Our native governance and utility token, $gNFT, is being replaced. Holders of $gNFT will be compensated with airdrops of our new token, $NFTPRO, based on their historical holdings through a series of snapshots intended to provide fair compensation to loyal supporters while preventing oppurtunistic trades following the release of this article.
We’ll start by pointing out that there hasn’t been any exploits, hacks or other problems that would put anyone at any direct risk. $gNFT is simply ‘broken’ and our best solution is to issue a new token; addressing the problems with the first one. It’s also worth noting that $gNFT, and the NFThub platform, have been described by our team as being experimental from the start.
Here’s what we’ll cover:
- Broken? How?
- Why did the token die?
- Compensation through airdrops.
- $NFTPRO Overview
- $NFTPRO Presale, IDO, and innovative INO
$gNFT is Broken —
In March of this year, NFThub.com launched quietly into our public beta. A short time after, having already had plans for NFT farming and more traditional yield farming features, we laid out our tokenomics plans and launched a public, 24h IDO on DxSale Network, which began the learning adventure that has come from the past ~6 months. $gNFT is being replaced with $NFTPRO (NFThub Protocol) to become our universal ecosystem token.
> TLDR 1— The contract can’t be verified, several DeFi partnerships encountered various adverse events, and we were unaware of many things we’ve since learned (and made a couple decisions that turned out to be mistakes)
- By $gNFT being broken, what’s meant is this: At the time (mid April) that it was deployed, the Polygon ecosystem was a very different space. There were about 3% of the active wallets there are today, a handful of established dapps, and polygonscan didn’t exist. Being a self-funded and very small team, we didn’t have a developer available when the token was deployed; we simply followed a youtube tutorial and created the token in Remix. Problem being, now that Polygonscan is the choice in block explorers for the network, a lot of things hinge on their platform is the authority for contract info for projects. Because we’re rather non-technical and didn’t have Polygonscan in mind, we didn’t think to save the contract source code in the interest of verifying the contract; and we’ve tried to no avail to replicate the code in a sufficient manner to verify the contract. Since our contract isn’t verified, its very unlikely (if at all possible) to have the token listed on Coingecko, CoinMarketCap, etc.; so that in ittself is a major issue.
> TLDR 2 — We don’t have the token source code so can’t verify it to be listed on Coingecko or CMC
2. As a method of distribuing the tokens to a wider community, and in doing so bring more traffic to NFThub, we partenered with a few different DeFi platforms; Polycake, Polypingu, and Polycat were the intial few.
Polycake was a fairly standard farm, but the standard “farm, dump, farm, dump” routine led to the devaluaion of their token and loss of interest from users. The “bakery pool” for $gNFT still has a large quantity locked in the contract.
Polypingu were donating 20% of the deposit fees to environmental conservation efforts at the poles, and we sought to support that intitiative by providing a reduction in sell pressure so their platform wouldn’t burn through its value so quickly and established an NFT farm, which would have rewarded users for staking $gNFT/$PINGU LP tokens. When opening the NFT farm, Polypingu’s team and ours matched value with our tokens to open liquidity, to the effect of $10k. In a very unfortunate turn of events, which many people now refer to as ‘Titanfall’, another yield farming platform, Iron Finance, suffered a fatal exploit, resulting in the loss of (overall) around $2b of user’s funds. Some of the Polypingu team were heavily leveraged into the $TITAN farms and lost all of it, causing them to completely exit the DeFi space, leaving the remaining team without a developer, and without much capital to update/expand the platform. The days/weeks following Titanfall saw hundreds of people trading/selling whatever they could to capitulate and gain back some of their losses; when combined with the exit by the devs, $PINGU rapidly went to zero, and pulled $gNFT down with it because when the liquidity pool was established, the value of $PINGU was 5x that of $gNFT.
Polycat, now likely the longest surviving yield farm on the Polygon network, simply didn’t have many users interested in NFTs (before they really took off this summer). They deployed a “Fish Tank” which we supplied with rewards, letting people earn $gNFT by staking $FISH. The though was that it would expose their 20k audience to our project, but instead, 8/10 users were simply dumping it daily.
The last problematic DeFi strategy was the GYSR protocol, who we’ve had a productive relationship since some months before the public beta of NFThub had even been released. It’s likely that we’re largely responsible for their presence on Polygon, and for a time, 90% of their Polygon deployments TVL was in our pools. As with Polycat, the problem wasn’t on their side as much as ours. When calculating/supplying the tokens for distribution, we failed to notice we had added one too many zeroes, and the farm started at about 60k% APR. The nature of smart contracts prevented us from modifying or stopping the rewards, so people took profits with pretty large volumes of tokens.
The final problem with $gNFT in its current state is that we have no way to “reset” the liquidity pools; the significant portion of the existing liquidity that was supplied when listing the token was locked for just over 6 months, meaning there’s another month at least before it unlocks. Additionally, ~75% of the token supply is locked behind a vesting schedule.
We’re confident that the creation and updated tokenomics design of $NFTPRO (which is already verified) is the best available solution.
TLDR: 30mm tokens useable for governance, exclusive NFTs/merch, yield farming, NFT farming, lossless “lotteries” and more. s.
NFT Protocol tokens, $NFTPRO, will function in much the same way as $gNFT does currently, with a few important differences. First and foremost, we’ve already verified the token contract, so we won’t run into the same problem with listings.
Another important distinction is the fact the $NFTPRO is a reflect and autoliquidity token. Each transaction will incur a 5% tax, 3% to be added to liquidity, and 2% distributed amongst current holders.
$NFTPRO has a total supply of 30mm, with the distribution model available in more detail here. We’re applying to a few different well positioned IDO platforms on the Polygon network, and will be holding a uniqely designed NFT sale as well.
The token will serve as governance rights in the NFThub DAO, be available to use as purchasing power for adspace on-site, various NFTs, as well as the option to stake single-tokens or select liquidity pairs to earn NFTs, partner tokens, or exclusive rewards airdropped to long-term stakers. Additionally, we aim to support the efforts of quality NFT projects and platforms in the Polygon ecosystem who allow their userbase to utilize $NFTPRO within their dapp. More use-cases that are currently implemented/planned can be found on the tokenomics page at NFThub, and we aim to continue to find/develop new ways for our community to benefit from participation and ownership within our ecosystem.
4mm tokens offered as a public IDO for liquidity generation; with dates/platform TBD. Tokens from NFT sales at the best value, with a timelock to prevent dump
During the public IDO, held either on one of the applied-for launchpads, or in a decentralized nature on 1–3 open IDO options, there will be an available supply of 4mm tokens, offered at a valuation of $4.50; a 10% reduction from the $5 listing price at which we’ll open the initial liquidity pool on a TBD primary dex. *(or the dex native to the IDO launchpad we work with).
We’re also exploring a couple of potential strategies to utilize NFTs in our early token distribution strategy; which will account for a maximum 1mm additional tokens available. One potential method is to utilize the Genesis Shards platform, and offer tiered NFTs that contain varying token quantities. We’ve actually just become aware of the ability for anyone to create genesis shard NFTs, so need to further research the platform.
Another option is to leverage the Charged Particles protocol. With this method, we’d provide an “order form” , or possibly a placeholder NFT, for the creation of up to 1000 ‘Founders Card’ NFTs. These would be created as editioned works from various artists in our community, will contain 500 $NFTPRO, and be sold for 0.5 ETH. At the time of this writing, this would mean the included tokens would be obtained for around $3 each. It’s also possible that we’ll implement both of these methods for the NFT sales. Whether one or both of these methods, or possibly another alternative, are used for the NFT sales, the included tokens will be locked, or staggered, to be fully released after one year.
The Founder’s Card NFTs will serve as a ‘membership’ signifier to our planned VIP program. While NFThub will always be a free community resource, fundamental supporters and contributors (not solely financially determined) will be able to access additional ‘quality of life’ focused features, exclusive NFT and merch drops, and will have early access to new features, projects, and experiments throughout our ecosystem. We will also have a lower cost entry point to the VIP program, provided via NFT, which won’t include the underlying $NFTPRO, and may offer a slightly lower level of benefits.
Up to 1.5mm tokens will be distributed amongst current and recent holders of $gNFT, based on a proportional value in relation to the total number of tokens to be provided as compensation. These tokens will be released in 3 seperate batches, 350k immediately after the IDO concludes, 500k 90 days later, and 650k another 90 days beyond that.*
More info and details will be released as soon as we have them to offer. Stay up to date on all things NFThub by joining our discord at https://discord.io/nft
*subject to modification or change based on snapshot details.
NFThub is a multi-faceted ecosystem focused on making NFT’s more accessible and simpler to navigate. Some core features include a project registry and event calendar (both with open submissions from the community), high-quality educational content with upcoming gamification features, and a built-in social network. The project is managed by a DAO, and is built by genuine NFT experts with years of experience in the space. Initially started in late spring of 2020 to be an alternative to the then-available NFT marketplace platforms, it’s been adapted to focus on prominent needs within the growing NFT industry.