Bored Ape developer Yuga Labs has announced the introduction of a new CryptoPunks721 wrapper, aimed at facilitating trades on NFT marketplaces. The wrapper operates on a permissionless basis and utilizes Larva Labs’ PunksData smart contract for on-chain metadata.
The purpose of the wrapper is to streamline the trading of NFTs from the CryptoPunks collection, which was minted before the widespread acceptance of the ERC-721 standard. Unlike newer NFTs, the original CryptoPunks NFTs require wrapping before being eligible for sale on key marketplaces. Wrapping involves creating a cloned token with equivalent value while securely holding the original token.
Previously, the process of wrapping and unwrapping CryptoPunks involved high operational costs and multiple transactions. However, the new CryptoPunks721 wrapper allows for both wrapping and unwrapping of C721 tokens in a single transaction, reducing gas fees significantly.
CryptoPunks and the Benefits of the Wrapper
CryptoPunks is a collection of 10,000 algorithmically generated NFTs on the Ethereum blockchain. Each CryptoPunk is unique and has its own set of features, contributing to its rarity. Yuga Labs acquired the CryptoPunks and Meebits NFT series in March 2022, though the financial terms of the deal were not disclosed.
With the introduction of the CryptoPunks721 wrapper, traders and collectors of CryptoPunks can now easily wrap and unwrap their NFTs, making them seamlessly tradable on various marketplaces. This development is significant as it simplifies the process for CryptoPunks owners who previously had to go through multiple steps and incur high gas fees to make their NFTs market-ready.
By utilizing the Larva Labs’ PunksData smart contract, the wrapper ensures that the on-chain metadata of the NFTs is preserved, providing transparency and authenticity to potential buyers. This not only benefits the existing CryptoPunks community but also expands the reach of the collection by making it more accessible to a wider audience of NFT enthusiasts.
In conclusion, the introduction of the CryptoPunks721 wrapper by Yuga Labs simplifies and lowers the cost of trading CryptoPunks NFTs on various marketplaces. This development enhances the liquidity and marketability of the CryptoPunks collection while maintaining the integrity and authenticity of the NFTs through its use of Larva Labs’ PunksData smart contract.