As one of the latest innovative technologies in the field of cryptoeconomics, “non-fungible token” (NFT; also called “non-divisible token”) has recently been used in cryptogames, virtual space, figure cards, cryptoartworks, and other similar forms. NFT has unique attributes that allow people to easily issue or have “digital products” that are verifiable but not replaceable nor can be counterfeited completely.
However, most of the existing NFT transactions are realized in the form of, for example, conventional fixed-price transactions and auctions, resulting in overall low liquidity. According to statistical data, the annual turnover ratio of NFT in the market is only 8% as a whole. This means that only 8% of all pending order NFTs can be sold once a year. Therefore, conventional transaction mechanisms and bad liquidity have seriously affected user involvement in NFT.
To address this concern, a new automatic transaction protocol, called “xNFT Protocol,” is introduced in this paper. In addition to the existing common fixed-price transaction and auction, xNFT Protocol also provides a special transaction form, “Public Blind Box,” that automatically determines the fair price of NFT and draws the price of the blind box with an algorithm without manual pricing. This new development is expected to greatly enrich selling attractiveness, randomness, and mystery for user involvement in NFT transactions and improve liquidity.
XNFT (xNFT Protocol Token) is the governance token which is issued for 100 million in total and will not be increased any more. The 30% XNPTs are slowly injected into swap pool of xNFT Protocol and the rest 70% XNPTs are used for financing, airdrops, team rewards, technical development, market expansion, and ecological development.
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