NFT Provenance: What the Token Record Actually Evidences

An NFT is a token whose contract assigns a unique identifier and tracks transfers of that identifier between addresses. The on-chain record evidences who held the token at each block, and nothing more. The underlying right the token is said to represent sits outside the chain entry.

Provenance for an NFT therefore has two layers. The token layer is the transfer log on the contract. The right layer is the off-chain agreement, licence, or metadata that defines what holding the token entitles the holder to. A documentation file records both layers separately.

Metadata stored off-chain is mutable unless pinned. A token that points at a centralised URL may resolve to different content at different dates, and the file records the content hash at the date of review so a later reviewer can confirm what the token referenced at that time.

On-chain metadata is immutable but rare. Where the contract stores the descriptive data on the chain itself, the file records that fact and treats the data as part of the token record. Where the contract stores only a pointer, the pointer and its resolution are recorded together.

Royalty and licence terms vary by collection. A documentation file records the licence in force at the time of the recorded transfer rather than the licence in force at the date of review, since collection terms have been amended after the fact in several documented cases.

Wash trading patterns appear on NFT contracts as well as fungible exchanges. The file records repeated transfers between linked addresses as a separate observation rather than as price discovery, since the pattern affects how a counterparty reads the transfer history.

Marketplace exports complement the on-chain record. The marketplace records the sale price, the platform fee, and the counterparty as known to the platform. The file pairs the marketplace export with the chain entry rather than treating either source as authoritative on its own.

Our scope is to structure NFT records the client provides or authorises us to derive from public data. We do not value collections, do not advise on holdings, and do not represent the client in disputes with marketplaces, collections, or other counterparties involved in the transfer chain.