3 Real world use cases for NFTs
Sub-Sector #1: Reliable On-Chain Credentialing that Maintains PrivacyOne example of this is Sismo ETH, which issues non-transferable tokens (also called Soulbound Tokens or SBTs) that verify account credentials without revealing the specific nature of those credentials. The process works as follows:Alice is part of a particular group of accounts (ENS DAO Voters)Alice interacts with an Attester (smart contract) to prove that she is part of that group. Each attester has specific properties (e.g ZK or not) and requires specific types of proofs (e.g ZKP) from users. Each attester needs access to the group data on-chain, in a specific group format (e.g Merkle tree root)Alice generates the proof in her browser. Alice sends the proof to the attester and receives an Attestation and a BadgeThe attestation is recorded in the Attestations Registry (smart contract)The Badge is a Soulbound Token.
Sub-Sector #2: Bridging NFTs - Two of Solana's most prominent NFT collections recently decided to bridge to the Ethereum ecosystem (DeGods NFT on Ethereum and Yoots on Polygon). This raises the question of what will happen to the price of DeGods after bridging. If the valuation rerates higher significantly, other projects and communities may take it as a sign that the “ETH premium” is real. Historically, NFTs on Ethereum carried a premium versus their counterparts on other chains. If bridging and ETH-based pricing closes that premium, two major trends may form: There might be a flight from alternative Layer 1s back to EthereumLegitimate projects might get bid up in anticipation of getting bridged to Ethereum.
Sub-Sector #3: NFT Perpetuals- NFT Perp is a platform that allows users to trade perpetual futures tracking the prices of various NFTs. This has the potential to bring about:The ability to go short on NFT collectionsSynthetic fractionalization of NFTs using leveragePotential market manipulation.
Art Gobblers
Art Gobblers is a unique NFT project that aims to incentivize the creation of curated art using NFTs and a fungible token called $GOO. The project is the brainchild of Justin Roiland, the creator of Rick and Morty, and Paradigm.
At the center of the Art Gobblers ecosystem are virtual smart-contract beings called Gobblers. These Gobblers 'gobble' up art created by artists on virtual pages, storing the art in their bellies as ERC721 NFTs. The $GOO token is emitted by Gobblers and is used to create new Gobblers and blank pages. The more $GOO a Gobbler has, the more $GOO it will emit. This mechanism is designed to align NFT holders and token holders, encouraging both to work towards the success of the ecosystem.
In addition to $GOO, Art Gobblers also utilizes a system called VRDA (Variable Rate Dutch Auctions) to adjust NFT prices. VRDA adjusts prices up when sales are ahead of schedule and down when sales are behind schedule, aiming to achieve a targeted NFT issuance schedule. This system can lead to interesting gameplay as players must decide when to trade $GOO for Gobblers, potentially affecting the VRDA price for everyone else.
There are also 10 rare legendary Gobblers, which have unique properties and are issued when the Gobbler supply increases by 10%. These legendary Gobblers issue $GOO at a faster rate and their price doubles every time one is issued. To obtain a legendary Gobbler, a regular Gobbler must be burned.
The ultimate goal of Art Gobblers is to create a community that rewards the best artists given its limited resources, resulting in a highly curated ecosystem of high quality art. So far, the project has seen impressive traction, with 1,841 Gobblers minted and a volume of 29k ETH. Despite its success, it's important to note that participation in the Gobblers ecosystem requires active engagement and there is no passive way to participate.
NFTs: A Comprehensive Exploration of the Digital Asset Revolution
Sources:
https://www.paradigm.xyz/2022/09/artgobblers#introduction
https://www.paradigm.xyz/2022/09/goo
https://www.paradigm.xyz/2022/08/vrgda
https://twitter.com/wardaddycapital/status/1587208796438339584
3 Real world use cases for NFTs
Sub-Sector #1: Reliable On-Chain Credentialing that Maintains PrivacyOne example of this is Sismo ETH, which issues non-transferable tokens (also called Soulbound Tokens or SBTs) that verify account credentials without revealing the specific nature of those credentials. The process works as follows:Alice is part of a particular group of accounts (ENS DAO Voters)Alice interacts with an Attester (smart contract) to prove that she is part of that group. Each attester has specific properties (e.g ZK or not) and requires specific types of proofs (e.g ZKP) from users. Each attester needs access to the group data on-chain, in a specific group format (e.g Merkle tree root)Alice generates the proof in her browser. Alice sends the proof to the attester and receives an Attestation and a BadgeThe attestation is recorded in the Attestations Registry (smart contract)The Badge is a Soulbound Token.
Sub-Sector #2: Bridging NFTs - Two of Solana's most prominent NFT collections recently decided to bridge to the Ethereum ecosystem (DeGods NFT on Ethereum and Yoots on Polygon). This raises the question of what will happen to the price of DeGods after bridging. If the valuation rerates higher significantly, other projects and communities may take it as a sign that the “ETH premium” is real. Historically, NFTs on Ethereum carried a premium versus their counterparts on other chains. If bridging and ETH-based pricing closes that premium, two major trends may form: There might be a flight from alternative Layer 1s back to EthereumLegitimate projects might get bid up in anticipation of getting bridged to Ethereum.
Sub-Sector #3: NFT Perpetuals- NFT Perp is a platform that allows users to trade perpetual futures tracking the prices of various NFTs. This has the potential to bring about:The ability to go short on NFT collectionsSynthetic fractionalization of NFTs using leveragePotential market manipulation.
Art Gobblers
Art Gobblers is a unique NFT project that aims to incentivize the creation of curated art using NFTs and a fungible token called $GOO. The project is the brainchild of Justin Roiland, the creator of Rick and Morty, and Paradigm.
At the center of the Art Gobblers ecosystem are virtual smart-contract beings called Gobblers. These Gobblers 'gobble' up art created by artists on virtual pages, storing the art in their bellies as ERC721 NFTs. The $GOO token is emitted by Gobblers and is used to create new Gobblers and blank pages. The more $GOO a Gobbler has, the more $GOO it will emit. This mechanism is designed to align NFT holders and token holders, encouraging both to work towards the success of the ecosystem.
In addition to $GOO, Art Gobblers also utilizes a system called VRDA (Variable Rate Dutch Auctions) to adjust NFT prices. VRDA adjusts prices up when sales are ahead of schedule and down when sales are behind schedule, aiming to achieve a targeted NFT issuance schedule. This system can lead to interesting gameplay as players must decide when to trade $GOO for Gobblers, potentially affecting the VRDA price for everyone else.
There are also 10 rare legendary Gobblers, which have unique properties and are issued when the Gobbler supply increases by 10%. These legendary Gobblers issue $GOO at a faster rate and their price doubles every time one is issued. To obtain a legendary Gobbler, a regular Gobbler must be burned.
The ultimate goal of Art Gobblers is to create a community that rewards the best artists given its limited resources, resulting in a highly curated ecosystem of high quality art. So far, the project has seen impressive traction, with 1,841 Gobblers minted and a volume of 29k ETH. Despite its success, it's important to note that participation in the Gobblers ecosystem requires active engagement and there is no passive way to participate.
NFTs: A Comprehensive Exploration of the Digital Asset Revolution
Sources:
https://www.paradigm.xyz/2022/09/artgobblers#introduction
https://www.paradigm.xyz/2022/09/goo
https://www.paradigm.xyz/2022/08/vrgda
https://twitter.com/wardaddycapital/status/1587208796438339584
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3 Real world use cases for NFTs and ART GOBBLERS
Jan 19, 2023
3 Real world use cases for NFTs and ART GOBBLERS
Jan 19, 2023