SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI and Omni Foundation could help NFTs across the Ethereum ecosystem transition to scaling solutions and rollups.
The two have proposed a new token standard, xERC-721, with a “code minimized” upgrade to the current standard.
SEI price declined nearly 11% in the past week and nearly 1% on the day.

Sei Labs and Omni Foundation have proposed a new token standard, xERC-721, to facilitate the movement of NFTs across Ethereum chains. Projects to scale the Ethereum blockchain and lower the transaction cost – like Layer 2 scaling solutions and rollups – have flooded the ecosystem, but this new proposal intends to address the fragmentation of NFTs as these tokens exist only on the chain they are minted.

Also read: Ethereum price risks decline as increasing exchange supply raises chances of profit taking

NFTs to move across chains in the Ethereum ecosystem

Addressing a problem faced by NFT holders, SEI and Omni Foundation have proposed a new token standard, xERC-721, that upgrades the existing ERC-721 tokens in a “code minimized” manner, according to a blog post from SEI published on Thursday. This would allow NFTs to move across chains in the Ethereum ecosystem and help NFT holders get unstuck from the confines of a single domain.

Sei is happy to announce our role alongside @OmniFDN in the development of EIP-7611.

This is a new EIP which creates an open token standard for unifying NFT liquidity across the growing Ethereum ecosystem.https://t.co/LR1HCcmuef
— Sei (@SeiNetwork) February 22, 2024

The benefits of the proposal include secure movement across domains without a third party lock-in, a process that currently increases the risk for the NFT owner. Existing NFT collections can choose to upgrade to the new standard through the deployment of a new portal contract and make their tokens accessible to the rest of the ecosystem and its users.

NFT collections and their holders have been plagued with liquidity issues as these tokens typically represent a small set of holders, confined to the chain where the collection was minted. The proposal would allow for interoperability and compatibility with other chains, unifying a previously fragmented set of NFT projects.

SEI backed the development of this new standard as there is a recent increase in NFT activity on the chain, it said. Bringing together creators and NFT communities could boost activity on the SEI chain.

SEI price is down 1% on the day. The token yielded nearly 11% losses for holders in the past week. The recent proposal has failed to positively influence the asset’s price, which stood at $0.8272 at the time of writing.

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