Introducing NFT Mining into the DMM Ecosystem
After the recent launch of our NFT purchasing platform, which already locked up 1.5 million DMG, we are proud to announce the next impactful addition to the asset introduction ecosystem. With the launch of NFT mining, mToken holders will now be able to stake their mTokens and mine for NFTs!
How will Mining NFTs work?
To mine for an NFT, a user will stake their mTokens for a specific amount of time. Users can stake any single mToken they hold in their wallet and would like to use to mine for these NFTs. The process of mining for an NFT goes as follows:
- The NFT is listed for sale on our purchase page.
- If the user decides to stake for the NFT, the value of mTokens needed to mine for the NFT will be made visible. For example, a U.S. Affiliate NFT requires about $511k worth of mTokens (at the time of writing) to be locked to earn the amplified discount.
- Next, the user starts staking their selected mToken for 12 or 18 months (user can select the period), buys the NFT with the amplified discount, and the Foundation price matches the remaining 50% of the DMG (this price matching is explained in our NFT deep dive).
- The user immediately receives the NFT once the transaction settles. Their mTokens are locked for 12 to 18 months, and DMG has been spent on purchasing them.
The primary benefit of staking mTokens instead of buying the NFT outright is that a user will be able to amplify the discount rate from 90% to (up to) 99%. Looking at an example, staking your mTokens for 12 months will give you a 95% discount, and for 18 months will provide you with a 99% discount (at the time of launch). This amplified discount even has a more favorable decay function applied to it. Over the 18-month discount decay period, the discounts decay to 25% for the 12-month lock-up and 50% for the 18 months lock-up. Meaning, 18 months from now, once the discount has been exhausted, users will still be able to stake mTokens to purchase NFTs for a considerable discount. Keep in mind, after the staking period is done, the user will receive their mTokens again. If the user transfers the NFT to another party or wallet throughout the staking period, the staked mTokens remain owned. There is no way to transfer staked mTokens to another user at this time.
Where can I Mine for the NFTs?
The NFT purchasing portal can be found here. When new NFTs are released, they will be visible on this purchasing portal. If a user would like to mine for an NFT, they can do so through this page. To do so, the user must select a country they would like to mint the NFT and then press “begin staking” instead of locking up DMG.
Why is this Important?
NFTs are essential to the ecosystem as they will lock up massive amounts of DMG tokens. We have already seen this with the 1.5 million DMG tokens locked from just 5 NFTs. These NFTs will significantly impact the circulating supply. NFT mining is vital, as it incentivizes the purchasing of mTokens and long term holding of them. This is important as it will help the ecosystem expand and allow the DMMF to introduce new asset classes and extend its utility. NFT mining also will enable users who don’t want to lock up a lot of their DMG to have still the ability to mint their NFT while incentivizing the long term holding of mTokens.
Overall, the NFTs will provide a valuable mechanism that will help bridge the legacy finance system with the DMM ecosystem and further deflate the circulating supply.
About DMM
DeFi Money Market (DMM) is an ecosystem built on the Ethereum blockchain that bridges interest-generating real-world assets into the Decentralized Finance (DeFi) ecosystem in a transparent, trust-minimized, overcollateralized, and permissionless manner.
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