NFT Pulse Index

Governance Proposal
23

Interesting questions.

The concept of “NFT” is broad and encompasses multiple use-cases. It’s almost as broad as the concept of “ERC20” (or could become as broad).
Examples :

  1. An ENS domain name is an NFT.
  2. A tokenized physical good (real estate share for example) car totally be an NFT.
  3. yInsure, as far as I understand, is an NFT-ized version of some Nexus Mutual Covers.
  4. In-game items, skins or rights (ex: parcels in SAND or MANA).
  5. Art pieces.
  6. Branded scarce items (ex: virtual card of your favorite football player emitted by the club).

There are probably more types, but I can already distinguish a subcategory : The collectibles.

(2) and (3) probably don’t really fit in this category even though they might or might not be NFTs.
(1) is a complicated one, as a domain name can be used both productively or speculatively. However you can also argue that an in-game item can also be used “productively” given that you care enough about the game.
Thus, I’d consider (1), (4), (5) and (6) to fit into the Collectibles category.

Following this reasoning, the concept of Collectibles is still large but kind of gives an indicator about which projects are eligible or not. The concept only overlaps with @DarkForestCapital’s Metaverse Index Proposal on point (4) (in-game items), but that section is also one that features lots of tokens such as $MANA or $SAND. Today those are used as a currency to purchase virtual items (as far as I understand). If we exclude those, we decide the exclude tokens that are used as currency to purchase NFTs. Thus, do we exclude $MEME as well (one doesn’t use directly $MEME to purchase NFTs but needs to stake them) ? Or do we focus on generalized NFT marketplaces governance tokens such as $RARI (but it doesn’t only propose collectibles) ?

Intuitively, I’d said that anything that is linked to collectibles should be eligible, regardless of a strong intersection with the Metaverse Index - weighting could be totally different which still makes it a totally different index. If we choose to exclude what intersects with a Metaverse Index, then maybe it’s a little bit too soon to talk about an NFT/Collectibles Index.

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