The NFT Economy constructs the optimal solution, the new dynamics of StandardChain
“The concept of virtual economy has evolved from the development of the term virtual capital (fictitious capital) proposed by Marx.In the third volume of Das Kapital, Marx believed that virtual capital (including stocks and bonds) was produced under the interaction of the bank credit system and lending capital.The real economy represented by virtual capital has entered the production process or participated in the consumption field. It is itself a buying and selling asset that can bring value-added income to the holder.”
The NFT frenzy, indeed, has swept the world.Nike, the world’s largest sneaker brand, announced in December 2021 that it spent money to buy NFT RTFKT, a virtual shoe company; its biggest rival, Adidas, worked with NFT Community boring Ape to sell about 30,000 NFT, giving buyers exclusive clothing and community tickets.
Even Visa, a global credit card leader, spent $150,000 to buy an NFT avatar and claim to officially enter the NFT space.It is also a “rich paradise” for stars and artists.Christie’s auctioned off American digital artist Beeple’s NFT last year, worth nearly $700 million, making it the third most expensive work by a living artist.On January 1, singer Jay Chou’s PhantaBear NFT went on sale for $10 million a second, probably making more and faster than he gave a concert.
NFT provides a [original traceability] that can gain social popularity. This non-homogenization brings real power and transaction attributes will greatly stimulate the enthusiasm of social creators, and non-homogenized token digital works have thus become the next hot spot of the digital economy in the content industry.
On December 31,2021, Jay Chou and Hannah Quinlivan respectively posted their NFT image of Phanta Bear (Phantom Bear) on social media platforms, adding that it was “the first special gift he has received”.Data show that as of January 3,2022, Beijing time, 4,500 people have owned Phantom Bear NFT, and the trading volume of NFT products has reached 1,800 Etherdollars, equivalent to 68.1932 million dollars.As the metaverse market has gradually entered the public eye, many NFT product trading platforms have been spawned, and the emergence of NFT has realized the asset of virtual goods.NFT can break away from the game platform and allow users to freely trade in related NFT assets.NFT can give digital products uniqueness, making it scarcer, and scarcity is the most effective Pricer, so NFT promotes the brand premium.
In the face of the NFT market, we need to pay attention to: liquidity.How to improve trading liquidity, StandardChain after investigation, the current mainstream solution is to fragmentation NFT to create a secondary market, make NFT buyers and sellers of goods easier, but this has not completely solved the fundamental problem of liquidity, the reason is that we have not under information asymmetry or incomplete conditions design contract to deal with price and incentive problem.At present, the solution proposed by Uniswap V3 is innovative with NFT as the LP. The NFT + DeFi model expands the liquidity of NFT assets, but it still needs iterative evolution to ensure the transparency and fairness of the market.
Based on the above problems, StandardChain combined with the combination of self-ecology, designed a complete set of smart contract auction mechanism to solve the value balance, and the mechanism includes three elements:
1、 Scope of the buyer’s bidding
2、 Probability that the buyer obtains the NFT
3、 The amount of payment determined for each buyer.
This mechanism of StandardChain should also include the bidding strategy of the disclosure principle (revelation principle) guaranteed not to deviate from the true estimation. By displaying the incentive compatibility conditions, the information asymmetry exposes the true information through the optimization, and the seller obtains the maximum income and the buyer obtains the optimal true valuation.
With each breakthrough in a key technology, the virtual reality meta-universe-related industries will explode again after another.
The current virtual world games are only the earliest prototype of the metaverse, and the future metaverse will be cross-platform and entirely created by users.Blockchain is a key technology in the metacaverse, which will build user identity and financial infrastructure. At the same time, StandardChain will run new economic systems through smart contracts, and its virtual native assets in the metacaverse will also take NFT as the main carrier.