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describe decentralized nftwatchdao process via smart contract
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marc0olo committed Feb 5, 2024
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19 changes: 12 additions & 7 deletions README.md
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# NFT Watch DAO

NFT Watch DAO was launched in November of 2021 by various members in the [Proton](https://proton.org) community. It is a self-organized initiative to detect scams and prevent other community members from buying fraudulent NFTs. Initially, all reports and judgements about different collections have been handled in the [official Telegram group](https://t.me/protonnftwatch).
NFT Watch DAO was launched in November of 2021 by various members in the [XPR Network](https://xprnetwork.org) community. It is a self-organized initiative to detect scams and prevent other community members from buying fraudulent NFTs.

At the end of September 2022, The team of [Soon.Market](https://soon.market) received a [developer grant](https://www.proton.org/wps-developer-grants) by Proton to build a proposed application which supports this effort.
Initially, all reports and judgements about different collections have been handled in the [official Telegram group](https://t.me/nftwatchdao) only. Marketplaces had to keep track of the activities of NFT Watch DAO and manually add collections to their blacklist.

In November 2022, a scammer was able to trick some community members and hosted different fake auctions for the [Proton DEX Keys](https://soon.market/collections/353512453544) which provide lifetime fee-less trading on the new Proton DEX. The Soon.Market team immediately took action and announced to [fight the scammers](https://medium.com/soonmarket/fighting-the-scammers-announcing-whitelisting-governed-by-proton-nft-watch-6dca0cacbfed) by introducing shielded NFT collections earlier than originally planned.
In November 2022, a scammer was able to trick some community members and hosted different fake auctions for the [Proton DEX Keys](https://soon.market/collections/353512453544) which provide lifetime fee-less trading on the Proton DEX which is nowadays known as [Metal X](https://metalx.com). The team behind [Soon.Market](https://soon.market) immediately took action and announced to [fight the scammers](https://medium.com/soonmarket/fighting-the-scammers-announcing-whitelisting-governed-by-proton-nft-watch-6dca0cacbfed) by introducing shielded NFT collections with the help of NFT Watch DAO.

Currently, the shielding and blacklisting process is governed in the official Soon.Market [Discord](https://discord.gg/KtVVaYy6b3).
Since February 2024, NFT Watch DAO processes are governed via [Smart Contract](./docs/smart-contract.md) and can be embraced by any NFT marketplace.

This repository contains content that explains in detail how NFT Watch is governed. Additionally, various diagrams within the repository serve as a basis of discussion before the decentralized application for NFT Watch will be developed.
## Learn More About
- [Blacklisting](./docs/blacklisting.md)
- [Shielding](./docs/shielding.md)
- [Smart Contract](./docs/smart-contract.md)

Don't forget to check the [FAQ](./docs/faq.md)!

## Get Involved / Ask Questions!

- [Discord](https://discord.gg/KtVVaYy6b3) (`#nft-watch-discussion`)
- [Telegram](https://t.me/protonnftwatch)
- [Telegram](https://t.me/nftwatchdao)
- [Twitter / X.com](https://x.com/NftWatchDAO)
37 changes: 10 additions & 27 deletions docs/blacklisting.md
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# Blacklisting

In general, all NFT collections that violate the [Code of Conduct](./code-of-conduct.md) are considered to be blacklisted.

## How does the blacklisting process look like?

### 1. Report

Any community member can report an NFT collection that potentially violates the [Code of Conduct](./code-of-conduct.md) by reporting it in the `#🚩︱blacklist-report ` channel on the Soon.Market [Discord](https://discord.gg/KtVVaYy6b3).

### 2.1 Guard Check

A [Guard](./roles.md#guard) will perform a check on the reported NFT collection:

- If the NFT collection is a clear rip-off, it [Guards](./roles.md#guard) will put the NFT collection on the blacklist.
- If the NFT collection is assumed to be a knock-off, a Yellow Tier Vote will be opened by the [Guards](./roles.md#guard) to decide whether the NFT collection will be blacklisted or not.
- If no violation is detected, the information will be announced and no action will be taken.

### 2.2 Yellow Tier Vote (if required)
Any community member can report an NFT collection that potentially violates the [Code of Conduct](./code-of-conduct.md) by calling the [`report`](https://explorer.xprnetwork.org/account/nftwatchdao?loadContract=true&tab=Actions&account=nftwatchdao&scope=nftwatchdao&limit=100&table=globals&action=report)-action on the [Smart Contract](./smart-contract.md#public). This can be done directly via the explorer interface or via some independent UI, e.g. the interface of an NFT marketplace that utilizes NFT Watch DAO.

If conflicts with NFT collections such as IP issues or other controversal grey area issues are assumed, a Yellow Tier Vote will be opened. The NFT Watch DAO [Voters](./roles.md#voter) will determine whether the NFT collection should will be blacklisted or not.
### 2. Guard Review

**Example:**
One of the [Guards](./guards.md) will perform a check on the reported NFT collection:

1. A knock-off from an existing NFT collection on another blockchain is assumed.
1. Before blacklisting the NFT collection, a Yellor Tier Vote will be opened by the [Guards](./roles.md#guard).
1. The [Voters](./roles.md#voter) state their opinion about the case and take the decision which will be applied.
- If the NFT collection is a clear rip-off, [Guards](./guards.md) will confirm to put the NFT collection on the blacklist.
- If the NFT collection is assumed to be a knock-off, [Guards](./guards.md) will try to reach out to the creator or the team behind an NFT collection before taking a decision. This applies for NFT collections where IP issues or other controversal grey area issues are assumed.
- If no violation is detected, the report will be rejected by and no action will be taken.

[Learn more about knock-offs](faq.md#what-is-the-difference-between-copy-paste-scams-and-knock-off-assumptions-why-are-they-treated-differently-how-does-nft-watch-dao-make-the-determination) in the FAQ.

*Note:*
Learn more about knock-offs in the [FAQ](./faq.md#what-is-the-difference-between-copy-paste-scams-and-knock-off-assumptions-why-are-they-treated-differently-how-does-nft-watch-dao-make-the-determination).

- *If the Yellow Tier Vote doesn't receive the required participation rate, nothing happens and the NFT collection can be proposed to get shielded again after 1 month.*
- *No matter about the outcome of the Yellow Tier Vote, the NFT collection will receive a Yellow Tier Flag from [Guards](./roles.md#guard) with a text that describes the assumed IP issue or other grey area issue.*
- *Currently, the Yellow Tier Vote is anonymous, open for 1 week and its result is based on majority of at least 21 participants. In case there are less than 21 participants, the NFT collection won't be blacklisted.*
- *Yellow Tier Votes are providing the NFT Watch DAO benchmarks of what the community deams acceptable.*

### 3. Blacklisting
### 3. Blacklisting / Rejection

In case off a clear rip-off (determined by Guards) or a knock-off / other grey area issue (confirmed by Voters), the NFT collection will be added to the blacklist.
- In case of blacklisting, a new entry will be added to the [`blacklist`](https://explorer.xprnetwork.org/account/nftwatchdao?loadContract=true&tab=Tables&account=nftwatchdao&scope=nftwatchdao&limit=100&table=blacklist)-table and the contract will log this action.
- In case of rejection, the report will be deleted and the rejection will only be logged by the contract.
3 changes: 1 addition & 2 deletions docs/code-of-conduct.md
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- Public Domain media
- NFT Collections must NOT be launched on multiple blockchains if they use identical NFTs.
- All NFT collections must be reasonably respectful. This includes, but is not limited to; explicit pornography, illegal activities, implied threats, racist themes, or any other overtly offensive materials.
- Any type of revenue stream generated from NFT collections must be documented and properly executed.
- Phishing schemes are strictly prohibited.

## How to detect violations?
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## Violation detected?

If an NFT collection violates this Code of Conduct, every [Scout](./roles.md#scout) is encouraged to report the NFT collection and provide adequate evidence.
If an NFT collection violates this Code of Conduct, anybody is encouraged to report the NFT collection and provide adequate evidence.
112 changes: 0 additions & 112 deletions docs/decentralization.md

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2 changes: 1 addition & 1 deletion docs/disclaimer.md
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# Disclaimer

- NFT Watch DAO is an independent community initiative not affiliated with a specific platform. All resources are for informational purposes only and each marketplace can decide to consume the information about shielded/whitelisted and blacklisted NFT collections or not.
- NFT Watch DAO is an independent community initiative not affiliated with a specific platform. All resources are for informational purposes only and each marketplace can decide to consume the information about shielded and blacklisted NFT collections or not.
- NFT Watch DAO is not responsible for any claims regarding the legitimacy of NFT collections and/or artists.
- NFT Watch DAO will not request a license proof of generative art creators that use different AI tools for now. This is a controversal topic because creators using AI tools often want to hide their prompts from the public and delete the jobs after generating the art.
- NFT Watch DAO primarily focuses on definite scams as well as copyright infringements. Wash trading scams and wallet chasing will be handled by the support team of the marketplace you are using. Please relay your questions and concerns about this matter to the respective marketplace.
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