Introducing xNFTE: A Passive Income and Revenue Sharing Asset on Layer2 by NFTEarth. The perfect start to NFTFi Summer.
NFTEarth is pleased to share the official the launch of xNFTE, a new and first of its kind - passive yield-generating asset on the Layer2 ecosystem. Using the team’s knowledge of both NFTs and DeFi - a novel mechanism for Revenue Sharing is being implemented that combines LP vote locking with NFT utility to for strong incentive alignment for the DAO and stakeholders. With the introduction of xNFTE, NFTEarth is entering a new era in NFTFi, and leading the way to show other decentralized protocols how to use NFTs and DeFi in combination to aim higher. With the target of providing enhanced opportunities for the NFTE community and the NFTEarth fam - known as Earthlings - the Revenue Sharing program is set to officially debut on June 22nd, 2023 at 00:00 UTC. Mint an Earthling before they mint out here at this URL or scan this QR code to be taken directly to the mint page: Earthling Mint Page
This Revenue Sharing program being implemented is the first of its kind in web3.
Combining a yield-bearing LP position as the locking asset, and additional rewards for longer time period locks as well as holding an Earthling NFT. NFTEarth has 4 short term means of revenue generation - which include:
DAO LPing and splitting revenue with stakers
Minting of NFTs and the fees these generate
$ETH fees generated by the newly create Raffle Application on L2
NFT marketplace fees.
The article also sheds light on the innovative vote locking system being by NFTEarth to empower token holders to ensure a fair and transparent governance process; stakers will have complete control over the governance process of NFTEarth voting going forward. The initial structure of Revenue Sharing will be of 20% of all revenue generated goes to the DAO, 40% to the Rewards Distributor Vault for stakers to claim from every week, and 40% to stakers who also hold an Earthling NFT, in the form of a weekly airdrop - or RevDrop - in the form of $USDC.
NFTEarth is thrilled to unveil xNFTE, an exciting addition to its ecosystem on the Layer2 platform. As a decentralized finance project dedicated to the world of non-fungible tokens (NFTs), NFTEarth is constantly exploring ways to enhance the experience for its users. With xNFTE, an adaptation of veBAL and veCRV, and credit to other successful protocols that have used the model in practice such as Saddle Finance and Layer2DAO, NFTEarth aims to provide a passive income, yield-generating asset, that allows token holders to earn rewards effortlessly while participating in the NFTEarth ecosystem and simply being aligned with the interests of the DAO long-term.
NFTEarth recognizes the importance of decentralized governance and aims to ensure the active participation of its community members. To achieve this, NFTEarth has implemented a unique vote locking system inspired largely by how Balancer Finance tweaked the Curve veCRV system. The team also owes credit to Sperax, the stablecoin protocol with built-in rewards, for having written the entire veCRV Python implementation in Solidity. The plan is to test many variations of what works best to continually iterate on finding new ways to reward long-term stakeholders and encourage the development of Layer2 Ethereum NFT activity through the NFTEarth ecosystem and metaverse that is being built. This system empowers token holders by allowing them to lock their Balancer LP tokens containing NFTE and yield-bearing ETH for a specific time period in exchange for voting rights and increased influence over important decisions within the NFTEarth ecosystem.
The vote locking system not only incentivizes long-term commitment and engagement but also promotes a fair and transparent governance process. By locking their xNFTE tokens, community members can actively participate in shaping the future of NFTEarth, including voting on proposals, protocol upgrades, and other key initiatives. This democratic approach reflects NFTEarth's commitment to community-driven decision-making and ensures that the interests of all stakeholders are considered.
NFTEarth's vote locking system reinforces the principles of progressive decentralization and aligns the project with the ethos of blockchain technology. It empowers the community, giving the community a direct say in the project's evolution and fostering a sense of ownership and responsibility among token holders.
With the introduction of xNFTE and the Revenue Sharing Program from NFTEarth, the NFTE system is poised to flourish in 2023 and onwards. With the implementation of the innovative vote locking system, NFTEarth is embarking on a new era on Layer2 and setting the foundation for a long and successful trajectory of growth by building what is in essence, a permanently increasing supply of liquidity. By providing a passive yield-generating asset and enabling decentralized governance, NFTEarth aims to create a vibrant and inclusive ecosystem. The launch of xNFTE and the vote locking system mark significant milestones in NFTEarth's short journey thus far towards revolutionizing the NFT space on Layer2 and becoming the worlds top destination for all things NFT related. GM fam. :)
NFTEarth, June 2023
Twitter: https://twitter.com/NFTEarth_L2
Discord: https://discord.gg/nftearth
GitHub: https://github.com/NFTEarth
Guild.xyz: https://guild.xyz/nftearth
Documentation: https://docs.nftearth.exchange
Galxe: https://galxe.com/nftearth
There are no owners, partners, shareholders or equivalent legal terms in our DAO. The DAO is not an investment, investment vehicle, stock, security bond or any other type of traditional finance model as recognized by the SEC or other regulatory organization. Token holders are not acting as members of an unincorporated association by participating in governance votes.
When used, the terms “yield”, “invest” and other similar terms are not meant to be interpreted literally. Rather, such terms are being used to draw rough, fuzzy-logic analogies between the heavily automated and mostly deterministic operations of a decentralized-finance smart contract system and the discretionary performance of traditional-finance transactions by people.
For example, ‘debt’ is a legally enforceable promise from a debtor to a creditor to pay an interest rate and eventually repay the principal. Therefore, ‘debt’ cannot exist without legal agreements and cannot be enforced without courts of law. By contrast, with NFTEarth’s revenue sharing vault, there are no legal agreements, promises of payment or courts of law, and therefore there are no debts, loans or other traditional finance transactions involved.
Instead, the NFTEarth revenue sharing vault consists of software (including embedded game-theoretic incentives and assumptions) through which people can share their tokens with smart contract systems and, under normal and expected conditions and subject to various assumptions regarding the behavioral effects of incentives, probably get their tokens back eventually, plus extra tokens, most of the time or in most cases. Unlike in traditional lending, the ‘lender’s’ financial return does not depend primarily on the creditworthiness, solvency or financial skill of the ‘borrower’ or on legal nuances such as the perfection of liens or the priority of creditor claims in a bankruptcy — it depends primarily on the incentive model assumed by the software design and how reliably the software implements that model.
Thus, the transactions you can effect through NFTEarth decentralized finance systems, while superficially similar to traditional financial transactions in some ways, are in fact very different. DeFi and TradFi each have unique costs and benefits, risks and protection mechanisms. Please bear this fact in mind, and do not use NFTEarth’s revenue sharing vault or any other system described on this website without a sufficient understanding of their unique risks and how they differ from traditional financial transactions. The only way to fully understand such risks is to have a strong understanding of the relevant technical systems and the incentive design mechanisms they embody — we strongly encourage you to review NFTEarth’s technical documentation and code before use.