Liquidity mining is about to enlighten NFT
In the past two years, the NFT (non-fungible token) market has been steadily growing. Applications in collections, games, digital art, domain names and other fields emerged, and many developers joined the NFT wave. Generally speaking, although NFT is cool, compared to fungible tokens, its liquidity is still relatively poor. The number of art collection projects for most of the market, and the scale is still small. The entertainment value of the NFT project is still far greater than the real value.
How can NFT attract more participants? GDF believes that the existing NFT standards still have defects, and the underlying tools and analysis tools are not perfect. Once the infrastructure is gradually improved, it will work out various possibilities and derive all kinds of financial products, just like DeFi LEGO.
Incorporating new technologies in the fields of “differential technology” and “DeFi”, GoodData will adopt equity fragmentation and liquidity mining in the data field. Equity fragmentation can allow more people to participate in the expensive data NFT with a smaller share, and liquidity mining will enable participants to have a fairer chance and more motivation to participate in the NFT ecology in the incentive.
Liquidity mining refers to the practice of mortgaging or lending encrypted assets to generate high returns or rewards in the form of additional cryptocurrency. GoodData’s data NFT liquidity mining will be an innovative practice, but also an incentive mechanism. The high income brought by liquidity mining at least provides users with a variety of opportunities to participate in NFT.
- Data owners register data NFT for liquidity mining. Thus, the price of data is no longer monopolized by the data owner, but also depends on the market participation. More participants means higher value of the data itself, but also increasing incentive benefits.
- On the data NFT trading platform of GoodData, as long as publishing data or participating in MPC’s computing power contribution, users can have a mining pool, own ERC20 token, and start earning right away. In this way, NFT’s liquidity trading momentum is full, and NFT products can be efficiently transferred and quickly monetized.
The high annualized yield of GoodData’s liquidity mining will encourage liquidity providers to invest their encrypted assets or lock them in the NFT liquidity pool based on smart contracts. As the liquidity pool increases, the transaction activity increases, and the return value of data NFT issuance will also continue to rise.
GoodData, which uses MPC technology, can encrypt data in various formats, which provides a feasible security foundation for data equity. Data NFT has a flow scenario at the beginning of its birth, which enables the circulation NFT to find a relatively stable primary market.
At the same time, in order to further enhance the value of NFT’s liquidity mining and let miners obtain sustainable power, the GoodData project also adds a reputation mechanism for NFT’s liquidity miners to make liquidity mining more competitive. In the NFT ecosystem of GoodData, users can contribute to it in a variety of different roles, and get more rewards. The rich incentives will drive more people to enter the data NFT ecosystem of GoodData, and gradually establish a balanced NFT market that can expand data protection and sharing.
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