Nibbl’s editionization protocol recap

We are bullish on NFT finance here at Nibbl. With the success of collective NFT ownership and building a successful product around the same, we are now taking on a new challenge in NFT finance. As we shift our focus into a new direction, let’s take a recap of Nibbl’s editionization protocol and see why we are betting on NFT finance as the future.

We were the first protocol to lock NFTs in smart contracts and create editions of the locked NFT. Compared to other digital assets, NFTs are associated with illiquidity. We ensured simpler buyouts and guaranteed liquidity using our unique bonding curve mechanism.

Nibbl’s bonding curve mechanism

A bonding curve establishes a mathematical link between token supply and price. Consider this example: currentPrice = tokenSupply². When purchasing an ION, subsequent buyers pay a slightly increased price for each unit, potentially benefiting early investors. As awareness and demand grow, the value of each ION gradually rises along the bonding curve. This allows early investors to sell their IONs at a higher price, resulting in profits.

Due to this design, original NFT owners could add liquidity directly to the platform without worrying about complications like impermanent loss. With this, ION owners could always find sufficient liquidity to buy IONs to get into the NFT community without high slippage. They were also guaranteed to find liquidity when they wanted to sell their IONs.

What made Nibbl’s buyout mechanism special?

Buyout Countdown — The original NFT curator can designate a specific period during which a buyout cannot be initiated by anyone, thus maintaining the NFT’s editionized status.

Valuation-based Buyout — Eliminating the need for gas fees for voting, the buyout operates on a valuation directly derived from the bonding curve.

Open Buyout Trigger — Anyone can initiate a buyout by adding money at the current buyout valuation of the IONs, as long as the timer is active.

Community Rejection Option — Unlike an all-or-nothing approach, the community possesses the ability to decline a buyout proposal within a 4-day window following the buyout initiation. In the event of rejection, the NFT remains in its editionized state.

Through this, we made sure that collectors got exposure to high-value NFTs.

We also offered tools to have your own token-gated NFT community.

Let’s take a look at Nibbl’s achievements so far:

What happens to the “editionize” feature and the existing edition holders?

Although we are starting to look at a different product, the editionization protocol is not shutting down. Nothing changes, as users can come and editionize their NFT as before. Holders can keep initiating buyouts for their editions as well. To cut it short, everything stays the same for Nibbl’s editionization product as it was.

Coming up:

We are working on an exciting product that we think is bound to change the NFT finance landscape.

Stay tuned and keep watching this space for more updates!

Learn more about Nibbl by visiting our website. You can also join our Discord and Telegram. Follow us on Twitter.