Introducing NFT20 V0.1
After months of hard work we are happy to introduce the first version of NFT20.
What is NFT20
NFT20 is a permissionless p2p protocol to tokenize NFTs and make them tradable on decentralized exchanges such as UniSwap. Anyone can create a pool for an NFT contract and get ERC20 token derivatives of their NFTs in a permission-less way, those tokens can be transferred and traded on DEXes right away.
How does NFT20 help an NFT holder?
If a pool is available for your NFT you can get 100 tokens for it right away, this gives you many options like:
- Swap the tokens you received for another NFT available in the pool.
- Use the tokens to bid on an auction for a higher quality NFTs, for example by tokenizing 10 crypto kitties and get 1000 tokens, with those tokens buy a gen 0 kitty if an auction is available.
- Sell the tokens on Uniswap if enough liquidity is available.
How does NFT20 help NFT projects founders?
When you create a pool for your project on NFT20 the NFT20 factory will create a new contract with a new token where the peg is 100 tokens to 1 NFT anyone deposits into the contract.
This will give a new use case for your users (see above) and if you have enough liquidity on Uniwap it will give confidence to new speculators in your project as they can have liquidity for their NFTs at any time.
Also, project owners will get 5% of all auctions sold within NFT20.
The first project that you can tokenize, swap and exchange is DokiDoki NFTs (it was added by us), in the following days more projects will start joining and marketing will ramp up.
Governance
All fees and some decisions of the protocol will be handled by our DAO managed by players of the VeryNifty Gallery NFT game.
Reasons for this:
- The VNFT game requires you to be active daily, we want to support people that are real users of what we do, are exposed to the NFT market, and are not short term speculators. We want to grow together, long term.
- We developed the game, being our second project and already well established, it is a great fit for us and in the very unlikely case of any upside, we the developers and our early believers can all be rewarded.
How does the voting and fee distribution work?
NFT20 earns 5% of every tokenized NFT, 70% of those tokens will go to the DAO that is controlled by VNFT holders based on the current parameters:
- Must have 90HP and above.
- NFT must be at least 2 months old.
**Details on the voting weight of each VNFT will be released shortly after launch.**
To learn more about the VNFT game please check out this guide.
VNFT players that meet the above parameters will be able to vote on things like:
- NFT20 Fee distribution and percentages.
- Partnership proposals.
- Feature requests.
- More usecases will be added as we grow.
The other 30% of fees will be used to incentivize $MUSE-ETH liquidity, so players of the VNFT game are able to grow their NFTs and use them for governance.
Why no regular DAO like is popular in DEFI Jan 2021?
We don’t want to play the decentralized theater that is so popular now, we didn’t raise money or printed unlimited tokens with questionable pumpamentals to play governance.
We are active developers bootstraping real products and until our vision is executed, we won’t complete an exit to community.
We understand this is not for most short term speculators, but we are working without any funding or pre mine. Fun is what keep us going and spending hours reading random speculators posts and voting on those speculations, would kill our flow. We are creators, not speculators and we want to ship stuff.
Tokenomics
In our lite paper we announced an $NFT20 token distribution, that token will be released in a later period after launch, the distribution will be exactly as stated in the lite paper.
The main reasons of launching the protocol without a token:
Development costs, we are working on NFT20 without any funding or token sales, to release $NFT20, audit wraplp.com to offer incentives, and the time it takes to develop and test everything, it would cost us over $20k.
Product is what matters most, not tokens. We opted to first focus our very limited resources on the product instead of the token.
Risks. This is a complex protocol that involves several contracts, we don’t want to have a token with extra monetary value before everything is well tested in production.
The token will be released when the protocol is more stable, and the community grows enough to have the funds required.
We are always looking for contributors and developers, all our code is open sourced on GH and any helpful funds for deployment and audits can be sent to our wallet nft20.eth.
What’s to come?
We are super excited to release V0.1 but here is what you can expect from us in Q1-Q2 2021:
- Onboarding new projects.
- Testing and fixing bugs (there are many)
- $NFT20 token release.
Use with caution
NFT20 is still in BETA and our contracts were never audited, please use with caution and don’t put into it more than what you can afford to lose as hacks may happen.
