Non-fungible tokens (NFTs) are evolving beyond static images and collectibles. They are becoming dynamic assets with the potential to act as powerful tools within the blockchain ecosystem.
Token Bound Accounts (TBAs) unlock this potential, transforming our Non-fungible tokens(NFTs) into Smart Accounts.

From JPEGs ==> NFTs ==> Accounts

NFTs are now much more than something you buy and sell.
They can be an on-chain medium which transactions go through, and we can do much more with them:-

• NFTs can be more than just assets that sit in our wallets.
• They can own assets.
• They can be used to change state and take action.
• They can be used to claim assets like airdrops.
• They can serve as an on-chain identity.

What are Token Bound Accounts (TBAs)?

A Tokenbound Account is your NFT bound to an account.
Imagine your NFT as a regular account (EOA), that can execute transactions, hold assets (ERC20, ERC1155, ERC721s etc) and interact with decentralized applications (dApps).

Thanks to the backward compatibility of ERC6551, Tokenbound accounts can be created from not just new NFTs, but existing NFTs too.

Where it all started

We can’t discuss TBAs without mentioning ERC-6551, the proposed Standard for creating Token Bound Accounts.

While ERC-6551 laid the groundwork, Starknet, a Layer-2 scaling solution for Ethereum, presented a unique challenge due to its different architecture. To address this, our team at Horus Labs proposed SNIP-14, a standard inspired by ERC-6551 but specifically designed for Starknet. This allows developers to leverage TBAs on Ethereum (L1) and Starknet.

Note that this proposer requires no changes or modifications to the original ERC-721 Token Standard. It’s simply your NFT, but with superpowers! Cool, right?

How it Works

ERC-6551 defines a canonical registry responsible for deploying smart accounts for an NFT.
The account that owns the NFT a.k.a (“parent account”), would automatically have control over the assets in the deployed TBA and is solely responsible for executing transactions through the TBA.

How do I Transfrom my NFT to a TBA?

Our team at Horus Labs created an explorer that can be used to deploy Tokenbound Accounts for your existing NFTs and track, manage, and interact with them.

Walkthrough Demo:

This guide will walk you through deploying and activating a Token Bound Account (TBA) on Starknet.

Here’s a link to the explorer.

Step 1 ==> Connect your wallet to view your existing NFTs:

Connect your Argent/Braavos wallet, then click on the “My NFTs” button. This will take you to a page displaying all the NFTs associated with your account.

Step 2 ==> Bringing your NFT to Life:

The process of activating a TBA for your NFT is quite straightforward.

1. Select the NFT you wish to transform into a TBA:
   A tokenbound account address has been precalculated for your NFT, but you’ll need to deploy the account to use it.
2. Click on the “Deploy Account” button: This deploys the tokenbound account for your NFT.

Step 3 ==> What happens during and after deployment:

When we click on the “Deploy Account” button, we interact with a function called create_account. This function requires specific inputs and generates an output indicating the operation’s success.

1. Inputs:

• implementation_hash: This represents the class hash of the account to be deployed.
• token_contract: The contract address of our NFT.
• token_id: The token ID of our NFT.
• salt: This random value enforces the uniqueness of our TBA’s address. It ensures that multiple TBAs can be deployed for the same NFT.

2. Output:

call create_account(`implementation_hash,` token_contract, token_id, salt) -> 0x161d…3fa6

• The function returns a unique address for our newly created TBA, typically represented by a long string of hexadecimal characters (e.g., 0x161d…3fa6). This address acts as the public identifier for our NFT wallet and is crucial for interacting with other accounts and dApps.

Funding your Token Bound Accounts (TBAs):

Your Token Bound Account can hold any asset of your choice. Thanks to addresses being precalculated, your accounts can be funded even when not deployed.

To fund your Token Bound Account:

1. Locate Your TBA Address: Like any other wallet, your TBA has a unique address. You’ll typically find this address displayed within the platform you used to create the TBA.
2. Transferring Assets: With the TBA address in hand, you can initiate a transfer of any compatible asset from your existing wallet (like Braavos or Argent). This could include fungible tokens (ERC-20 tokens, stablecoins) or other NFTs.

Important Note: Avoid sending the NFT that controls the Token Bound Account (TBA) back to the TBA itself. This will avoid creating an ownership loop where the TBA owns itself.

Real-World and Practical Use Cases of Token Bound Accounts (TBAs)

Token Bound Accounts (TBAs) represent a significant innovation in the blockchain space.
Let’s delve into some real-life and practical use cases that showcase the potential of TBAs:

1. Enhanced Gaming Experiences:

• In-game Inventories and Characters: TBAs can function as backpacks or inventories for in-game characters. Players can hold various NFT items like weapons, armor, or cosmetic accessories within their TBA. This enables a more immersive experience where characters can collect and manage their digital belongings.
• Evolving Characters: TBAs can facilitate the development of characters that grow and evolve. By acquiring specific NFTs and storing them within the TBA, characters can unlock new abilities or appearances. This creates a deeper connection between players and their in-game assets.
• Playable NFTs: TBAs pave the way for the creation of “network playable characters” (NPCs) in the metaverse and gaming platforms. These NFTs can be assigned TBAs, allowing them to interact with the environment, hold assets, and perform on-chain actions, further enriching the virtual world.

2. Streamlined NFT Management:

• Consolidated Ownership: TBAs can act as central hubs for managing NFT collections. Users can hold multiple NFTs within a single TBA, simplifying organization and tracking of their digital assets. This eliminates the need to juggle numerous wallet addresses.
• Conditional Access and Permissions: TBAs can be programmed to grant specific permissions or access based on the NFTs they hold. For example, the owner of a TBA containing a specific “warrior NFT” would be granted access to a special PvP (player-versus-player) arena within the game.

3. Decentralized Applications (dApps) and DAOs:

• Membership Management: TBAs can be used for membership management within DAOs (Decentralized Autonomous Organizations). Owning a specific DAO governance token within your TBA could automatically grant voting rights and access to exclusive DAO features.
• Conditional dApp Access: dApps can leverage TBAs to control user access based on specific NFT ownership. This allows for tiered access systems within applications, rewarding users who hold specific NFTs with additional features or functionalities.
• Streamlined On-chain Interactions: TBAs can simplify interactions with dApps. Users can streamline complex on-chain actions without managing multiple wallet addresses or tokens by holding the necessary NFTs or fungible tokens within the TBA.

5. Real-World Asset Tokenization:

• Securely Storing Fractional Ownership: TBAs can be used to manage the ownership of tokenized real-world assets. NFTs can represent fractional ownership of real estate or artwork, and the corresponding TBAs can securely hold these NFTs, ensuring transparency and security in ownership management.
• Dynamic Access Control: TBAs can be programmed to grant access rights based on the NFTs they hold. For instance, owning a fractional ownership NFT within a TBA could grant access to a property or exclusive events related to the underlying asset.

This is just the beginning!

As the TBA ecosystem evolves, we can expect even more groundbreaking applications to emerge. However, this progress hinges on a collaborative effort from the blockchain community. We invite developers, entrepreneurs, and enthusiasts to join the movement:

• Developers: Explore the potential of TBAs by building innovative applications that leverage their unique capabilities.
• Entrepreneurs: Identify real-world problems TBAs can solve and develop solutions that empower users and reshape industries.
• Enthusiasts: Spread awareness about TBAs and contribute to the ongoing conversation by sharing your ideas and feedback.

To foster and explore innovative ideas, we are organizing the Token Bound Hackathon, with a total prize pool of 15k$ to be won! Join the working group for more information on the hackathon.

By working together, we can unlock TBAs’ full potential and usher in a new era of secure, seamless, and user-friendly blockchain interactions. Let’s join forces and build a future where TBAs become a cornerstone of a thriving and interconnected blockchain ecosystem.

Additional Resources

• Tokenbound Hackathon — $15000 pool price.
• ERC6551 — Official EIP Proposal.
• SNIP14 — Official SNIP Proposal.
• Tokenbound Explorer UI.
• Documentation — Official Starknet Tokenbound.