Nervos community project Portal Wallet issues COFFEE token using SUDT, the new token standard of Nervos Network
To celebrate the mainnet release of the Simple User Defined Token (SUDT), the new token standard of Nervos Network, Portal Wallet is launching COFFEE to bring tokenized coffee to the Nervos community. Rather than pay in cash or credit, users will be able to redeem COFFEE tokens for coffee at Starbucks locations throughout China.
In honor of Nervos’ one-year mainnet anniversary today, November 16th, the Portal Wallet team will mint and airdrop a limited supply of 1,116 COFFEE tokens at conferences, events, and meetups across China through the end of the year. Although COFFEE tokens may be issued in other regions at a later date, there are no immediate plans for a secondary issuance so these celebratory airdrops offer the Chinese blockchain community a unique opportunity to acquire limited release COFFEE tokens.
How COFFEE Works
Using the Nervos SUDT implementation, the Portal Wallet team created COFFEE as a fully-functional example of a tokenized asset that can be used in daily life, with each COFFEE token holding a fixed conversion value of one cup of Starbucks coffee.
Currently, COFFEE tokens can only be acquired via airdrop campaigns coordinated by the Nervos community. Once received, users can access them through Portal Wallet, a crypto wallet built on the Nervos CKB that runs in any Ethereum wallet’s dApp browser.
Using the Portal Wallet dApp within popular crypto wallets like imToken, MetaMask, BitPie, and ABC Wallet, COFFEE holders can get coffee at any mobile wallet-enabled Starbucks in China with just a few taps. Users can simply redeem a COFFEE token for a Starbucks voucher right from the app and scan the provided barcode at the counter for a free cup of coffee.
COFFEE payments are enabled via an integration between Portal Wallet and a third-party loyalty rewards platform and does not represent a direct partnership with Starbucks. Though the token conversion rate is fixed, the token itself could fluctuate in value on peer-to-peer exchanges in the future.
Frank Lou, founder of Lay2 and developer of Portal Wallet, said,
“Our team has been deeply vested in the Nervos ecosystem since its mainnet launch last year so we’re thrilled to welcome the new SUDT standard. We created COFFEE in homage to the growing Nervos community, but it also showcases a real-world use case for tokens deployed on CKB.”
To stay updated on Nervos community events for a chance to receive COFFEE airdrops, join us on Telegram.
SUDT for Developers
While COFFEE is the first token launched using the new SUDT standard, any developer or dApp building on Nervos can now launch their own tokenized assets anchored by Common Knowledge Base (CKB), the permissionless Layer 1 blockchain of Nervos Network.
The SUDT standard enables the use of tokens on the Nervos platform. The SUDT (RFC0025) has gone through an extensive vetting process and is the first script of its kind to be officially recognized as standards by Nervos.
The SUDT standard is a cornerstone addition that takes Nervos from a single asset platform to a multi-asset platform. This standard enables users to create an unlimited number of tokens on the platform in seconds using any SUDT-enabled Nervos wallet. Combined with the libraries and tools also being released, developers will now be able to integrate SUDT tokens into dApps much more easily.
Full Ownership of Assets
Token standards are nothing new to the blockchain industry, but Nervos’ unique implementation and capabilities are particularly important for DeFi. The Nervos SUDT standard is the first token standard to incorporate First-Class Assets, an underlying Nervos design principle where the authority of the user takes precedence over everything. The user has total control of their assets, so no one — not even the creator of the token — has the ability to modify or seize user assets. This step forward gives true ownership to digital assets in a way that has not been possible in the past and cannot be achieved by any other platform today.
First-Class Assets have even stronger implications when applied to smart contract security. User authority trumps the authority of the smart contract that governs it. This means that even if a smart contract vulnerability was found, the attacker would still be locked out of the asset itself. This completely mitigates most forms of attacks where smart contracts are in control of user funds.
Sustainability through State Rent
State rent is a topic of ongoing discussion in many blockchain communities as the cost of state storage continues to rise with increasing use cases. Many platforms put this burden on miners but don’t consider how there is no direct incentive or requirement for miners to obey the “rules” and persist all of the data. Other platforms have recognized the issue, but have chosen to burden the developers with the state costs of all of their users.
Nervos’ solution is to have the users pay state rent for their own usage in a way that is both automatic and transparent. This is done through targeted inflation at users who occupy state storage. CKByte tokens must be locked with data persistently, and these locked tokens will lose a very small amount of value over time through inflation. For each individual user, the monthly cost will be insignificant. If this burden was placed on the developer, they would have to directly absorb the costs of all users. Having users pay for their own costs is the most sustainable route for the entire ecosystem.
SUDT and the Future of DeFi
The Nervos team have spent several hours perfecting these standards, ensuring these foundational pieces of the ecosystem were discussed, vetted, refined, and tested thoroughly. The results of this effort are clear. Nervos’ platform is both unique and innovative in a way that has solved many of the existing problems that are holding back DeFi from mass adoption.
Nervos co-founder Kevin Wang said,
“The launch of the SUDT standard is a significant milestone in the progression of DeFi on Nervos. This represents the culmination of months of diligent effort to reimagine what is possible, and push the capabilities of DeFi to the next level.”
As DeFi continues to gain momentum, Nervos is committed to providing nothing short of the best technology for the task — now and in the future. We’re honored to be part of the movement along with so many incredibly bright entrepreneurs who have chosen to go down the path with us.
Want to learn more about SUDTs? Tune in to our upcoming online events:
- SUDT fireside chat with community developer Tannr Allard and senior software engineer Jordan Mack moderated by community manager Matt Quinn on Monday, November 23rd.
- SUDT AMA with Thomas Spofford from developer relations this November. (Stay tuned for the date and time!)
To stay updated on all things Nervos:
Join our community: Discord — Github — Nervos Talk Forum — Twitter
For discussions or questions join the conversation on Discord or check out one of our community Telegram channels: English, Korean, Russian, Japanese, Spanish, Vietnamese and Chinese
COFFEE launches on Nervos to tokenize Starbucks coffee in China was originally published in Nervos Network on Medium, where people are continuing the conversation by highlighting and responding to this story.