Non-fungible tokens, or NFTs, are big business. In 2021 alone, trading volumes for the vast majority of top NFT projects skyrocketed amid surging demand for digital collectibles and other non-fungible assets.
In total, NFT trading volumes in the last three months alone, approximately equaled that seen throughout the entirety of 2020, demonstrating rampant demand for non-fungible assets.
But while NFTs have been around for close to half a decade, the way they are bought, sold, and used, didn’t change a great deal — that is, until very recently.
Now, thanks to a fresh wave of innovation and burgeoning interest in NFTs, a new set of platforms have begun to extract the full potential of this asset class, and are now looking to disrupt the status quo in the NFT space.
Spores Network Opens Fractional NFTs To All
Right now, if you want to purchase an NFT, then you’ll likely need to purchase a whole one. This is because NFTs are non-divisible by design — you either have a whole one or you don’t.
This can be a problem, since many NFTs command a hefty sum on the open market, meaning only well-heeled investors can get their hands on some of the more desirable NFTs.
But that might soon be set to change, thanks to the innovation of NFT ‘fractionalization’ — powered by a new platform known as Spores Network.
Spores enables NFT creators and owners to fractionalize their tokens into multiple units, known simply as NFT fractions. Various individuals can then own a fraction of the NFT, essentially sharing ownership of it — thereby making even big-ticket NFTs more accessible.
But more than this, Spores posits an elegant solution to the problem of liquidity by providing a powerful decentralized exchange where NFTs and NFT fractions can be traded with minimal fees. It also allows NFTs to be traded and swapped across multiple blockchains (e.g. Ethereum, Binance Smart Chain, Polkadot, etc.,), helping users leverage the benefits and liquidity of an entire cross-chain ecosystem.
By boosting the accessibility and liquidity of NFTs, Spores hopes to empower token creators and investors — helping them better monetize their assets and use them throughout the broader DeFi ecosystem.
NFTs Gain New Functionality With DeFi
Right now, the vast majority of NFTs are associated with digital works of art — that is, they are desirable because they represent sought-after artworks, typically created by a well-known artist.
But that’s beginning to change, as more and more platforms look to pull out the untapped potential of NFTs by embedding other unique capabilities. Much of this innovation is being made in the yield farm space, as different projects look to NFTs as a way to incentivize and reward users, while giving them an additional avenue to speculate.
FarmHero exemplifies this trend perfectly with its yield-bearing NFTs. The platform’s first set of NFTs, known as Genesis NFTs, include a unique property that allows holders to passively earn yield in the form of $HERO tokens — these are the native utility tokens of the FarmHero ecosystem.
As with many NFTs, these are separated into different rarity tiers, with the current top tier NFT — known as “DOGGY TO MOON” — entitling the holder to 0.00088% of all newly minted $HERO with each block. As a result, simply holding this token is equivalent to holding a permanent passive income stream — if you can get your hands on one that is, due to their scarcity.
Moreover, FarmHero looks to introduce a range of other functional NFTs in future, helping to demonstrate some of the world’s first utility NFTs.
Simplifying NFT Creation With HoDooi
One of the major challenges facing the NFT industry today is accessibility — it can be difficult to create NFTs and help them gain exposure, while there are often challenges sourcing liquidity for NFTs on the secondary market.
HoDooi, an all-in-one NFT ecosystem, looks to address this and a plethora of other challenges by engineering a holistic solution for NFT creators, collectors, and traders. Through HoDooi, users will be able to easily create NFTs based on multiple different blockchains through a single unified interface — setting parameters like scarcity, content to tokenize, and preview options (e.g. private or public). All with zero platform fees.
Creators can then easily sell their NFTs on HoDooi’s decentralized marketplace — benefiting from its verified creator and seller program, reward scheme, paid advertising features, and more.
Beyond this, HoDooi addresses the problem of resellability in the NFT market by building in a dedicated resell vertical to help users easily resell their NFTs across multiple blockchains through a single platform.
HoDooi gives users the opportunity to unlock further benefits and features — such as reduced fees, NFT rewards, and staking yields — through a dedicated membership program, which sees users sorted into one of four tiers based on the number of HOD tokens staked.
The platform is currently part-way through its 2021 development roadmap but plans to kick off with a bang in July 2021 with an NFT drop in collaboration with boxing heavyweight champion Tyson Fury.
Image by A M Hasan Nasim from Pixabay