Update ERC-7743: Complete Architecture Overhaul - Direct Author Minting + Platform Fee System + Payment Fixes

[jamesavechives]

Summary

Major architectural overhaul of ERC-7743 that transforms it from admin-controlled minting to fully decentralized direct author minting, adds a comprehensive platform fee system for sustainable monetization, and fixes the fundamentally broken payment system that required contracts to pay from empty balances.

🚀 Major Architecture Changes

🔧 Direct Author Minting (Security & Decentralization)

• Before: Admin-controlled minting with server-stored private keys
• After: Authors mint directly using their own wallets
• Security: Eliminates admin private key storage on servers
• Decentralization: No central authority required for token creation
• UX: Authors control their own minting process

💰 Platform Fee System (Monetization)

• Dual Revenue Model: Provider royalties + Platform fees
• Configurable Platform Fees: 0-10% range (basis points)
• Automatic Fee Distribution: Smart contract handles all payments
• Admin Controls: Platform fee ratio and recipient management
• Transparent Costs: Users can query exact fees before transactions

🔧 Core Payment System Fix

• Before: Contract pays from address(this).balance (always fails)
• After: Users send ETH with msg.value to cover all fees
• Enhanced: Now handles both provider fees AND platform fees

🆕 New Features Added

Minting Functions

• Direct Minting: provide() now allows authors to mint directly to themselves
• Removed: mintTokenTo() - simplified to direct author minting only
• Security: No more admin-only minting restrictions

Platform Fee Management

function setPlatformFeeRatio(uint256 newRatio) external onlyOwner;
function setPlatformFeeRecipient(address newRecipient) external onlyOwner;
function calculatePlatformFee(uint256 transferValue) public view returns (uint256);
function getTransferCostBreakdown(uint256 assetId, address caller) 
    external view returns (uint256 providerFee, uint256 platformFee, uint256 totalCost);

Enhanced Transfer System

• Dual Transfer System:
  • transferFrom(): Free transfers (ERC-721 compatibility)
  • transferFromWithPayment(): Paid transfers with provider royalties + platform fees
• Provider Fee Exemption ⭐ Maintained:
  • Original authors/providers can transfer their own tokens without paying fees
  • Eliminates awkward "pay yourself" scenario for creators
• Smart Transfer Function ⭐ Enhanced:
  • smartTransfer(): Now handles both provider and platform fees automatically
  • Optimal UX - providers get free transfers, others pay total fees
• Enhanced Cost Calculation:
  • getTransferCost(): Returns total cost (provider fee + platform fee)
  • getTransferCostBreakdown(): Detailed fee breakdown for transparency

New Events

event PlatformFeeUpdated(uint256 oldRatio, uint256 newRatio);
event PlatformFeeRecipientUpdated(address oldRecipient, address newRecipient);
event PlatformFeePaid(uint256 indexed assetId, address indexed payer, uint256 feeAmount);

💡 Enhanced Fee Logic Matrix

Caller	Provider Fee	Platform Fee	Total Cost	Implementation
✅ Provider (Original Author)	❌ $0	❌ $0	❌ FREE	Free transfer + ETH refund
✅ Anyone (Transfer Value = 0)	❌ $0	❌ $0	❌ FREE	Free for zero-fee assets
❌ Other Token Owner	✅ Set by provider	✅ % of provider fee	✅ Provider + Platform	Dual fee payment

🏗️ Platform Fee Calculation

Total Cost = Provider Fee + Platform Fee
Platform Fee = Provider Fee × Platform Fee Ratio ÷ 10,000
Example: Provider Fee = 1 ETH, Platform Fee = 2.5% → Total = 1.025 ETH

🔒 Security Enhancements

• No Admin Private Keys: Eliminated server-side key storage
• Fee Validation: Maximum 10% platform fee limit
• Payment Validation: Proper ETH handling and excess returns
• Access Controls: Only contract owner can modify platform fees

📖 Updated Specification

• Interface Updates: All new functions added to IDigitalAsset
• Documentation: Comprehensive platform fee system documentation
• Events: Complete event coverage for fee management
• Examples: Updated code examples with platform fee logic

✅ Benefits Summary

• 🔐 More Secure: No admin private keys stored on servers
• 🌐 Fully Decentralized: Authors control their own minting
• 💰 Sustainable Revenue: Dual fee structure for platforms
• 👨‍🎨 Creator-Friendly: Authors don't pay fees to transfer their own work
• 🔄 Backward Compatible: Standard transferFrom() still works
• ⚡ Transparent: Clear fee breakdown before transactions
• 🛡️ Production Ready: Working payment system with proper validation

🧪 Testing Coverage

✅ Tested direct author minting functionality
✅ Verified platform fee calculation and distribution
✅ Confirmed dual fee payment system works correctly
✅ Tested provider fee exemption logic
✅ Verified smart transfer automatic fee detection
✅ New: Tested platform fee management functions
✅ New: Verified fee recipient updates work correctly
✅ New: Confirmed maximum fee limits are enforced

📁 Files Changed

• contracts/src/DigitalAsset.sol - Complete overhaul with platform fees
• contracts/src/MONFT.sol - Removed admin-only minting restrictions
• contracts/src/IDigitalAsset.sol - Updated interface with platform fee functions
• ERCs/ERCS/erc-7743.md - Comprehensive specification update
• ERCs/assets/erc-7743/DigitalAsset.sol - Reference implementation updated
• ERCs/assets/erc-7743/MONFT.sol - Reference implementation updated
• ERCs/assets/erc-7743/IDigitalAsset.sol - Reference interface updated

🎯 Migration Impact

This is a breaking change that transforms ERC-7743 from a centralized admin-controlled system to a fully decentralized direct author minting system with sustainable platform monetization. The changes make the standard production-ready for real-world deployment while maintaining creator-friendly policies.

Previous implementations will need to migrate to support:

1. Direct author minting instead of admin minting
2. Platform fee handling in transfer logic
3. Updated interface definitions

This update makes ERC-7743 secure (no admin keys), decentralized (direct author control), sustainable (platform fees), and creator-friendly (provider exemptions) - a complete solution for digital asset tokenization platforms.

[eip-review-bot]

File ERCS/erc-7743.md

Requires 2 more reviewers from @g11tech, @lightclient, @SamWilsn, @xinbenlv

[SamWilsn]

ERC-7743 is final and may no longer be modified. You may open a new proposal, with a different number, if you'd like to continue development.