What is NFTX Marketplace?

Updated on 24 August, 2022 5:40 PM
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    All ears, crypto enthusiasts! We have brought information about yet another development in the NFT space. This blog will give you detailed information about NFTX, a platform that helps create NFT-backed ERC-20 tokens. These tokens are termed “funds” and are fungible and composable. The platform also provides liquid markets for trading liquid non-fungible tokens.

    NFTX is a community-owned protocol developed on top of Ethereum. In NFTX, users deposit their NFT collections in vaults. After depositing NFTs, fungible ERC-20 tokens or vTokens are minted. 

    History of NFTX

    The NFTX platform was launched in 2021 to provide high-quality services to the NFT marketplace. An example of such a service would be the indexing of projects. These tokens can be traded on decentralized exchange platforms such as Sushiswap, Uniswap, etc. Alex Gausman founded the platform. The team has expanded to quite a few creators who belong to the NFTX DAO (Decentralised Autonomous Organization) and have different roles in the team. The Core Team consists of JackieBoi, Kiwi, Javery, JB, Quag, Caps, and Chop. They are assisted by a crew team that consists of Quantumly, Aeto, and Toes.

    Types of User Groups on NFTX

    There are four main types of user groups that NFTX caters to:

    • Shoppers - They are essentially traders who come to buy and sell NFTs on the NFTX platform.
    • Stakers - People in this category stake their NFTs on the platform and earn yields through vault fees on trade. These fees are charged to the shoppers and people swapping their NFTs to the site.
    • Project Creators - The site provides a liquidity pool for various projects and helps the creators earn maximum profits on their creations.
    • Arbitragers - Such people can be considered moderators. They identify price differences between NFTs and vault tokens and trade them to bring the prices back to normal. 

    So if any of the above domains look interesting to you, you could check out the NFTX platform right away, but if you are looking for something more, hang on to our blog as we have covered every feature offered on the platform in this blog.

    NFTX DAO Decisions

    NFTX users can participate in important governance proposals or decisions by voting through a simple process. The steps for the same are given below:

    • If any change is required, the discussion begins on the Discord channel of NFTX.
    • The discussion is then shifted to NFTX forums to inform forum users of the developments.
    • Voting is now initiated with a minimum requirement of 80% quorum and five votes.
    • More than 10% of the circulating, non-treasury NFTX must vote for a proposal to pass.

    In case of changes suggested in the NFTX contract, more than 70% of voting tokens must be for the motion, and in all other cases, this minimum requirement is 50% of voting tokens. After this stage, further amendments are done through Aragon.

    Aragon helps to deploy updates on NFTX contracts. A 24-hour waiting period is provided to have the final consent of all the community members on the proposal.

    Different kinds of funds available on the NFTX platform

    Currently, two major types of funds are available on the NFTX platform:

    • D1 funds include 1:1 backing between an ERC-20 contract and a single NFT contract.
    • D2 funds consist of balancer pools through which D1 funds are combined.

    Unique Features of the NFTX platform

    • Visions to replicate indexes such as DefiPulse and CoinMarketCap
    • In the future, NFTX aims to provide in-game items, lottery tickets, and digital collectibles as NFTs to its users.
    • 2.5% fees are charged on burn and mint operations.
    • The platform also supports hardware wallets to store your cryptocurrencies.

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