ERC-948
In short: ERC-948 is a proposed Ethereum token protocol designed for subscription service businesses. It aims to help a business connect with its customers through…
ERC-948 is a proposed Ethereum token protocol designed for subscription service businesses. It aims to help a business connect with its customers through subscription-based transactions, where a customer authorizes recurring payments once instead of sending every payment by hand.
Why it matters
Blockchain payments are normally "push" payments: the holder must sign each transaction. That works for one-off purchases, but not for monthly memberships, software licenses or streaming services, which depend on "pull" payments collected on a schedule. ERC-948 proposed a common way for a customer to approve a subscription with clear terms, such as the token, the amount, the payment interval and the receiving address. The business can then collect each payment when it falls due, and the customer can cancel at any time. A shared standard would let wallets display subscriptions consistently and let businesses support many tokens with the same code. The idea was discussed as an open proposal and did not become a widely adopted standard.
Example
A news website charges a monthly fee in a stablecoin. A reader approves a subscription for a fixed amount per month from their wallet. At the start of each month, the website's contract collects that amount and cannot take more than was approved. When the reader cancels, the next collection is refused and no further payments are taken.