The NIFTY Protocol creates a reputation layer for NFT auctions by employing gamified staking and "farming" activities to crowdsource reputation data.
NFTY is the utility token behind this protocol. . When staked, it is used to:
The endorsement/advocacy process uses economic incentives and rewards funded from 7.5% of the final payout of auctions using the protocol. The reward is distributed to the pool of “endorsers” or “advocates” in proportion to each token holder's respective endorsement allocation amount, in NFTY tokens, to an auction.
NFTY launched on September 20, 2021 with 5 million tokens. There is no maximum supply, but new tokens can only be minted through staking. The number of tokens staked and the length of a wallet’s staking streak determine the number of NFTY tokens minted once they are claimed by the staker.
Stakers must use their NFTY to endorse auctions if they want to claim their reward. The advocacy process does not spend or burn any existing NFTY tokens, but locks them to prevent unstaking until the endorsed auction closes.
NFTY is the product of a team with highly diverse backgrounds. Chris and Clinton Mills are renowned video game developers with multiple Webby awards under their belt, while their father Ed Mills is an experienced Hollywood talent agent with a strong finger on the pulse of what the creative community needs to see before they’re willing to enter the NFT space en masse.
Jean-Philippe Beaudet is an experienced token builder and early blockchain entrepreneur recognized as one of the top 50 Canadians in crypto. Alyze Sam is a renowned speaker, author, and blockchain strategist who runs marketing campaigns for many successful token launches. Steve Wood is an impact-diven serial entrepreneur and data scientist responsible for multiple US laws, mobile app launches, and humanitarian campaigns across the world.
Rounding out the team is AI and privacy expert Evelyne Chevry, onboarding and project manager Chrissy Cook, head writer and content creator Adam Alonzi, advisor and billion-dollar social project entrepreneur Jake Collins, and an ever growing support team across the globe.
This team came together over the course of 2021 to address the problems of reputation and access for NFT artists and collectors after countless conversations revealed the many systemic gaps holding back the most talented from stepping into the arena.
NFTY rewards excellence in the NFT space through unprecedented gamified DeFi mechanisms.
Stakers are presented with the challenge of finding the best strategies to “endorse” auctions based on their ability to close the sale, potential payout, quality of the NFT, and the number of other advocates currently endorsing the auction. Successful strategies result in greater payouts called “farming rewards.” The reward for each auction is 7.5% of the final sale value.
This reward is distributed proportionally to all advocates based on the proportion of NFTY tokens they allocated to endorse each auction. For example, if Person A allocates 10 NFTY to an auction and Person B allocates 20 NFTY to it, Person A gets 1/3 of the 7.5% advocacy reward. Allocated NFTY tokens are locked and cannot be unstaked until the auction is completed and the NFT is sold, at which point they are unlocked for reallocation or unstaking.
This paves the way for an array of possible strategies without incentivizing the endorsement of non-sellable, low-quality, fraudulent, or spammy content - doing so is economically unviable. The result is a filter and data analytics platform; users can determine the degree of desirability as well as the expected sale price of an NFT.
Altogether these mechanisms create a reputation layer akin to likes, upvotes, or favorites on social media platforms while using economic incentives to ensure quality is promoted. Scams, spammy, and low-quality NFTs are filtered out while top-quality auctions are signal boosted to potential buyers.
NFTY is currently available for trading on the DeFi automated market maker platform Uniswap with an Ethereum (ETH) pairing.
New to cryptocurrency? Read CoinMarketCap’s easy guide to buying Bitcoin or any other token.