Hi everyone. I would like to propose an NFT pulse index.
What changed? (5, 6) Objective, Methodology & Requirements, (3) 1 Asset, (7) Fees.
We want the community input on what should be considered, your thoughts, and if you think anything is missing as part of the proposal process, so feel free to comment and suggest, token economy, etc.
Well, I tested that idea before, built an MVP, and I got many supporters in a day as well.
- Welcome to Index!
- NFT index token, suggested ticker: NFTX, which set tracks the performance of holding a diversified basket of 6 tokens, and plans to incorporate other NFT protocol into the contract.
- Website, Twitter account (https://twitter.com/NFTpulse), Discord, etc.
- Integration on Setprotocol page: Implement the whole NFT index ecosystem into https://www.tokensets.com/portfolio/nft (new page as shared below).
- Listing NFTX/ETH on Uniswap.
Motivation: NFT is taking over and becoming the focus of the blockchain community’s discussion.
That idea surged because there are many new NFT protocols surging, also people can save gas fees for exposure in many assets at once for example, saving time as well. We believe that the NFT pulse index could be great for the whole NFT market, inclusive for me as an investor.
QUESTIONS & FIRST ANSWERS
(1) - Size of opportunity: Can this index hit $100M? What is the market size? Expected revenue generation?
Absolutely, there is a big market ahead as shared below, which we think that the NFT pulse index will benefit the whole NFT industry bringing exposure and scale.
- NFT Market Capitalization: $511,375,061.
- Trading values: $86,176,195
Macro feeling, community research:
- Speculative market progression (100B market): https://twitter.com/GarlamWON/status/1313168506540654594
- Pomp: https://twitter.com/APompliano/status/1308037548493725696
- Chris from Placeholder: https://twitter.com/cburniske/status/1298363693760016384
- Cointelegraph talking about Defi Indexes: https://twitter.com/cointelegraph/status/
- The market is growing fast and many people are talking about it:
- "Launch Voting for Hot NFT Projects"
- Influencers: https://twitter.com/Josh_Rager/status/1313965124399529984
- Cases: https://twitter.com/cryptofitch/status/1313950667216687105
- Community asking: https://twitter.com/cryptocrane_ch/status/1314537718844620801
- Large exchange: https://twitter.com/huobiglobal/status/1314091702366343168
(2) - Differentiation: Is the index sufficiently differentiated from existing products? Will the index cannibalize an existing product?
Absolutely, it’s being the first-ever NFT pulse index covering a basket of NFT protocols existing in the market.
The index will benefit the NFT industry, exposure, involving good projects in the space, easy to exploring and understanding, saving fees, saving time, UI, and a trusted team.
(3) - On-chain liquidity analysis: Can existing on-chain liquidity support the proposed assets that are expected to be included in the index?
Yes, DEXes liquidity, e.g Uniswap:
$Meme contract: 0xD5525D397898e5502075Ea5E830d8914f6F0affe, https://info.uniswap.org/token/0xd5525d397898e5502075ea5e830d8914f6f0affe
$Rari contract: 0xfca59cd816ab1ead66534d82bc21e7515ce441cf https://info.uniswap.org/token/0xfca59cd816ab1ead66534d82bc21e7515ce441cf
$ghst contract: 0x3F382DbD960E3a9bbCeaE22651E88158d2791550 https://info.uniswap.org/token/0x3f382dbd960e3a9bbceae22651e88158d2791550
$sand contract: 0x3845badAde8e6dFF049820680d1F14bD3903a5d0 https://info.uniswap.org/token/0x3845badade8e6dff049820680d1f14bd3903a5d0
$mana contract: 0x0f5d2fb29fb7d3cfee444a200298f468908cc942 https://info.uniswap.org/token/0x0f5d2fb29fb7d3cfee444a200298f468908cc942
$dego finance contract: 0x88ef27e69108b2633f8e1c184cc37940a075cc02 - 2M liquidity
(4) - Author background and commitment: Is the author the right person to create this Index? Can they support distribution and marketing for the product?
I’m a Product Owner, master in software engineer. I’m involved in the crypto sphere since 2016, currently helping others crypto projects as a community manager as well (proposal approved using a governance system). I love decentralization, crypto & games, so here is my motivation and why I proposed an NFT pulse index, as I will participate as an active user as well.
I worked with coinartist (social token) in the past, and have good networking, experience in creating a crypto community.
I’m an ethical person, integrity, very active in every social platform, always available for support.
The NFT Pulse Index is a capitalization-weighted index that tracks the performance of NFTs protocols across the market.
The NFT Pulse Index is a digital asset index designed to track the NFTs protocol’s performance. The index is weighted based on the value of each token’s circulating supply.
The NFT Pulse Index aims to track NFTs projects that have significant usage and show a commitment to ongoing maintenance and development, max supply, products live, assets sold on-chain, owners, users’ growth, community, governance space between owners and community, team support, volume, roadmap, not necessarily in that order.
The NFT Pulse Index initial criteria are composed of:
- The token must be available on the Ethereum blockchain, and must be an ERC20 as property.
- The token must be associated with NFT.
- Marketcap > 5M
- The token must be available on at least one (1) DEX - Decentralized Exchange.
- None of the following will be included in the index: Utility tokens, like SLP, Wrapped tokens, Tokenized derivatives, Synthetic assets, Tokens that are tied to physical assets, Tokens that represent claims on other tokens.
Token’s Supply Characteristics
Composite for two characteristics:
- Max supply e.g $RARI $MEME $DEGO $SAND $MANA - Characteristic 1
- Bonding curve $GHST less price fluctuation, Characteristics 2
Final composition for that proposal
6 of 10 top in volume - https://www.coingecko.com/en?category_id=non-fungible-tokens-nft
- RARI has a max supply of 25M tokens - Top 1 in assets, Top 11 in Owners (14.070) - MC > 5M
- DEGO has a max supply of 9.7M tokens - Top 5 in Owners (27.952) - CMC > 5M
- SAND has a max supply of 3B tokens - Top 39 in Owners (2.850), Total assets (54.094) - MC > 5M
- MEME has a max supply of 28K tokens and partnership with MANA - Owners (3.340) - MC > 5M
- MANA has a high supply, considering 5% of the allocation. - MC > 5M
- GHST Bonding curve, Top 1 in volume, less price fluctuation - MC > 5M
Project’s Traction Characteristics
- The project must have a clear product (mainnet, testnet, working).
- The project’s protocol must have significant usage.
- The protocol or product must have been launched at least 90 days.
- The protocol or project must not be insolvent.
Protocol’s User Safety Characteristics
- The protocol must have been operating long enough to create a consensus about its safety in the NFT community.
- The selected tokens must have sufficient liquidity across a variety of trading platforms.
The first release is based on the DPI formula:
- Circulating Supply is the number of tokens circulating the last time circulating supply was determined. Then it will use Etherscan contract addresses to check real supply as a reference source.
- Price is the market price of the token in USD.
Credits to the DPI team.
The index is maintained monthly in two phases:
- Methodology checks (Author + NFT expert).
- Circulating Supply Determination: The NFT Pulse Index will use as a reference etherscan contract to use their circulating supply number.
- Additions and deletions: The tokens being added and deleted from the index calculation are determined in (30 days recurring, no matter if the month has 31 days or 28 days) and published the community the result.
(7) Fee Split
• 70% Index Coop to manage and implement that NFTX Index.
• 20% Proposer (3 work hours daily + maintenance + research + networking with NFT community involved + methodology checks)
• 10% NFT expert voted by the community, renewed quarterly.
- NFT website, NFT discord, Partnership.
- Set website integration.
- Automate the methodology to minimize author fees, and give more fees to Index Coop.
- Add a form and formal listing process for new NFT protocols, and research as Exchanges.