CTAG

What

Short for "composable tag", it's an ERC-721 NFT representing a tag namespace used within ETS.

Why

CTAGs enable ETS to:

• Guarantee each tag string resolves to a single, definitive token
• Create permanent ownership rights for tag namespaces
• Build complete historical records of tag usage
• Drive value through protocol-wide fee distribution
• Enable consistent tag reuse across all applications
• Record immutable attribution for all tag actions

How

CTAGs are deterministically generated from input tag strings through the ETSToken contract.

1. Tag String Validation

The tokenization process begins with validating the input tag string to ensure it adheres to ETS standards. This includes:

• Starting Character: Must begin with #.
• Allowed Characters: Supports any Unicode character.
• Prohibited Characters:
  • Spaces (0x20).
  • Additional # characters after the first position.
• Length Requirements: Must fall within tagMinStringLength and tagMaxStringLength.

2. CTAG Data Structure

struct Tag {
    address relayer;   // Address of Relayer that facilitates CTAG creation
    address creator;   // Address that initiated CTAG creation
    string display;    // Display version of tag string
    bool premium;      // (deprecated)
    bool reserved;     // (deprecated)
}

3. ID Generation

CTAGs are identified by a unique ID computed from the lowercased tag string:

tagId = uint256(keccak256(bytes(lowercased_tag)));

This means once #Punks is minted, all future inputs like #PuNkS, #punks, and #PUNKS will point to the CTAG with the namespace #punks. This ensures a single NFT for each unique tag namespace.

4. Creating CTAGs

All tag creation in ETS happens through Relayers, which provide the interface between users and the protocol:

1. Direct Tag Creation

• Users submit tag strings via Relayer interface
• Relayer validates and forwards to ETS core
• Creator attribution recorded on-chain
• New CTAGs held by ETS platform
• Enters auction queue based on usage, with active tags released first

2. Creation Through Tagging

• Users submit tagging actions via Relayer
• ETS core checks if tag exists
• If tag is new, core automatically mints CTAG
• Tagger recorded as Creator
• New CTAG associated with Target in Tagging Record

5. Purchasing CTAGs

CTAGs are distributed through a continuous English auction system (see ETS Auction):

1. Initial Holding
   • Upon creation, CTAGs are held by ETS platform
   • Tags accumulate usage metrics while held
   • Most-used tags prioritized for auction release
2. Auction Release
   • Tags released through ETSAuctionHouse contract
   • Multiple concurrent auctions possible (default: 3)
   • 24-hour auction duration with anti-snipe buffer
   • Minimum bid increment of 5%
   • Reserve price in native currency (ETH/MATIC)
3. Bidding Process
   • First bid starts auction timer
   • Late bids extend auction by 15 minutes
   • Highest bidder wins ownership rights
   • Previous bidders automatically refunded
4. Settlement & Transfer
   • Any address can settle ended auctions
   • Winner receives CTAG ownership
   • Proceeds split between platform/creator/relayer
   • New ownership term begins

6. Ownership and Term Length

Ownership terms are managed through the ETSToken contract, creating a renewable ownership model that ensures active stewardship of CTAGs.

• Ownership term length is defined by ownershipTermLength protocol parameter
• Any address can renew a tag via renewTag()
• Term clock starts at transfer or last renewal timestamp
• Expired tags can be recycled by any address via recycleTag()
• Recycling transfers tag back to platform address
• Platform-held tags have no active term clock
• Term expiry checked via tagOwnershipTermExpired()
• Recycled tags become available for new auctions

7. Tag Reuse and Composability

Once a CTAG is minted, any future use of the same tag string when creating Tagging Records will reference the existing CTAG. This ensures:

• Consistent tag reuse across the protocol.
• Clear attribution and provenance of tag origination.
• Audit trail for tagging actions.
• Monetization through fees and auctions.

Tokenomics

CTAGs generate revenue through two channels:

1. Per-Tag Fee in Tagging Records
   • ETS charges a micro-fee for each CTAG used in a tagging record.
   • Fee distribution:
     • Relayer: For originating the CTAG.
     • Owner: As a return on their investment in the tag.
     • Protocol: To fund ongoing operations and development.

2. Auction Proceeds
   • When a CTAG is sold at auction, proceeds are distributed among:
     • Relayer: For originating the CTAG.
     • Creator: For their initial contribution to the tag ecosystem.
     • Protocol: To support the protocol and incentivize adoption.

Revenue Distribution Table

The revenue distribution for fees and auction proceeds is governed by ETS-defined percentages.

(Note: Percentages are preliminary and subject to change.)