{"id":"ERC-7578","name":"Physical Asset Redemption","status":"Final","chain":"both","category":{"id":"physical","name":"Physical & Real World","description":"Connecting NFTs to physical items"},"journeyStages":[{"id":"specialized","name":"Specialized Interactions","description":"Physical items, AI, social, gaming"}],"uxImpact":"Users holding physical-asset-backed NFTs can see verified real-world details: who issued it, who holds the physical item, where it's stored, legal terms, and declared value. Design implications: display token issuer, asset holder, storage location as structured fields, link to legal terms (IPFS), show jurisdiction and declared value prominently, design verification badges for issuer reputation. Design decisions: how much legal info to surface upfront vs expandable sections, whether to show issuer verification status, formatting currency/value display, handling missing optional fields gracefully.","hasDetailedContent":true,"content":{"id":"ERC-7578","sources":[{"label":"Official specification","url":"https://eips.ethereum.org/EIPS/erc-7578","type":"official-spec"}],"lastReviewed":"2026-05-25","lastUpdated":"2026-05-25","summary":"Users holding physical-asset-backed NFTs can see verified real-world details: who issued it, who holds the physical item, where it's stored, legal terms, and declared value.","designerTakeaways":["You can layout issuer, custodian, storage, and declared value as scannable rows above the fold.","Your legal section can collapse behind View terms with IPFS link and jurisdiction chip.","You can badge Verified issuer when reputation attestation exists."],"applicability":{"whenToUse":["NFTs represent vaulted gold, watches, wine, or redeemable physical goods.","RWA platform uses ERC-7578 metadata schema.","Trust requires issuer and custody transparency."],"whenToAvoid":["Pure digital art with no physical claim.","Metadata lacks structured RWA fields.","Regulatory review cannot support displayed claims."]},"prototypeFirst":[{"screen":"Physical backing summary","why":"Buyer diligence starts at structured fields.","covers":["Full metadata","Missing optional fields"],"include":["Issuer row","Custodian","Storage location","Declared value","Jurisdiction"]},{"screen":"Legal terms expand","why":"Lawyers need access; users need skim.","covers":["Terms linked","Missing terms"],"include":["Collapsed legal section","IPFS link","Jurisdiction badge"]},{"screen":"Redeem physical flow","why":"Holder claims real item.","covers":["Eligible","In transit","Redeemed"],"include":["Redeem CTA","Shipping form","Status tracker"]},{"screen":"Unverified issuer warning","why":"Not all issuers equal trust.","covers":["Verified","Unverified"],"include":["Issuer badge tier","Verify issuer link","Risk disclaimer"]}],"mentalModel":[{"label":"Token","description":"Digital claim on physical asset."},{"label":"Issuer","description":"Entity that minted claim — trust anchor."},{"label":"Custodian","description":"Who physically holds the item."},{"label":"Declared value","description":"Stated worth — not guaranteed market price."},{"label":"Redemption","description":"Process to receive physical item."}],"statesToDesign":[{"state":"Fully documented asset","trigger":"All key fields present.","userNeed":"Trust and compare.","designResponse":"Complete summary card."},{"state":"Missing optional field","trigger":"Storage or terms absent.","userNeed":"Not think broken.","designResponse":"Not provided gray state."},{"state":"Unverified issuer","trigger":"No attestation.","userNeed":"Extra caution.","designResponse":"Unverified issuer warning banner."},{"state":"Redemption in progress","trigger":"User started claim.","userNeed":"Track shipment.","designResponse":"Redemption status stepper."},{"state":"Redeemed — NFT burned or locked","trigger":"Physical delivered.","userNeed":"See completion.","designResponse":"Redeemed archive state."}],"designDecisions":[{"question":"Legal terms upfront?","recommendation":"Collapsed with summary bullets upfront.","rationale":"Compliance accessible without wall of text."},{"question":"Currency display for value?","recommendation":"ISO currency plus formatted amount.","rationale":"Declared value needs unit clarity."},{"question":"Issuer verification tiers?","recommendation":"Verified / Unverified / Unknown badges.","rationale":"Binary verified-only hides nuance."}],"problemsSolved":[{"problem":"Opaque RWA NFTs","oldWay":"JPEG with vague description","newWay":"Structured issuer custody value fields","impact":"critical"},{"problem":"Legal terms inaccessible","oldWay":"Buried broken link","newWay":"IPFS terms with jurisdiction","impact":"high"},{"problem":"Redemption status unknown","oldWay":"Email support only","newWay":"On-app redemption tracker","impact":"medium"}],"uxPatterns":[{"name":"RWA Summary Card","description":"Structured physical backing fields.","mockup":"concept/physical-link","components":["IssuerRow","CustodianRow","ValueDisplay","TermsExpand"],"userFlow":["Open token","Scan backing","Expand legal","Decide trust"]},{"name":"Physical Redemption Tracker","description":"Claim status from request to delivery.","mockup":"concept/physical-link","components":["RedeemCTA","StatusStepper","ShippingForm"],"userFlow":["Tap Redeem","Submit details","Track steps","Mark complete"]}],"seenInTheWild":[{"app":"Courtyard","url":"https://courtyard.io/","note":"Physical collectibles vault and redemption UX."},{"app":"4K","url":"https://4k.com/","note":"Vaulted asset tokenization display patterns."},{"app":"Tether Gold","url":"https://gold.tether.to/","note":"Declared value and custody disclosure."}],"antiPatterns":[{"pattern":"No issuer row on RWA detail","why":"Cannot assess trust","instead":"Issuer first row with verification badge","severity":"critical"},{"pattern":"Declared value without currency","why":"Ambiguous amount","instead":"USD 12,400 formatted","severity":"high"},{"pattern":"Legal terms only as raw IPFS hash","why":"Users cannot access","instead":"View terms button with fetch preview","severity":"medium"}],"vocabulary":[{"use":"Issued by","avoid":"Token issuer address","why":"Entity name primary."},{"use":"Stored at","avoid":"Custodial storage URI","why":"Location language."},{"use":"Declared value","avoid":"Oracle price feed","why":"Legal distinction from market price."}],"onMonad":[{"aspect":"RWA redemption txs","ethereum":"Redeem gas discourages claims","monad":"Lower fees ease physical claim flow","designImplication":"Single-tap redeem start on Monad."},{"aspect":"Metadata refresh","ethereum":"Custody updates slow to show","monad":"Fast updates after custody change events","designImplication":"Inline refresh on issuer status change."}],"technicalNotes":"ERC-7578 RWA fields must distinguish declared value from market price; verify issuer when possible.","relatedStandards":[{"id":"ERC-6672","relationship":"Multi-redemption perks on same NFT"},{"id":"ERC-721","relationship":"Physical asset metadata extension"}]},"sources":[{"label":"Official specification","url":"https://eips.ethereum.org/EIPS/erc-7578","type":"official-spec"},{"label":"Discussion","url":"https://ethereum-magicians.org/search?q=ERC-7578","type":"discussion"},{"label":"Official specification","url":"https://eips.ethereum.org/EIPS/erc-7578","type":"official-spec"}],"urls":{"canonical":"https://www.eipsfordesigners.com/standards/ERC-7578","markdown":"https://www.eipsfordesigners.com/standards/ERC-7578/content.md","agent":"https://www.eipsfordesigners.com/standards/ERC-7578/agent.md","api":"https://www.eipsfordesigners.com/api/standards/ERC-7578","official":"https://eips.ethereum.org/EIPS/erc-7578","discussion":"https://ethereum-magicians.org/search?q=ERC-7578"},"freshness":{"lastReviewed":"2026-05-25","lastUpdated":"2026-05-25"}}