Yuga Labs Flags ERC-721C and ERC-1155C Claim Snag, Adds EIP-7702 Workaround
TREE NEWS reports: Yuga Labs blockchain vice president Quit has warned that holders of NFT collections issued under the ERC-721C and ERC-1155C token standards may temporarily be unable to claim assets through the company’s NFT claim portal. The restriction affects only certain collections, and Yuga-controlled series are expected to be fixed as soon as tomorrow.
Until then, affected holders can either enable a “7702 delegate OTC” option in their transfer-validator settings or whitelist a designated Ethereum and ApeChain address as a 7702 delegated address to lift the limitation.
Why the Standard Matters
ERC-721C and ERC-1155C are Yuga-backed extensions that bolt programmable transfer restrictions onto the familiar ERC-721 and ERC-1155 standards. They let creators enforce royalties and gate transfers at the token-contract level — a long-running demand from NFT issuers after marketplaces made royalty payments optional. The trade-off is complexity: because transfer logic lives inside the token contract rather than the marketplace, any claim, bridge, or settlement flow must be explicitly compatible with those hooks.
That is exactly where the current problem sits. A claim portal that routes assets through a payment processor or validator layer must correctly interpret the restriction flags; when it does not, legitimate holders are blocked from receiving assets they own.
EIP-7702 Enters the Frame
The proposed fix leans on EIP-7702, which allows an externally owned account to set code and temporarily act like a smart contract. By delegating to a whitelisted address, a holder can satisfy the validator’s authorization checks without moving the underlying NFT. It is a pragmatic, if technical, workaround — and a sign of how quickly 7702 delegation is being folded into production NFT infrastructure.
The Payment Processor Fallout
Separately, Quit said the claim site for assets tied to the Payment Processor exploit is now live. Users whose NFTs were successfully preserved can claim them, but must first revoke authorization granted to the Payment Processor. That instruction is the key operational detail: unrevoked approvals remain a live attack surface even after a recovery process begins.
What to Watch
- Whether Yuga completes the fix on schedule and whether other ERC-721C/ERC-1155C issuers face the same claim-portal incompatibility.
- How broadly EIP-7702 delegation gets adopted as a compliance and authorization layer for NFT transfers.
- Whether holders actually revoke Payment Processor approvals — a step that determines whether recovered assets stay recovered.
The episode is a reminder that programmable royalties and transfer gating, however valuable to creators, introduce failure modes that surface precisely when users need to move or claim assets. As token standards grow more opinionated, the tooling around them — claim portals, bridges, validators — has to keep pace.
