Programmable NFTs (pNFT)
Are they the new standard?
On Feb 6th, Metaplex will allow Solana NFT collections to migrate into a programmable asset class, pNFTs. This new pNFT standard presents many opportunities and challenges for the Solana ecosystem
Royalty Enforcement: Under the pNFT standard, project owners are able to decide how their NFTs are used via allow/deny lists. Collections looking to enforce royalties can restrict holders from listing on zero-royalty marketplaces. It's important to note that hard enforcement via allow/deny lists is protocol specific. Meaning, OTC & wallet-to-wallet transfers are not restricted by default. Instead, project owners must specifically create each rule. Making active management of allow/deny lists very important.
Royalty Implications: What does this mean? Project owners have a choice to adopt new pNFT rules or not. If they do: Fewer ownership rights for holders & lower collection volumes due to restrictions imposed. If they don't: Business as usual w/ risk of running outdated standard.
Outside of royalty enforcement, Metaplex took community considerations into account that allows for other rule sets. With pNFT framework, creators can lock/unlock tokens under certain conditions (location, usage, etc.) and impose other creative rules. Creative rules open a new world of possibilities for pNFTs. You can lock a pNFT after it's used to claim merch, limit holders by jurisdiction law, or bind pNFTs in-game.
Project owners can customize rules, or even choose to adopt rules designed by other creators. For example, Metaplex will maintain a rule set to allow/deny marketplaces & protocols enforcing royalties - updated on a weekly basis. Creators can follow others' rules without needing to actively manage themselves (dangerous game?). If projects choose to follow Metaplex's standard royalty enforcement rules, holders' ability to list their pNFTs on a certain platform will be controlled by a third party.
pNFTs will only be compatible with protocols, marketplaces, and wallets that choose to adopt the upgrade. If a user wants to list/unlist a pNFT on a marketplace that hasn't upgraded, it will not work. The same applies to wallet transfers.
Disclaimer: I am not a developer. The purpose of this thread is to breakdown pNFTs at a basic level so most can understand the coming changes. If there are any technical gurus that would like to expand or provide further detail, we encourage you to do so