[TEP-111] Enhancing Blockchain Asset Management: Introducing NFT Burning Functionality to TON

Overview

This technical document outlines a proposal for introducing NFT (Non-Fungible Token) burning functionality within the TON blockchain ecosystem. The primary goal is to address the challenges associated with asset duplication and storage inefficiency, especially concerning NFTs that traverse between chains. By implementing a standardized approach to NFT burning, this proposal seeks to ensure the integrity of digital assets and optimize blockchain storage.

Proposal Information

  • TEP (TON Enhancement Proposal): TEP Template
  • Title: Enhancing Blockchain Asset Management: Introducing NFT Burning Functionality to TON
  • Status: Draft
  • Type: Contract Interface
  • Authors: Dima Brook
  • Creation Date: 07.02.2023
  • Replaces: TEP-62
  • Replaced by: TEP-63

Rationale

The motivation behind this proposal stems from the need to manage NFTs effectively as they are minted, transferred, or bridged across different blockchain platforms. Specifically, it aims to prevent:

  1. Asset Duplication and Double Spending: Ensuring a single, consistent state of an NFT across multiple chains.
  2. Inaccurate Display by Marketplaces and Explorers: Avoiding the representation of non-existent or inoperable tokens.
  3. Unnecessary Storage Consumption: Reducing the footprint of obsolete data within the blockchain’s nodes.

To achieve these objectives, the proposal outlines a method for securely and efficiently burning NFTs that are no longer required or have been moved back to their original chain or another foreign chain.

Implementation Guide

The process involves two primary actions:

  1. Destruction of NFT Contracts: Contracts holding the NFT must be irrevocably destroyed, and all associated records within the collection smart contract must be either removed or nullified.
  2. Asset Marking: As an interim solution, assets can be marked as “BURNED” to be filtered out by marketplaces and explorers. However, this does not address the issue of storage optimization.

Comparison Table

Aspect Current Approach Proposed Solution
Asset Duplication Prevention Limited Directly addresses with NFT burning
Storage Optimization Not applicable Enhanced by removing or nullifying NFT records
Marketplace & Explorer Accuracy Relies on manual filtering Improved through clear marking or removal of assets
Security Measures Not specified Includes protection against malicious burning actions
Historical Consistency Potentially compromised Ensured through the retention of burning transactions alongside other transaction types

Drawbacks and Security

The proposal acknowledges potential drawbacks, including the risk of malicious burning actions. It suggests implementing robust security mechanisms to safeguard against unauthorized destruction of assets. Additionally, maintaining chain history’s integrity is emphasized, recommending that burning transactions be recorded to ensure a comprehensive and consistent blockchain ledger.

Rationale, Alternatives, and Prior Art

The document contrasts the proposed NFT burning functionality with existing alternatives, such as transferring tokens to a “dead” address, highlighting the superiority of the proposed method in preventing asset duplication and confusion with semi-fungible tokens (SFTs). It references prior implementations like the EVM OpenZeppelin Burnable Extension as a foundation for developing a standardized approach within the TON ecosystem.

Unresolved Questions and Future Directions

Several questions remain open, including the need to update the TEP-62 standard to incorporate burning functionality and the requirement for NFT marketplaces and explorers to adapt to the updated standard. The document also opens the door to future considerations, such as the integration of SFTs into the standard to accommodate assets with identical metadata but differing ownership or characteristics.

Conclusion

This proposal sets the stage for a significant enhancement in managing digital assets within the TON blockchain. By introducing a standardized NFT burning functionality, it aims to streamline asset management, enhance security, and optimize storage, thereby contributing to the overall efficiency and integrity of the blockchain ecosystem.