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Technical Deep-Dive – ERC-1155 Framework

ERC-1155 Tokenized Equity Framework

Your ERC-1155-based tokenized equity framework for the 3Sixty6 Media Rolling Raise is a modern, scalable, and compliant approach to continuous capital formation. It aligns well with your goals of low administrative overhead, dynamic FMV adjustments, and global compliance.

Below is a tailored breakdown of how ERC-1155 fits your model, along with actionable recommendations to implement it effectively.

Why ERC-1155 is the Right Choice for Your Rolling Raise

ERC-1155 provides the perfect balance of efficiency, compliance, and flexibility for tokenized equity

1. Alignment with Your Whitepaper Goals

Continuous Fundraising

Supports lazy minting (NFTs minted on purchase), enabling open-ended sales without gas bloat.

Transparent Ownership

On-chain ledger + off-chain cap table = auditable, tamper-proof records.

Low Administrative Overhead

Batch minting/transfers reduce gas costs; ERC-1155's efficiency lowers per-transaction fees.

Legally Enforceable NFTs

Metadata can embed Subscription Agreement hashes, lockup terms, and transfer restrictions.

Dynamic FMV Adjustments

Upgradeable metadata allows real-time updates to valuation, round details, and corporate docs.

Early Liquidity Pathways

Post-lockup, NFTs can be subdivided into ERC-20 penny shares or transferred (with restrictions).

Global Compliance

Whitelist-based access enforces Reg D/Reg S rules; metadata links to legal documents.

Key Features of Your ERC-1155 Implementation

A dual-token architecture combining compliance with liquidity

1. NFT Equity Units (1 NFT = 1,000 Shares)

Smart Contract: Equity1155.sol

Lazy Minting

NFTs are minted only upon purchase, saving gas.

Metadata Standard

{
  "name": "3Sixty6 Media NFT Equity Unit (Round 1)",
  "description": "Represents 1,000 common shares at $0.01/share (FMV v1.0)",
  "attributes": [
    {"trait_type": "Round", "value": "Rolling Raise v1.0"},
    {"trait_type": "FMV", "value": "$0.01/share"},
    {"trait_type": "Lockup Expiration", "value": "2027-12-31"},
    {"trait_type": "Transfer Restrictions", "value": "Whitelist + 5% fee"},
    {"trait_type": "Subscription Agreement", "value": "IPFS://QmXoypiz..."},
    {"trait_type": "Holder Type", "value": "Accredited Investor (Reg D 506(c))"}
  ],
  "legal": {
    "bylaws": "IPFS://QmBylaws...",
    "kyc_aml": "Verified by Sumsub",
    "whitelist_status": "Approved"
  }
}

Transfer Logic

  • Only allowed to whitelisted wallets
  • 5–20% corporate transfer fee (collected in CompanyTreasuryWallet)
  • Lockup enforcement (e.g., 2-year cliff)

2. ERC-20 Penny Shares (Post-Lockup)

Smart Contract: PennyShareERC20.sol

Conversion

1 NFT → 1,000 ERC-20 shares (burn-and-mint mechanism).

Restrictions

Inherits all transfer/whitelist rules from the parent NFT.

3. Whitelist & Compliance System

Smart Contract: WhitelistRegistry.sol

Requirements

  • • KYC/AML verification (e.g., Sumsub)
  • • Signed Subscription Agreement (hash stored in metadata)
  • • $20 whitelist fee (waived for employees/customers)

Functions

function addToWhitelist(address _investor, string memory _kycHash) public onlyOwner {
  require(!whitelisted[_investor], "Already whitelisted");
  whitelisted[_investor] = true;
  kycRecords[_investor] = _kycHash;
  emit Whitelisted(_investor);
}

function isWhitelisted(address _investor) public view returns (bool) {
  return whitelisted[_investor];
}

4. Dynamic FMV Adjustments

Off-Chain Oracle: Use Chainlink to push FMV updates to metadata.

Example: If revenue KPIs are hit, FMV updates from $0.01 → $0.16/share. New NFTs minted reflect the current FMV; existing holders retain their entry price.

5. Transfer Mechanics & Fees

Smart Contract: TransferFeeController.sol

Fee Logic

function _beforeTokenTransfer(
  address operator,
  address from,
  address to,
  uint256[] memory ids,
  uint256[] memory amounts,
  bytes memory data
) internal override {
  require(whitelistRegistry.isWhitelisted(to), "Recipient not whitelisted");
  uint256 fee = (amounts[0] * transferFee) / 100; // 5-20%
  payable(treasuryWallet).transfer(fee);
}

Implementation Roadmap

Phased deployment to minimize risk and ensure compliance

1

Phase 1: Smart Contract Development

  • • Deploy Core Contracts
  • • Integrate Metadata Service
  • • Test on Polygon Testnet
2

Phase 2: Compliance & KYC

  • • Partner with KYC Provider
  • • Automate Whitelisting
  • • Legal Review
3

Phase 3: Investor Onboarding Flow

  • • Frontend (Next.js + MetaMask)
  • • Payments (Stripe + Coinbase)
  • • Dashboard (Dune Analytics)
4

Phase 4: Launch & Monitoring

  • • Soft Launch
  • • Monitor Compliance
  • • Adjust FMV

Risks & Mitigations

Proactive risk management for tokenized equity implementation

Regulatory Scrutiny

SEC or state regulators could challenge tokenized equity structure.

Mitigation:

Work with a securities lawyer to ensure Reg D/Reg S compliance; embed legal docs in metadata.

Smart Contract Bugs

Vulnerabilities in smart contract code could lead to unauthorized transfers.

Mitigation:

Audit contracts with CertiK or OpenZeppelin; use testnets for thorough testing.

Low Liquidity

Limited secondary market could reduce perceived value.

Mitigation:

Highlight post-lockup subdivision and secondary market options in marketing.

Gas Cost Spikes

High network fees could impact user experience.

Mitigation:

Deploy on Polygon PoS (low fees) and use lazy minting.

KYC/AML Fraud

Fake identities could bypass compliance requirements.

Mitigation:

Use Sumsub/Onfido for identity verification; manual review for large investments.

FMV Disputes

Investors may challenge valuation methodology.

Mitigation:

Use independent valuations and transparent KPIs for adjustments.

Why Polygon?

Low Fees: ~$0.01 per transaction (vs. $50+ on Ethereum).
Scalability: Handles thousands of minting/transfer transactions.
EVM Compatible: Works with MetaMask, OpenZeppelin, and ERC-1155.
Adoption: Used by Reddit, Starbucks, and Disney for NFTs.

Example Smart Contract Snippets

Starting point for your ERC-1155 implementation

1. Equity1155.sol (Core NFT)

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;
import "@openzeppelin/contracts/token/ERC1155/ERC1155.sol";
import "@openzeppelin/contracts/access/Ownable.sol";

contract Equity1155 is ERC1155, Ownable {
  address public whitelistRegistry;
  address public treasuryWallet;
  uint256 public transferFee = 5; // 5%

  constructor(address _whitelistRegistry, address _treasuryWallet)
    ERC1155("https://ipfs.io/ipfs/{id}.json") {
    whitelistRegistry = _whitelistRegistry;
    treasuryWallet = _treasuryWallet;
  }

  function mintEquityUnit(address to, uint256 roundId, string memory metadataURI) public onlyOwner {
    uint256 tokenId = roundId;
    _mint(to, tokenId, 1, "");
    _setURI(tokenId, metadataURI);
  }

  function _beforeTokenTransfer(
    address operator,
    address from,
    address to,
    uint256[] memory ids,
    uint256[] memory amounts,
    bytes memory data
  ) internal override {
    require(IWhitelistRegistry(whitelistRegistry).isWhitelisted(to), "Recipient not whitelisted");
    uint256 fee = (amounts[0] * transferFee) / 100;
    payable(treasuryWallet).transfer(fee);
  }
}

interface IWhitelistRegistry {
  function isWhitelisted(address investor) external view returns (bool);
}

2. WhitelistRegistry.sol

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;
import "@openzeppelin/contracts/access/Ownable.sol";

contract WhitelistRegistry is Ownable {
  mapping(address => bool) public whitelisted;
  mapping(address => string) public kycRecords;

  function addToWhitelist(address investor, string memory kycHash) public onlyOwner {
    whitelisted[investor] = true;
    kycRecords[investor] = kycHash;
  }

  function isWhitelisted(address investor) public view returns (bool) {
    return whitelisted[investor];
  }
}

Next Steps for You

Actionable recommendations to implement your ERC-1155 framework

Finalize Smart Contracts

Use the snippets above as a starting point. Add FMV update logic (Chainlink oracle) and lockup enforcement.

Set Up KYC/AML

Integrate Sumsub or Onfido with WhitelistRegistry.sol.

Deploy on Polygon Testnet

Test minting, transfers, and fee collection.

Build the Investor Dashboard

Use Next.js + MetaMask SDK for wallet connection. Display FMV, lockup status, and transfer history.

Legal Review

Ensure Subscription Agreement and metadata comply with Reg D/Reg CF.