v1: TinySPL's cNFT Standard
Last updated
Last updated
Traditionally, token balances are stored on-chain. Keeping this data on-chain takes up space, so Solana charges a "rent" fee of ~0.002 SOL for the storage. i.e. you paid ~0.002 SOL to store information on how much WIF your wallet owns on-chain.
However, if SOL continues to increase (and we believe it will), it will cost more and more to store data directly on chain. This makes it less economical to do mass airdrops, and also inefficient for data-intensive applications like AI and DePIN on Solana.
This is where state compression comes in - by reducing the amount of data needed to be stored in an account to represent and hold data, thus incurring way less rent.
One of the first and most popular application of state compression are compressed NFTs (cNFTs). By reducing the amount of data needed to be stored in an account to represent and hold an NFT, it has brought costs of airdropping billions of NFTs down to almost nothing.
TinySPL builds on top of cNFTs to build compressed assets, by utilizing compressed NFTs to represent token balances. This innovation is a game-changer, enhancing token functionality, efficiency, and liquidity for Solana.
In January 2024, we debuted our first TinySPL token - Deez Nuts ($NUTS) - which is not only the first rent-free token on Solana, but embodies unique tradeability as both a fungible token and an NFT, enabling higher versatility in transactions.
NUTS could be traded as a NFT on NFT marketplaces like Tensor, Magic Eden and OKX, and also on major trading venues like Raydium and Jupiter.
With NUTS, token balances can also be divided into multiple parts (or combined), with each part existing as an individual NFT, allowing better organisation of our wallet and token balances.
For example, If we wanted to send just one token to our friend, we could split our token balance and then send out that single token via our wallet!
What truly sets the TinySPL standard apart though is its unmatched fungibility in the Hybrid DeFi space. This innovation was most effectively showcased in our second NFT collection LIGMA, which we launched in Mar 2024.
TinySPL supports true NFT fractionalization, where each NFT fraction exists as its own individual fungible token. Unlike other protocols like ERC404, TinySPL can represent any token amount as a single NFT, be it as little as 5 LIGMA or as many as 4096 LIGMA.
With TinySPL, we have created a cNFT standard that not just allow devs to efficiently build and scale anything they want directly on Solana with the ability to compress on-chain data to get 10,000x improvement, but also providing the capability to innovate new use cases and applications.
