NFTs need to be able to increase and or maintain their value over time, the world needs more art evocative art that changes the way people think about society, the environment and the world around them, and in real life public good organizations need more funding.
Current Problems With NFT Marketplaces
No Return for Supporting Public Good
DoinGud is one of the most prominent examples of an NFT marketplace for public good. However, it does not have a token system or reward creators for donating part of what they earn to public good.
When financially supporting public good, the current standard is to receive a receipt of donation. This receipt does not provide a return on the money just sent in support of the public good.
Decline in NFT Value
In most NFT marketplaces an NFT is only able to be traded when another person wants it. If no one wants that NFT then it is held until a time in the future when someone does, collapsing in price over time with little to no demand.
Wash Trading for Tokens
NFT marketplaces (like X2Y2 and Looksrare) that distribute tokens for buying and selling of NFTs have been able to take a large percentage of Opensea’s market share. However, wash trading of NFTs to get tokens has become a problem in these marketplaces.
ROI For Public Good
Giveth rewards people for donating to public good (with the Giv token and eventually tokens for each org on their platform) and has expressed interest in creating an NFT marketplace to further support organizations on their platform. This marketplace is the first marketplace to step up to meet this demand.
Each time a buy or sell happens and a percent of the trade is sent to support an organization on Giveth, it also furthers the artists GIV stream. This incentivizes the artist to continue creating artwork for public good.
When rewarding people for interacting on the marketplace instead of the tokens being sent directly to wallets, the tokens are embedded in the NFTs themselves. These tokens are time locked so that after a set amount of time the tokens embedded can be taken and traded. During the time that the tokens are embedded in the NFT, the NFT has value not only for the art of the NFT but also for the tokens locked inside. The tokens that are locked inside the NFT can be yield bearing assets, so the NFT grows in value over time as the yield increases. Each individual that interacts on our marketplace will have 1 FeNXT NFT that they choose from their NFT collection. As the FeNXT NFTs grow in value, so does their potential to support public good.
Through Return to Green, Avano has tested the willingness of artists and purchasers of NFTs to support public good. 50+ artists donated artwork to be auctioned off for donations to environmental and mental health organizations on Giveth. Over 5.5 ETH was brought in and donated to organizations on Giveth through 2 events.
If NFT marketplaces were to have ingrained 1% of transaction fees going to public goods, a little over USD $1 billion would have gone to public goods since 2017. If we were to gain the market share of organizations like Looksrare, Opensea then we’d be able to channel to public goods per day the same amount we are looking to raise for the MVP (data backing statements above and further market validation: NFT Market Overview ).
We are needing to raise $150,000 for the creation of an MVP for this marketplace. The fund use is described below.
Avano contracted Raid Guild for a design sprint of a public good NFT marketplace- called FeNXT. Bingo (Designer), St4rgard3n (Solidity), Georgeh (FrontEnd), Alicibades (BackEnd) and Sasquatch (Coordination) completed the design sprint with myself, Terexitarius. From the sprint raid Guild estimates $94,225wxDAI needed to complete the MVP of the marketplace in a 12 week timeframe. We are aiming to raise the funds needed for the MVP creation through grants by organizations that’d like to further support the public good.
The establishment of a legal entity for our community that is able to legally issue tokens and comply with regulations will need to be done. This funding is used to recoup these expenses (as the establishment will occur before the distribution of tokens). $20,0000 is the estimated cost if done through Otonomos or another such organization.
We will want to partner with other decentralized organizations and news outlets to get into the public’s perspective. This funding will be used for that. $30,000 is the estimated cost. For further information on our marketing strategy see community outreach in our whitepaper. We will work with decentralized organizations as much as possible with this, such as Cre8r.
Any unexpected costs should be covered in the contingencies budget. The initial budget for the MVP is $5,775
We want the feedback of the community as to what resources (monetarily and otherwise) they can contribute to the creation of the MVP for the FeNXT NFT Marketplace. We will be asking various organizations for monetary support and if we as a community can come together we can get some major support for public good through this NFT marketplace.
Further info can be found in our whitepaper.