What is NFTX?

NFTX is a floor indexing platform for NFT collectibles. Users can lock one series of collectible NFTs into the relating NFTX vault. Then they will receive the ERC-20 vTokens correspondingly at a ratio of 1:1. Those holding a series of vTokens can pay 1 vToken as a ransom and receive a random NFT from the relating vault. The NFTX model is designed to make NFT holders willing to lock up less rare NFTs into the NFTX vault for the chance to exchange for other more rare NFTs, leaving the pool with the least rare and least expensive NFT collectibles. Through its 1:1 vToken exchange ratio, the market can finally get a relatively fair floor price index for the collection.

The NFTX token is a governance token of the NFTX platform.

NFTX is a community-owned protocol and platform for creating non-fungible token (NFT)-backed ERC-20 tokens. What sets NFTX apart is its ability to power the creation and trading of funds that track sought-after NFT collectibles such as CryptoKitties and CypherPunks. These funds are composable and fungible, making them interchangeable with other tokens. They are actively traded on decentralized exchanges (DEXs) like Sushiswap and Uniswap.

NFTX was launched in early January 2021 to provide indexing services to the booming NFT sector. Its goal is to bring NFTs to high-level individuals trading funds based on leading non-fungible tokens like PUNK and AXIE on Uniswap and other DEXs.

NFTX is a community-controlled platform that allows users to place index funds on the Ethereum blockchain. The project's governance relies on a decentralized autonomous organization (DAO). To prevent monopoly during decision-making, a proposal targeting new changes needs to garner support from 80% of all voting tokens. The voting period lasts for 24 hours.

NFTX bridges the gap between decentralized finance (DeFi) and NFTs. The platform supports two types of funds: D1 and D2 funds. D1 funds have a 1:1 ratio backing involving an NFT and an ERC20 contract. For example, if Alice owns 1 ZOMBIE-FEMALE, she can redeem precisely 1 Zombie Female at random. D2 funds, also called top-level funds, are Balancer pools that combine multiple D1 funds. For example, the D2 fund AVASTR combines 3 D1 Avastar funds to provide diversified exposure to AVASTR without the need to hold and manage multiple tokens.

NFTX seeks to replicate indexes like DefiPulse or BYDFi, but with an NFT twist. It expands its use case to include the representation of items like digital lottery tickets, in-game items, and digital collectibles in the form of NFTs. However, NFTX charges a fee of 2.5% on burn and mint operations. The platform also plans to offer NFT-ERC-20 loans and on-chain liquidity to further drive growth.

NFTX has a total supply of 650,000 tokens. The token distribution includes 10% allocated to the founder, 30% for NFT contributions, 30% for Ethereum (ETH) contributions, 10% for NFTX liquidity, and 20% for farming. The tokens allocated to the founder have a five-year vesting period. Token holders have the right to contribute to the decision-making process.

The NFTX platform is built on the Ethereum blockchain, which is known for its security. Ethereum utilizes both proof-of-stake (PoS) and proof-of-work (PoW) consensus mechanisms. NFTX leverages Ethereum's ERC-20 token standards, which provide diverse and battle-tested security measures.

The NFTX token is available on centralized exchanges and DEXs such as Uniswap, 1inch, and Hotbit. On Uniswap, it's paired with wrapped Ethereum (WETH), while on 1inch, traders can choose between Ethereum (ETH), Tether (USDT), and yearn.finance token (YFI). Hotbit offers the NFTX/USDT trading pair. For more details on purchasing cryptocurrencies, click here.