ERC-6960 is a new token standard designed by the team at Polytrade. It’s a unique way to represent Real World Assets (RWAs) on the blockchain and support fractional ownership. This means that it can break down a single asset into smaller parts, each owned by a different person.

The dual-layer token combines the functionalities of ERC-20, ERC-721, and ERC-1155 while adding a classification layer that uses mainId as the main asset type identifier and subId as the unique attributes or variations of the main asset. The proposed token aims to offer more granularity in token management, facilitating a well-organized token ecosystem and simplifying the process of tracking tokens within a contract. This standard is particularly useful for tokenizing and enabling the fractional ownership of Real World Assets (RWAs). It also allows for efficient and flexible management of both fungible and non-fungible assets.

The ERC-1155 standard has experienced considerable adoption within the Ethereum ecosystem; however, its design exhibits constraints when handling tokens with multiple classifications, particularly in relation to Real World Assets (RWAs) and fractionalization of assets. This EIP strives to overcome this limitation by proposing a token standard incorporating a dual-layer classification system, allowing for enhanced organization and management of tokens, especially in situations where additional sub-categorization of token types is necessary.

The key features of ERC-6960 are:

Dual-layer classification system.

Enhanced organization and management of tokens.

Facilitates fractional ownership of Real World Assets (RWAs).

Efficient and flexible management of both fungible and non-fungible assets.

The ERC-6960 standard is still in the draft stage and is not yet finalized. However, it is an exciting development in the world of DeFi and blockchain technology. It will be interesting to see how this new standard is adopted and implemented in the coming years.

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