$EARNFT — Universal Rewards Currency || AMA with Creator Dan Novaes
The time has come, and we are here with the $EARNFT AMA results, where we took a deep dive into questions fielded from the community about our highly anticipated Play-to-Earn EARNFT NETWORK, BLU3CHIP Mobile NFT Sale, ENFTs, and more. Similar to the last AMA we held, we decided to record our session to provide an easy-to-digest format where we can expand on some of your questions. Because a number of questions were very similar, and had significant overlap, we covered some topics more broadly. If you do not see your specific question, be sure to watch the video, and read the blog in its entirety — as it is likely covered at some point.
Any remaining questions, we’re providing the answers for here in this document. There were some exceptionally though-provoking questions, and we’re thrilled that we had such strong participation for this event. Without further delay, let’s get into the questions:
Q: Given complexity of the token model, is this model sustainable and scalable given EARNFT will integrate many more reward point companies into its ecosystem? Have you done any gamified test over this model to know model stress, increase and decrease in circulation, or treasury running out of tokens…etc?
We do not anticipate the treasury running out of tokens due to the nature of how burning ENFTs works. We have carefully considered the long term viability, and do not foresee this being a problem. The loot-box nature of ENFTs will inevitably pique the curiosity of those who are simply looking to acquire additional $EARNFT, thus ‘burning’ a portion of the rewards, which in turn would begin to replenish the treasury. Due to the large supply we are entrusting to the treasury, this is not likely to be a problem. And remember, as token holders, you will have the final say on how $EARNFT is used, how many are distributed, if they are distributed, and so forth. So ultimately, the collective community has autonomy and can prevent this from ever being a problem.
Q: Regarding earnings communities, have you started meetings/calls with potential partners? Could you please give us some information on this?
Our first priority is working with other Web2 rewards platforms (like Rakuten) to integrate $EARNFT into their platforms, unlocking access to potentially millions of new EARNFT NETWORK users. We anticipate as word gets out, that earning communities will begin to reach out to us as well.
Q: Which NFTs are reserved for Whitelisted participants? Are these BORED Phones, or do you have allocation for whitelisted people in every category like BORED, CAT, DOOD, etc?
The Phone Plan you will receive as a result of purchasing a BLU3CHIP Mobile NFT is random. Similar to how ENFTs work, the type of BLU3CHIP Mobile NFT will not be revealed to you until you receive the NFT. We do not even know which NFT you will receive. This is the fairest way to distribute them, and also complements the Web3 Rewards system EARNFT NETWORK has created for ENFTs.
Q: Are ENFTs tradable, and if yes, then where?
ENFTs will be tradeable, yes. We are not placing restrictions on trading them, so you are free to do whatever you want with them (including burn them — but beware, there is a vesting period!).
The $EARNFT tokens locked behind each ENFT is chosen completely at random, between 0.5–100,000 $EARNFT.
BLU3CHIP Mobile NFTs, which is a Membership NFT, will also be tradeable, will also allow you to mint a number of ENFTs for every platform drop until they are fully expended.
Q: How will you incentivize people to be part of governance?
The EARNFT Treasury will be handed off completely to token holders soon after launch. The team and advisors will not be a part of governance, but rather, the team will effectuate the building of the platform and nurturing of partnerships within the NETWORK. But ultimately, governance is completely up to token holders.
To incentivize participation, we are implementing staking as a part of governance. Those who lock their $EARNFT will receive a percentage of each and every ENFT that is burned before the vesting period of one year ends. We are also exploring additional ways to reward our token holders who participate in governance, and with the hype surrounding NFTs, we believe participation within the EARNFT NETWORK to be strong.
Q: Read a lot about GMT vs EARNFT. I understand detailed comparison, and feel that EARNFT is a much better project. Does provide GMT an edge in that they have fixed circulation unlike $EARNFT?
$EARNFT’s total supply is also fixed, so we are not introducing inflationary tokenomics. While it is true that $EARNFT will be flowing in and out of treasury into circulation, we believe wide adoption of $EARNFT and ENFTs into Web2 Platforms and communities will provide a healthy token economy, with a large portion of $EARNFT locked behind ENFTs for long periods of time.
And because you, the token holders, will have autonomy through governance on how the EARNFT Treasury uses the $EARNFT held there, the community will be able to survey and control if/when more $EARNFT are awarded in grants. The way we created the network is to provide an array of means for $EARNFT to ebb and flow through treasury through methods such as:
- Vesting Penalties
- Royalty fees for selling Membership NFTs
- Grants
- Governance proposals
- Number of $EARNFT locked behind ENFTs can be changed through proposals
- Burning $EARNFT
Q: Do you have plans to create a marketplace like StepN for EARNFT or Mode, where you can offer collectibles orwearables which are usable within your partner ecosystems? This will increase app downloads. Additionally, how you are going to push Mode app downloads to the global crypto audience if earning with Mode is not enabled globally?
We are in fact creating metaverse wearables as a part of our BLU3CHIP Mobile NFT Collection, and it is certainly possible that partner networks could implement these as well. In the future, other Membership NFT collections could also have similar offerings.
Regarding your second question, we welcome users from nearly every part of the world to participate within both the EARNFT NETWORK and the Mode Earn App, which is available on Android devices.
Q: Whole ecosystem of BLU3CHIP Mobile NFTs, ENFTs, $EARNFT is very complex and hard to grasp. Can you guys make 30 second explainer videos in simple language to make these things understand?
This is a fantastic idea. We’ve actually recently created several one-pagers to help illustrate these points, and we’re looking into creating videos in the near future as well. Chapters from this AMA will also be available to share for more topical explanations of the EARNFT NETWORK, $EARNFT, ENFTs, Membership NFTs, and Governance. Furthermore, we are working on explainer animations/videos right now to share with the community.
Q: Is there any legal risk in declaring that ENFTs are verified by real NFTs held in treasury?
We have been careful in purchasing NFTs where, as we understand by the terms and conditions of each NFT collections, the ultimate owner of the original NFT has the right, among other things, to create verified copies of what the NFT owner (EARNFT Treasury) has purchased.
Q: When it comes to Mode Phone, could you please tell us if you are facing cost pressures coming from supply chain disruption for chip costs? In terms of Mode Phone’s popularity and demand, can you tell us how it is going? Any particular selling channel that is drawing your attention?
We are leveraging our strong relationships with OEMs across the globe to minimize the impact of supply chain constraints. There is very positive traction across all the channels.
Q: Do you have plans to partner with gaming or Metaverse companies — which can utilize EARNFT in their ecosystem, thus diversifying the EARNFT NETWORK?
We are exploring (and open to) partnerships with essentially any company or community interested in bringing Web3 Play-to-Earn rewards into their platforms. Our goal is to make integration as seamless as possible, and expand the reach of EARNFT NETWORK.
Q: How will growth in the international market will affect $EARNFT? Good or bad?
The more $EARNFT in the hands of platforms (and ultimately their users), the stronger the network will be. Growth can only serve to benefit EARNFT NETWORK, and all of its token holders.
Q: Can you please clarify what an ENFT is? Is it a derivative of NFTs you own? Is it a token or NFT? How it is generated? Who decides how many EARNFT are bundled with it? Can it be traded? How it is burned? Can we buy ENFT with EARNFT?
ENFTs are Earn-Backed NFTs, which are a derivative of a Master NFT held by the EARNFT Treasury. So, to answer your question, they are NFTs, which are generated by the EARNFT Treasury, and can be traded. The number of $EARNFT bundled with each NFT is variable between 0.5–100,000 tokens, chosen at random.
Though it may be possible to buy ENFTs with $EARNFT, the surest way to acquire ENFTs will be to redeem on the Mode Earn App, one of our partner’s apps, or to acquire a BLU3CHIP Mobile NFT for platform drops.
Q: Turning into Earn App business, can you tell us of the userbase growth is following the revenue growth?
We are thrilled to report that the Mode Earn App has been growing tremendously (over 30 million users!), with nearly a 200% year-over-year increase in revenue, including a record for our highest ever recorded revenue of nearly $4 million in March of 2022. We are now the #1 Rewards App in the Google Play Store, and continuing to grow.
Q: Slide 19 of the deck says 78% ENFTs go-to users of the platform, and 22% to Bluechip NFT holders. What about stakers who will stake their tokens for governance. What is their incentive to be the part of governance?
Token holders who stake their $EARNFT will receive rewards for participating in governance. When an ENFT is burned before the 1-year vesting period is up, 50% of the forfeited $EARNFT will go to token holders who actively participate in governance.
→Check out the EARNFT NETWORK Deck←
Q: How is the rarity of BLU3CHIP Mobile NFTs decided? Will you declare it after sale or during sale? Will buyer get random BLU3CHIP Mobile NFT, or can they select the NFT they want to buy?
The rarity of BLU3CHIP Mobile NFTs is determined by the number of BLU3CHIP Mobile NFT Phone Plans available. This information can be found on our website at earnft.com/blu3chip, but essentially ranges from 8,500 total BORED Phone NFT Plans down to just 1 WHALE Phone NFT Plans. Buyers will receive a random BLU3CHIP Mobile NFT, starting with our Dutch Auction available on June 29th of this year.
If you have not already signed up to be a part of the whitelist, be sure to do so now! Spots are limited. Sign up at earnft.com/blu3chip.
Q: What does it mean to trade or Merge ENFTs? Please explain it.
Trading NFTs is fairly straightforward: ENFT holders will be free to buy, sell, or trade in their ENFTs. We are exploring creating an NFT Marketplace directly in the Earn App, as well as providing a bridge to the Ethereum network for access to other popular marketplaces.
Merging ENFTs is being implemented as a feature for holders who would like to combine their ENFTs, and the $EARNFT behind them, into a single merged ENFT as a means to keep their wallets easier to manage. Should someone hold a large number of ENFTs, managing them could be quite cumbersome, so we are offering this as a quality of life feature to solve that problem.
That’s all for now! We’d like to thank each and every one of you for participating in the AMA. The questions were extremely well thought out, and we received a great deal of very interesting suggestions to help propel EARNFT NETWORK forward within the Web3 rewards space. We’ll host another AMA in the near future, so be sure to keep an eye on our public channels for more information regarding the dates for these events.
Psst…have your joined our Discord yet? It’s growing tremendously. Don’t miss out on FREE ENFT DROPs, exclusive events & games, and great conversation.
We look forward to seeing you there.
— Mode Earn Team
[PLEASE READ] Important legal disclaimer: No money or other consideration is being solicited by this communique, and if sent in response, will not be accepted. Our discussion may contain forward-looking statements that are based on our beliefs and assumptions and on information currently available to management. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “is designed to,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties, assumptions, and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each such forward-looking statement, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements include, but are not limited to, statements about developing and designing the Current network, including the $CRNC token and its future utility; the anticipated development and growth of the Current Network; maintaining and expanding our base of users; our anticipated growth and growth strategies and our ability to effectively manage that growth and effect these strategies; our expectations regarding regulatory developments and their effect on the Current Network, including the ability of applications on our network to develop a user base and a successful business model; and potential future listings on an exchange or ATS. We cannot assure you that the forward-looking statements will prove to be accurate. Furthermore, if the forward-looking statements prove inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. We undertake no obligation to update any forward-looking statements publicly, whether as a result of new information, future events, or otherwise, except as required by law.
