Collection Reporting Guidelines + Warning Labels

To protect the Cardano NFT community, JPG Store has created a reporting system that allows collections to be flagged as derivatives, rugpulls and other labels. No punitive actions will be taken against collections with these flags besides an informative label next to the collection name.

This document contains our guidelines regarding this system which should not be viewed as fixed, but rather an ongoing best-effort basis to tackle a complex issue which can change at any time in the future based on feedback from the community.

The reason we are introducing these guidelines is because there are a handful of bad actors who wish to scam, mislead or otherwise act in bad faith to take advantage of NFT collectors. This not only hurts collectors, but also the creators who are trying to bring original, innovative artwork to Cardano and grow our ecosystem.

Therefore, our team felt it was necessary, for the long term health of our space, to provide informative labels on collections when it has received substantial community reports, have clear indications of points defined below, as well as a subsequent review by our team.

Derivative Flag

Inherently, the derivative flag on a collection is not an indicator of malicious activity. Rather it exists to inform traders that the community has seen parallels between the flagged collection and a pre-existing collection.

We, as JPG Store, do not define intent. A derivative can be homage, a similar product, a possible infringement on IP, or a mixture of the above; but we mark these in order to provide context to users new to the space.

Provided below, is a transparent overview of the process we intend to adopt. A collection will be marked as a derivative if it qualifies the statements below:

1. JPG Store has received substantial community reports regarding the collection.
2. The collection in question has a homophonous name, a name that is an extension upon the name of another collection, a name with world play that might drive mistaken traffic to the collection, the same intended name as another but written with a different character set, or any combination of the above.
3. The collection’s artwork has similarities with another where a new entrant might get confused between the two. Similarities will be judged based on art style, color palette, composition, and subject matter. Typically, if the artwork uses an identical base model that has been resized, translated, pixelated, color changed, or otherwise edited in a low effort manner we will consider the collection a derivative.
4. The collection’s social media or other online presence are visually or narrative-wise similar enough to cause mistaken engagement.

Rugpull Flag

The rugpull flag is an indicator of a “hard rug” where the creators of a project deliberately try to scam or mislead collectors. A collection will be marked as a rugpull if it qualifies the statements below:

1. JPG has received substantial community reports regarding the collection.
2. The collection has defrauded its collectors by removing its social media profiles or accessibility to its owners under suspicious circumstances without notice, after minting has taken place.

Please keep in mind:

1. Any projects that close down before minting takes place would not be marked rugpull but will get their verification removed instead, if applicable.
2. Non-fulfillment of predictive expectations of trading details like floor prices, volume and trading frequency are not taken into consideration.

Inactive Flag

The inactive flag is an indicator that the team behind a project isn’t actively working on it. A collection will be marked as inactive if it qualifies the statements below:

1. JPG has received substantial community reports regarding the collection.
2. The collection existed in the community but is no longer active due to any of the reasons mentioned below: 
1. 6-12 Months of spotty / no messages/updates from the original team, uncertainty from mods
2. An official statement posted from the team itself regarding its hiatus or inactivity: 
1. Due to financial instability, the team no longer has the funds to continue developing on its roadmap.
2. Due to special circumstances, (personal health, mental health, etc.) the team no longer has the capacity to continue developing on its roadmap.

Please keep in mind:

Non-fulfillment of predicted expectations of trading details such as floor prices, volume, and trading frequency, roadmap will not be taken into consideration.

This guideline is a growing document and we will announce changes to this document as we continue to build this up in coordination with stakeholders in the community.

*Please Note that collections with the derivative,inactive or rugpull label will not be shown on the carousel at the top of the homepage, but will show in the trending collection section depending on the label: https://twitter.com/jpgstoreNFT/status/1637917889075314691