Fractional Garment Ownership License and Distribution Standard 1.2 (FGO-0001_2)


As DIGITALAX continues to grow as an ecosystem and build out the core infrastructure layers for digital fashion, our operating system, and the broader metaversal sphere, we are steadily introducing novel web3 enabled engineering and commercial concepts that directly reinforce the catalysation of a truly decentralised commercial (deco) framework— establishing an open fabric that will allow for creators to pursue their craft in a way where they can count on the work they are doing actually moving them, and others, forward in the industry and their lives.

In this pursuit, the authenticity of the mission and our endeavours surrounding it is indispensable. Change without progress makes us all the more vulnerable to gatekeepers and other predators that are all too happy to exploit the illusion of gain. If we are perpetuating the existing model when better is so clearly available now, then that is an intentionally harmful choice. To pretend that it is the better thing whilst it is just making money for its own sake with the old methods is even worse. This is the epitome of the Red Queen and her servants in the race. Maintaining a rigged system where to simply keep your position you have to run twice as fast.

A commons cannot exist if we ignore the actions, models, systems and arrangements that are destructive to the commons. All too often, and very much native to the extractive web2 structure currently in place, power goes to those that steal a free option from society. Optimising purely for self interest in the short term results in a situation where an individual benefits themselves whilst simultaneously spreading out negative effects across the larger population. It is not just pitting short term self interest against the common good, but, moreso, it is actively destroying the rest of the population, ecosystem, and co-existing environment.

Despite the linguistic similarities, the commons is by all means not to be confused with a communist society. The commons is a societal resource where access is guaranteed to all, beyond the control of any centralized authority. It’s about ensuring that preservation of the collective is injected into the complexity of the web3 systems we are continuing to build out; ensuring that our ecosystem is incentivized to operate as an open bazaar— where a higher level of direct exchange optimises the effectiveness of the emergent evolutionary process for eradicating false positives and unlocking progressive decentralisation and utility of the ecosystem in general.

Fractional Garment Ownership is an immediate first step towards reinforcing the ground roots growth and authenticity of our ecosystem to be comprehensively responsive to the commons from the most modular, composable and programmable level—the pattern, material and texture level— as the building blocks for streamlining an entirely on-chain and open source supply chain that can be scaled across both the digital and physical realms; underpinned by ERC protocol standards (1155, 721, 998). Open is important, because we must do it right.

Building with consideration of these lower levels not only minaturises the barriers of entry and increases accessibility for more of us to be able to engage and directly see value from our active contribution to the ecosystem, but, even moreover, it systematically emphasizes the entire protocol for encompassing antifragility. It is not enough to build out anything of this nature, or any nature, and expect it to have concrete foundations and operate in an open bazaar, when it does not possess antifragility— resilience is inadequate; resilience endures shock only to remain the same. Antifragility is not just about enduring the unexpected shock, situation or extremity, but rather it’s about actually benefiting from this convexity; being able to capture the delta of the asymmetry for guaranteeing an upside and great potentiality, whether that be through succeeding or rapidly improving. Our ecosystem is structured for overcompensation as a default response, and, with FGO, it allows for others to also leverage off of this Hydra-like reflexiveness as a hedge against precarity.

Additionally to this, FGO also promotes the broader mission for interweaving modding and mod culture as a core underpinning and inherently fluid and liberating mode of action for crafting metaverse ready digital fashion. It’s not just enough to plaster buzzwords or labels onto something. For a web3 enabled digital fashion industry to be real, you also need to weave authenticity and a persistent thread of substantive adaptable variability for adherence to the promotion of dynamism, overturning of gatekeepers, and facilitation of gatemakers. Modding is the fundamental practice that drives growth and change in fashion— in everything. The methodology behind modding and the byproducts that come from it are what actually build the metaverse. And, when we think about making the metaverse a reality, in whatever form that can take, being able to mod and remix different parts of it from a fractional and composable level ensures that we are not just building the metaverse and everything related to it, but rather underwriting openness, vitality and continuous uniqueness for each personal experience.

With this said, it’s not to say that standards are not needed for establishing dependable reference points, but, it is to say that the insertion of dynamism is essential for the core functioning of a standard within a metaversal context— the standard must be able to evolve and be modded to seamlessly plug in and work with a broad variety of cases. And, for that, we are introducing the second official iteration of the Fractional Garment Ownership License and Distribution Standard 1.2 (FGO-0001_2).

Updated Metadata Guidelines

Under FGO, the on-chain metadata has remained relatively the same as FGO-0001, with two more points of inclusion (Description and unique traits);


Designer’s Title Pattern, Material, Texture Name Description Degree of Exclusivity Issue No.
Pseudonym/Real Name. Name of the item. Description of the item. Common, Semi-Rare, Exclusive. Global Categorisation across the On-Chain Libraries (i.e. 4113).


Digital Fashion Designer’s Title Master Garment Title Description FGO Creator’s Title Degree of Exclusivity Collection Classifier Name
Pseudonym/Real Name. Name of the item. Description of the item. Creator of Child NFTs in the balance. Common, Semi-Rare, Exclusive. Global Categorisation across the DIGITALAX Marketplace. Ad hoc for recognition across other applications.

The Degrees of Exclusivity (DOE) remains as a unique feature and NFT native mechanism and instrument for valuing digital goods/assets, where a rarity tier limits both the mint count of the NFT, as well as the compatibility of a child 1155 NFT within a master 721 NFT i.e. rarity metadata must match across the child and parent NFTs.

Fractional Cross Realm Royalty Compatibility

Open source doesn’t mean without monetisation. Fractional garment ownership introduces web3 native decentralised commercial models whereby a designer, creator or artist is able to gain value off of their modular contribution to the entire master garment, and also have their authorship tracked transparently on-chain throughout the full cycle of the supply chain.

Our infrastructure is being built to eventually support automated fractional royalties for any designer as they contribute to our open source libraries, and then have this leveraged in both the digital and physical dimensions. The importance of the modular pattern component in this sense is reinforced, whereby the licensing, monetisation and rarity wrapper is not limited to be defined by the physical appearance of the model/garment across the digital and physical realms— but rather by using the patterns, materials, textures as this threadline ensures that digital garments are not confined by their physical counterparts.

Digital Fashion is not confined by physics, and therefore, translating a physical fashion item directly into its exact digital counterpart isn’t scalable. It is incorrect to think of this translation purely from the perspective of the whole garment model or a sole visual sense— it is the licensing, rarity and monetisation that must maintain the interoperability; through the patterns, textures, materials. This is what ensures a global and openly scalable supply chain that seamlessly instills coverage from creation to fulfillment to ongoing re-usage; and also ensures flexibility is accounted for as the garment’s modular components can be re-mixed and modded into other master designs and creations throughout the supply chain journey, and still have this triad of functionalities (licensing, rarity, monetisation model) maintained.

Although we can’t automatically enforce in smart contract code this fractional cross-chain, cross-realm royalty distribution as of yet, we still are continuing to prove out the model and hope that those that use these open source prints contribute a fractional portion of the sales back to the DIGITALAX, as we have done and plan to do for anyone contributing to our on-chain libraries going forward.

Dynamic Value Assessment

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

As the same goes for the dynamic and evolving nature of the FGO standard, it too isn’t logical to restrict the metadata and triad of functionalities of the fractional NFT components to static values. If anything is evident about the metaverse, it is the fact that it is dynamic, lively, active, and highly moddable for hyper-personalisation. Thus, when further detailing out the specifics of FGO, from both a royalty % amount and a rarity definition level; fixed amounts aren’t scalable. In fact, although acceptable for first proving out the system, in the long term, static values work to actively destroy the commons.

FGO, reinforced by the other components of DIGITALAX’s operating system, addresses underlying problems faced currently when it comes to the fair, transparent pricing of a natively digital asset. Earlier we introduced the DOF Sheet, or, DIGITALAX’S Periodic Table of Digital Fashion Elements as a new dynamic and native digital fashion pricing framework. The DOF Sheet was inspired by the 40 year old Rapaport Report — ‘Rapaport’ being synonymous with the global ‘industry’ standard for pricing diamonds. In 1978, Michael Rapaport completely changed the diamond industry when he released this report, bringing in an industry standard price guide that was able to stabilize the diamond market, prevent price manipulation and create liquidity levels and market consensus at clearing prices for which most dealers were willing to sell.

Not that this report doesn’t come without its own downfalls and problems, and like any other resource, the prices of diamonds can fluctuate. However, there is great value and fairness in being able to have diamonds with similar attributes cost the same in Japan and the United States.

The DOF Sheet translates the Child NFT digital material, pattern libraries to convert and determine the fair price of a garment, respective of its attached/linked Child NFTs. Child NFTs can be combined and added to establish the price of an entire garment and then wrapped into the Parent NFT. The DOF sheet acts as an important step in the development of fair, efficient and competitive digital fashion markets— and the key here is that the DOF Sheet is dynamic and evolving; highly responsive and reactive to broader market, economic and industry conditions. The Degree of Exclusivity for each Child NFT has the potential to evolve and become more or less unique and valuable overtime, based on data from the item itself and derivative data.

The actual pricing mechanisms for each of the patterns and materials is currently outlined to be set across three broader categories;
1. Asset Backed: Synthetic Child NFTs are minted on the value of locked up crypto and real assets in the DIGITALAX Factory Vault i.e. BTC, DGX (Gold), ETH. Child NFTs can now be backed by real collateral and these Child NFTs can then be attached to an ERC-721 Parent NFT for introducing tangible real world value i.e. being able to back your Bitcoin Gold by locked Bitcoin, Gold.
2. Oracle Price Feeds: Synthetic Child NFTs are minted to track the live price feeds from on-chain Oracles. NFT holders can lock up stable assets as collateral in the DIGITALAX Factory Vault to meet the maintenance range around the on-chain Oracle live spot price, and then mint a Synthetic Child NFT that tracks this price and is attached to a master ERC-721 NFT. This brings in new concepts of being able to attach the real world prices of elements, materials like Cotton, diamonds into the garments.
3. Pattern and Material Decoration Bonding Curves: Synthetic Child NFTs are printed on the material patterns/decorations according to price bonding curves that take into account supply, demand, rarity, historical usage of the Child NFT amongst different Parent NFTs. Designer’s will even be able to choose, set and leverage specific bonding curves issued around their unique patterns, materials, textures.

Thus, through this and also DIGITALAX’s employment of a variant of the ERC-998 standard for wrapping the 1155 NFTs with their master 721 tokens, and also the burn mechanics for unlocking the individual patterns, materials and textures from the master garment— the underlying liquid value of the Child NFTs can be unlocked through burning the master token and so bringing even further composability, stability and liquidity for a buyer. The DOF Sheet will eventually serve as a hard indicator for the prices set across both digital and physical web3 enabled fashion items, and also more importantly, start to serve as a robust industry standard. The table will expand as more and more are discovered and thus new categories and sub-tiers will emerge.

Final Considerations

Thus, in closing, through FGO, we are building out an entire Global Designer Network of creators that align with our mission of decentralisation and open source for the fashion industry. We are here to revolutionise the entire industry and do it right; overturning gatekeepers that have become comfortable with closed, exploitative, predatory, unsustainable and studio dominant models. This second iteration of the standard focuses more on the importance of the dynamism and modability of the triad of functionalities that maintain the interoperability throughout a seamlessly web3 powered supply chain— unlocking ease of access for creators operating within a decentralised commercial environment across the digital and physical.