AMA — NFTFY & Nodeseeds — 30/04/21

[START OF AMA]

1 — Can you briefly introduce yourself and explain how the NFTFY Fractionalization protocol work? When fractionalizing an NFT, Is it an automatic process or set by individuals?

I’m Leonardo Carvalho, CEO and co-founder of Nftfy. I’m an Electronic Engineer, but since 2018 I’ve been fully connected to the crypto market when I joined BlockchainBH as Head of innovation and founded my first startup in the crypto ecosystem. I have been recently nominated as ConsenSys Ambassador and since April of 2020, I’ve been dedicating full time to the development of Nftfy.

Nftfy is a Decentralized Application that makes it possible to fractionalize Non-Fungible Tokens (NFTs). This enables trustless sharing of ownership of NFTs, brings instant liquidity to the NFT market and opens up all the possibilities of the DeFi ecosystem for NFT holders.

It is a permissionless protocol that allows anyone to generate ERC20-compliant fungible Fractions fully backed by the NFT. This opens up a whole new market full of possibilities, including integrating the NFT Fractions into all other DeFi applications.

The Fractionalization protocol works in a totally decentralized, permissionless and trustless way. It is a simple process that only requires the user to set the cryptocurrency and value of the Exit Price, which is a simple rule that represents the maximum amount that someone needs to pay to buy the whole NFT.

After that, the NFT is staked in the Smart Contract and the ERC20-compliant Fractions are generated.
After the Fractionalization process, the user can make either a Private Offering or your own IDO using their new ERC20s. In the Private Offering, you can sell or distribute your Fractions in a private way. In the IDO, the user can create a Liquidity Bootstrapping Pool (LBP) using Balancer protocol to provide liquidity to these Fractions.

Once the LBP is created, everyone will be able to trade these Fractions in our Marketplace, with their price defined by the open market. Each Fraction will have a maximum price related to the Exit Price previously set by the user in the Fractionalization process.

2 — So what you’re saying is that once an NFT is fractionalized, the ERC20 representing the NFT could potentially be traded on DEXs such as Uniswap? Meaning NFTs in the dapp could essentially become tradable on Uniswap/Sushiswap etc? right?

Yes, right!

All the Fractions generated in Nftfy are ERC20-compliant. So they can be traded on any DEX in the DeFi ecosystem. Basically, Nftfy allows anyone to generate and launch their own ERC20 tokens with liquidity in the open market!

We believe that Balancer protocol is the best DEX to do that, as it allows the creation of different types of pools for specific situations.

3 — Can you explain what the Minimum Viable Fractionalization (MVF) in Nftfy is?

The Minimum Viable Fractionalization is composed of three main processes:‌ Fractionalization, Redeem and Claim.

The Fractionalization is the process where the user sets the Exit Price, stakes the NFT and receives the ERC20-compliant Fractions backed by the NFT.

The Redeem process happens when someone wants to buy the whole NFT. In that case, the user just needs to pay the Exit Price using Fractions and/or the cryptocurrency set in the beginning. Anyone who pays the Exit Price will receive the NFT from the stake. This payment is stored in the Smart Contract’s vault and it becomes the new backing of the remaining Fractions.

In that way, the remaining Fractions are now worth their maximum price and all the other Fraction holders are able to exchange them for a proportional amount of the value stored in the vault. This is the Claim process, in which all the other token holders will be properly remunerated.

4- Of course we are pretty sure that you are also focusing on security, could you please explain what guarantees the backing of these Fractions on the NFTs and also the rights of all the token holders? Will fractionalized NFT be locked in a smart contract?

Based on the Lex Cryptographia concept, we analyzed a Shareholders’ Agreement, which is a traditional contract that explains how the shareholders manage their interests. With that in mind, we designed our Smart Contracts that guarantee the backing of the Fractions on the NFT and the rights of all the token holders.

The NFTs are locked in the Smart Contracts and no one has any private key nor special access to them. It is a completely decentralized protocol! In order to to receive the NFT, the user must comply with the Smart Contract rules, which is basically the payment of Exit Price.

5- As a great entrepreneur you are taking care of your community also I think we would all like to know if $NFTFY is the Native Token of Nftfy what are the main uses & advantages of Holding $NFTFY Tokens? Which types of Services are offered by Nftfy to Nftfy Holders?

The $NFTFY token is a fungible ERC20 token and will be the entire basis of the economy related to Nftfy’s ecosystem.

$NFTFY will act as a liquidity base for the new Fractions generated in the protocol, and all the pools containing $NFTFY will automatically participate in our liquidity mining and rewards programs.

It is used to boost liquidity to the new ERC20s launched in the open market and it is the basis of a tokenomics designed to foment liquidity of new markets!

It will totaly make happy your community, that is very good idea about liquidity mining and rewards :)

6 — Our members of community went also through your announcement and spotted an interesting point: 5% of NFTFY tokens are used for ‘Ecosystem Fund’. Could you please develop how you expect to use this part? Is it for growing the project and implementing new ideas?

Yes, that’s exactly that!

The Nftfy Ecosystem Fund was based on the one from Balancer protocol, and it will be used to promote actions that will aggregate value to the community and increase liquidity in the Nftfy ecosystem, such as:

- Farming Programs
- Bug Bounties
- Provide incentives to the community of developers to create other software to connect to Nftfy and other DeFi and NFT protocols
- Support early-stage protocols
- Treasury reserve
- Hackathons sponsorship
- Educational Programs

Anyway, the Ecosystem Fund will be used to contribute to the DeFi and NFT ecosystems in general, bringing many benefits to the community.

Thanks Leonardo, that gives us a great overview of things to come, it’s great you want to support early stage protocols.

We’ll have one last question for you:

7 — Could you please give some details on the upcoming NFTFY DAO?

The DAO Treasury was based on the Uniswap’s one. It has the major allocation of NFTFY tokens and it will be managed by a DAO. We are still analyzing the best manner to implement it regarding the management, legal restrictions and operational details.

The DAO Treasury is also in a 6-year vesting period and it will remain untouched until the governance systems are defined and implemented. It is also a good way to learn from the market and get to know the best initiatives being created, always trying to take the best actions.

A curious detail is that the DAO Treasury will not be only composed of NFTFY tokens. It will also contain many ERC20 and ERC721 tokens, in addition to Liquidity Pool Tokens.

After the official launch of Nftfy, we will provide more information about that.

Thanks ! We look forward to keep supporting NFTFY — remember guys, IDO is on Poolz on 5th May! Very soon!

Looking forward to that!

See you soon!!!

Please join the NFTFY community on twitter & tg !

👉TG: https://t.me/nftfySec
👉Twitter:
https://twitter.com/nftfyofficial

Tokenizing private sales in early blockchain projects

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