Have you ever been faced with incompetent NFT creators or rug pulls in this space? Well, this problem might soon be resolved as blockchain developers have rolled out a new token standard ERC721R that changes the way how transactions are made.

According to the project's description, the update brings refund functionality with both ERC721 and ERC1155 standards. Made by GitHub user Elie (elie222), the feature provides "greater protection for buyers and more legitimacy for creators." Here's how Elie describes the current state of affairs:

The NFT space needs greater accountability. The space faces too many rugpulls and for the health of the NFT ecosystem as a whole we need better mechanisms to prevent these from happening.

The ERC721R on a practical level works in the following way:

  1. When you mint an NFT in an ERC721R collection the funds are held by the smart contract in escrow.
  2. The creators are unable to withdraw the funds till the waiting period has been completed.
  3. During this waiting period, the buyer is able to return their NFT to the smart contract and receive their ether (ETH) back.

Elie notes that even if the creators decide to scam investors, buyers could request their funds back before the waiting period is over. The only thing that buyers need to pay for — are gas costs for the transactions.

Apparently, the new standard already paid off as those projects that integrated ERC721R (e.g. Exodia, Curious Addy’s Trading Club, and CryptoFighters) have already sold out all NFTs, revealed.

Technically speaking the feature might be revolutionary for the space as true blockchains don't have reversal transactions in their traditional meaning. This is because most blockchain networks rely on decentralization and the only way to avoid any chances of data manipulation is to keep all records in the archaically correct order.

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