Creators and IP holders need some tools to help them realize their business models on the blockchain. Sui Kiosk, as a primitive on Sui, can meet this demand by providing creators with dynamic options to set conditions for completing transactions in any transaction scenario.
This article will introduce why Sui Kiosk should be used in SuiFrens and how creators and market operators can use it to trade digital assets on Sui.
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https://kiosk.page/what-is-sui-kiosk.html
What is Sui Kiosk?
You may be familiar with a certain type of kiosk, such as a newsstand in Paris (selling various newspapers and magazines) or a small booth in a tourist shopping area (selling T-shirts and other local souvenirs). The common feature of these kiosks is that they sell goods and publicly display them for passers-by to browse and interact with. Sui Kiosk is the digital version of these kiosks, except that it offers digital assets and collectibles (i.e., NFTs) instead of physical goods.
Photo taken by James Handlon in Budapest
Sui Kiosk addresses the problem of providing business models in a decentralized environment. By creating and placing assets in Sui Kiosk, creators can define transfer policies and rules that will govern future ownership, market sales, and asset management.
Policies and rules controlled by creators (not the market) avoid issues that have arisen in other blockchains and markets. For example, a well-known marketplace recently canceled enforced royalty on NFTs. Additionally, since Kiosks use a shared object model on Sui, they serve as a trusted source where anyone can see the listed assets for sale and, if they wish, showcase and interact with them on the frontend.
Fundamentally, Sui intends to make Sui Kiosk universal by providing simple functionality to establish a common framework that facilitates adoption and interoperability. Its core components include:
- Kiosk + KioskOwnerCap is the basic component of Kiosk, where the owner of Kiosk can place assets and make them available for sale (unconditionally), which can be purchased by anyone.
- TransferPolicy + TransferPolicyCap defines the conditions under which assets can be traded or sold. They define whether the asset can be sold, at what price it can be purchased, and under what circumstances it can be purchased (e.g., only peer-to-peer transactions or through specified markets).
- Rules are specific clauses within TransferPolicy that define how the object can be traded. For example, rules can define the existence of fees or taxes, just like the royalty payable to creators defined in SuiFrens.
Just like self-service machines in the real world, creators need different policies and business models. Therefore, Sui Kiosk allows for expansion to achieve more complex scenarios, such as auctions and lotteries.
Read the Sui documentation to learn about the specific functions to use when building with Sui Kiosk. Get the Kiosk code from Mysten Labs’ Github and start building.
🌟 Sui Documentation:
https://docs.sui.io/devnet/build/sui-kiosk
🌟 Github:
https://github.com/MystenLabs/apps/tree/main/kiosk
Using Kiosk in SuiFrens
As part of the Active Contributor and Early Supporter (ACES) initiative, Mysten Labs distributed 380,000 SuiFrens Bull Shark NFTs to accredited addresses in June. These Bull Shark NFTs are delivered within a Kiosk, which controls the sales of SuiFrens (currently only available for sale through NFT markets that support Kiosk), sets royalties, and allows the transfer of these NFTs only if the above two conditions are met.
The purpose of putting SuiFrens NFTs into the Kiosk is to demonstrate mandatory royalty enforcement, a feature that many creators and developers need but is rarely provided on many blockchains.
There are two key rules implemented through TransferPolicy in the SuiFrens Bull Shark Kiosk:
- Royalty Rule: Specifies the amount to be paid to the creator upon resale (in this case, 0.1% or 0.1 SUI, whichever is higher)
- Lock Rule: Prevents assets from being listed or traded outside the Kiosk, bypassing the royalty rule
The combination of these rules demonstrates a simple example of mandatory royalty enforcement. To use the native features of Sui Kiosk, creators need to use the common packages supported by Sui in various applications and markets. Fragmented code may pose risks in these functionalities, so developers are advised to use known and established code.
In addition, others can also build their own packages to use Sui Kiosk. For example, many creators on Sui use the Origin Byte Kiosk, which comes with additional tools. You can learn more about the Origin Byte Kiosk on the Origin Byte website.
Mysten Labs developed and open-sourced Kiosk to make it easy for creators, developers, and markets to use. Kiosk defines the above policies and provides them in an easy-to-use manner. Kiosk has been supported by most markets on Sui, and Mysten Labs is in discussions with Origin Byte to find common ground between Sui Kiosk and Origin Byte Kiosk.
Orange Comet is a company developing next-generation games and entertainment, and they shared why they use Kiosk:
“Sui Move has great flexibility, while standards are crucial. By adopting Mysten’s Kiosk framework, we are able to optimize asset liquidity on-chain and establish standardized features for the gaming market, such as the game we built, ‘Walking Dead Lands.’ This approach allows us to prioritize game development while leveraging the blockchain to find innovative opportunities.”
If you currently own SuiFrens Bull Shark NFT or Water Weasel NFT, the following information may apply to you:
- In your wallet, SuiFren will appear as a padlock, indicating that it is locked in the Kiosk and you will not be able to send SuiFren to another address.
- If you want to sell SuiFren, you must use an NFT marketplace that supports Kiosk, which currently includes HypersLianGuaice, Blue Move, Keepsake, and TradePort.
- After purchasing SuiFren through these marketplaces, they will continue to be locked in the Kiosk, so any future transactions will also need to be done through the NFT marketplace.
- The first generation of Water Weasels released in May is configured within the Kiosk and can be traded through these marketplaces.
Guide to Using Kiosk
To initiate asset transfers, creators can use the Publisher object to create a TransferPolicy for the asset. You can specify different requirements for each asset type, but all assets of the same type use the same transfer policy and related conditions.
For Bull Sharks in SuiFrens, Kiosk defines two rules in the TransferPolicy:
- The first rule is the royalty rule, which specifies the royalty amount to be paid when the asset is sold on the secondary market. This ensures that Mysten Labs, as the creator of SuiFrens Bull Shark, will receive a specified percentage (0.1%) or 0.1 SUI of the sale price, whichever is higher. Creators can also choose to specify a fixed fee. The royalty rule will continue to apply to future asset sales, and Mysten Labs will continue to receive the specified royalty for each sale.
- To ensure that sellers and buyers cannot bypass the royalty rule, the second rule is the lock rule, which enforces the royalty obligation. It specifies that assets cannot be transferred from one Kiosk to another for free. Assets must be sold or purchased through an NFT platform to be transferred, meaning that Bull Sharks primarily circulate through Kiosk-supported NFT marketplaces.
To successfully complete a sale, both of the above conditions set in the TransferPolicy rules must be met.
We are currently developing two additional rules for Kiosk:
- Soul-Bound Kiosk: This will make an asset exclusive to an owner. If the item is sold, the buyer can only directly acquire ownership if the creator (or their authorized seller) sets their Kiosk as soul-bound. This is particularly useful for loyalty programs that require exclusive ownership.
- Minimum Price Rule: This will allow creators to set a minimum sale price for their assets. Owners will be restricted from listing the asset at a price lower than the amount initially specified by the creator.
The combination of these rules will provide essential tools for creators selling IP on Sui, clearly protecting the rights of creators, sellers, and buyers.
You can find the Kiosk code on Mysten Labs’ GitHub, and if you have any questions about how to use it, you can join the Mysten Discord community for more information.
🌟Discord: http://discord.gg/mysten
The Future of Kiosk Empowers More Creators
The case of SuiFrens is just a simple application regarding royalties. On Sui, there are more diverse and complex business models that need to be defined and executed. We are collaborating with creators to evaluate opportunities for providing customized transaction scenarios (such as using extensions to support auctions or lotteries) and business model transformations (such as licensing).
HypersLianGuaice is the NFT marketplace on Sui, supporting Sui Kiosk, which provides creators with great flexibility and control:
“Sui Kiosk provides a great interface for holding NFTs on Sui. With the support of the Mysten Lab software package, we are very excited about the upcoming market and the more customized interactive features between users and projects.”
All of these features are based on the native functionality of Sui Kiosk, which allows transactions and business activities to take place in a fully decentralized environment without compromising fairness, creator control, and transparency.
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