# Decentralized Autonomous Marketplace (DAM) Satoshi Nakajima - Sep 17, 2022 The blockchain is a gift from Satoshi Nakamoto, but we still haven't found the killer application, which offers huge value to our society and changes our business practices or even our lifestyle. I'd like to present one idea, Decentralized Autonomous Marketplace (DAM), which has the potential to become such a killer application. Here is the definition of a Decentralized Autonomous Marketplace (DAM). 1. A DAM is a marketplace of digital assets (= contents), such as images, videos, music, 3d models, or even data sets. 2. All sales transactions on a DAM are processed by its smart contract autonomously. 3. Its smart contract defines the revenue distribution rules (among creators and other contributors). 4. The revenue distribution will be done immediately as part of each sales transaction. 5. All the required gas fees (including the revenue distribution) will be paid by the buyer. 6. The payee of a revenue distribution could be another smart contract, which has its own revenue distribution rules (nested revenue distributions). Because all the sales transactions and associated revenue distributions are processed by its smart contract autonomously, a DAM has several advantages over existing marketplaces. 1. No operation cost 2. No middle man 3. No server cost 4. No central authority (fully decentralized) 5. Transparent revenue distribution rules 6. Immediate revenue distributions 7. Public record of revenue distributions 8. Zero audit cost 9. Perpetual service (as long as the blockchain exists) I believe it has a potential to create a "creator centric" ecosystem, where creators (artists, musicians, film makers, evelopers, and etc.) can earn significant income from it, while encouraging consumers to enjoy permissionless remix culture of Web3 and Creative Commons. I am developing the first instance of DAM, which allows creators to publish their vector drawings to the on-chain asset store and generate revenue from them (Draw2Earn application). Please see [On-Chain Asset Store, Composer and Decentralized Autonomous Marketplace](https://hackmd.io/@snakajima/HJva6n-Jj) for details.
Last changed by  
 
Satoshi Nakajima
861

Read more

On-Chain Asset Store, Asset Provider, Composer and Decentralized Autonomous Marketplace

This is the summary document, which describes the vision & mission of this project and technologies, protocols and methods we are building, such as SVG compression, on-chain asset strore, crowd-Minting, asset providers and Draw2Earn app. Importance of being Fully On-chain While decentralization is one of the fundamental values of Web3, most NFTs (including bluechip NFTs such as BAYC and Azuki) are not fully on-chain, storing metadata and images on either HTTP server or IPFS. Those NFTs will become inaccessible once the NFT providers cease to exist or simply stop supporting them. It means those NFTs are not yours, and they are under the control of NFT providers, just like many Web2 services. They are more like Web 2.5 NFTs. On the other hand, fully on-chain NFTs such as Nouns are guaranteed to "exist" a hundred years from now, as long as the blockchain exists.

12/13/2022
Decentralized NFT

A major flaw of ERC721 While NFT is playing a very important role to bring more people into the Web3 ecosystem and even create new income opportunities for artists, the protocol itself, ERC721, is still very immature and has a few fundamental issues. Royalties are not enforceable. Many NFTs are stolen. It is not decentralized. Because royalties are not part of ERC721, it is up to the marketplaces, such as OpenSea, to pay royalties. As the result, many royalty-free were born, and the "Race to the Bottom" has started.

12/12/2022
Read more from Satoshi Nakajima
Published on HackMD