competitive landscape.

As the on-chain material, pattern and texture libraries scale, and further liquidity is injected into the market, the interrelationship and balance between the defined royalty fees by the Child NFT issuer and usage of their modular component within a master garment will be strongly driven by the library's competitive landscape— helping to enable an equilibrium against the marginal output costs by the Child NFT creator i.e. minting fees, marginal resource costs etc.

Strict enforcement mechanisms of these modular royalties are not outlined in FGO-0001, considering that as of yet, cross-contract/platform secondary sale percentage distributions are not universally binding.

IP and Licensing

The spirit of Open Source is embedded within FGO. All of the digital materials, textures and patterns in the on-chain libraries are perpetually linked to the DIGITALAX Open Source License Standard. Under this distribution, Digital Fashion Designer’s are able to leverage on the Child NFT content for use within their own digital supply chain and creation of their master digital fashion garment— at the condition of making sure to adhere strictly to the metadata guidelines and outlined monetisation model. The Open Source nature of the digital materials, patterns and textures will be initially constrained to only being Open Sourced for use by Digital Fashion Designers that are fabricating garments for sale on the DIGITALAX marketplace or use within the DIGITALAX content ecosystem.

With the scaling of FGO, DIGITALAX further plans to incentivise an Open Source mantra into the source creation process of the Child NFT materials, patterns and textures— promoting a contribution based model, and establishing the right structures for open remixes of the assets.

Introducing proper and more transparent IP management and clarity across the supply chain ensures the development of streamlined, efficient on-chain digital ownership and democratised access channels for independent artists, digital fashion designers, brands, creators to be able to contribute creative supply into the broader digital fashion ecosystem— supporting the inevitable shift in the fashion industry from the current centralised, siloed ‘winner takes all’ model that forces creativity into a black box.

Native Digital Asset Valuation Mechanism

FGO is addressing underlying problems faced when it comes to the fair, transparent pricing of natively digital assets. The market is currently opaque and there are no real standards. Prices are often not backed by any proper justification or tangible value and so rely on traditional pricing mechanisms that in fact aren’t relevant to a digital-only product.

We are setting forth a more complete framework for valuing and assessing native digital goods— like that of digital fashion. The fractional material, texture and pattern composable components promote higher value and creativity across the master garment fashion pieces and also play an important role in weighing in on their rarity definitions and parameters. Here, our asset valuation mechanism addresses directly the influence that levels of exclusivity and rarity play in defining the intrinsic worth of a natively digital asset, and, further to this, identifies the natively digital factors that should be counted and included for evaluating and deciding on the Degree of Exclusivity of a digital asset.

In our current internet digital ecosystem, the most valuable native digital information, assuming that all content starts out equally, is driven by its ability to carry a message or story that can catalyse a strong emotional connection and capture an audience. Common assets are able to gain uncommon appeal through their ability to tell a story. The story acts as the baseline for the value. And, when enough engagement materialises, the content often then takes on a life of its own, rapidly spreading into what we term “virality”, and so even further amplifying the perceived digital value of the information as it is exponentially shared.

Our mechanism for determining the Degrees of Exclusivity of a fractional garment component is linked directly to the relational fabric of that component to its surrounding virality and content graph— where ultimately, a common asset can dynamically move to a state of semi-rare or even 1-1 exclusive through its ability to establish greater engagement, emotional appeal and shareability through explicit means of content generation— virality.

The Degree of Exclusivity for each Child NFT is thus able to have direct influence on the valuation of the master garment, where the individual patterns, materials and textures can be combined and added to establish the value of the entire garment—providing a maintenance margin and more direct intrinsic backing. This native digital asset valuation mechanism keeps the Child and Parent NFTs dynamic, evolving and efficiently relevant to a respective market price judgement.

Final Considerations

The Fractional Garment Ownership License and Distribution Standard 1.0 (FGO-0001) is DIGITALAX’s first iteration in an evolving landscape that we are continuously building towards greater foundational integrity. It is core to Layer 1 of our Operating System and sets forth the standard and dress code for manufacturing composable, programmable, transparent and value backed digital fashion along the digital content supply chain.