I researched NFT projects and found that successful ones all have one or more of the following:
- A vibrant community with events, stories, and constant development (see BAYC).
- They were first (see CryptoPunks).
- An excellent marketing campaign to convince shoppers “to buy the next big thing while you can still afford it.”
- They “unlock” something: NFTs can be objects in video games, or they might also get you into special digital or IRL events (see point 1)
- 1, 2, and 3 have this in common: every JPEG is unique.
So what makes an NFT project successful?
People want to buy them.
Ok, so what makes people want to buy them?
Scarcity and access. People do not buy NFTs just because they are pretty (but they probably won’t buy them if they are not pretty!).
So what can Trustless offer, in terms of scarcity and access, that is non-fungible?
That’s the big question. One idea is to start with a “members only” protocol, and this could achieve a few things:
- It could create value around the protocol without compromising on centralization. (Scarcity of access would mean that the governance token would no longer be the only valuable part of the protocol.).
- It could keep the protocol small while the kinks get worked out.
- It could create an instant use case for Hue: Want the NFT? Find some Hue to buy it!
- The NFT could literally be the TCP position NFT.
Create a Trustless NFT sale/marketplace protocol that only takes Hue.
Partner with another NFT protocol on zkSync, on the condition that they only accept Hue for Trustless NFTs.
Mint these elsewhere (not on zkSync): easy but would not create a use case for HUE.
It’s also ok if we want to simply release some cool JPEGs to the community. It is fun, and it is fine, but I would not expect there to be a lot of immediate demand. If the supply of NFTs was limited and TCP becomes very successful in the future, that could become a successful marketing campaign to drive far future demand for these “OG JPEGs.”
This makes a lot of sense to me, thanks for posting this!
The one thing I would say is that you have to walk before you can fly: as in, it would be awesome to have a big waterfall launch where we have a master plan and everything works, but I think to start we would just need to create some NFTs that don’t do anything, and build off of that experience.
Who needs useless NFTs? Let’s immediately take roles, for motivation!
It would not be bad if the Trustless had its own NFT. I would like to get the nft from the trustless.
Thật tuyệt vời, i love it
yes,its a good idea. every good projects should have their nft
for the implementation idea, i think i’ll go with number 2.
The first idea would take too much effort to make the marketplace successful, teams better focus on the main protocol.
The third idea as you mentioned no adding use case for Hue.
I agree, #2 feels like the best option to me, but the design space is wide open!
I do agree and it would help us to gain more traction as many new people like NFTS!
This is a great idea. I support
I like this idea, but I think think the first one would take too much time. Option 2 seems best, but do you think you might be able to convince whatever nft project you partner with to accept Hue for all nfts? If you really wanted to be ambitious then you could try to get Hue as the only accepted stablecoin on an nft marketplace. Just an idea, I have no idea if any nft project would accept those terms.
Hi, it’s the absolute keys:
- A vibrant community with events, stories, and development
2.They were new ideas, say,Stepn
- An excellent marketing campaign to convince shoppers
Not people want to buy because Nfts are beautiful but they can earn money. People really like what they buy?I do not think so.
I looked into the current NFT ecosystem building on zkSync, and there are two main options:
TofuNFT is vast and on every chain – they intend to launch on zkSync
Mint Square is small, and they are only on Starknet (another zk L2), and plan to launch on zkSync
I mentioned in last week’s call that I had done a bit of research about use cases for other DeFi project NFTs. I’ve been somewhat busy lately, but here is an initial overview of a couple that hopefully exhibit different projects and different ways that NFTs are being used.
Zerion genesis NFT
Project summary: Zerion is a portfolio management tool, similar to Zapper.
NFT launch history: After having an operational product for some time, they decided to launch a series of genesis NFTs that were free for anyone to mint during 5 days, based on a minimum amount of usage of their product. NFTs were randomly assigned a rarity between 3 levels: Legendary — 0.1%, Rare — 15.3, Common — 84.6%
NFT artwork: The artwork is a Zerion logo viewed through multiple lenses, with a set of unique images for the NFT cards.
Use case: Wallets that hold the genesis NFTs are exempt from fees on swaps (0.5%) for a period of time (common) or forever (legendary and rare).
More info: What Are Zerion Genesis NFTs? Tokens That Waive Fees
Project summary: Vesta is a Liquity fork on Arbitrum with some differences (for example, it is governable in a few ways whereas Liquity is not).
NFT launch history: Vesta wasn’t selected for the Arbitrum Odyssey, but they wanted to reward their users anyways so they made their own V-Key NFT mission. Users had to open a vault with collateral, mint the VST stablecoin, provide the same amount of VST into the VST-FRAX curve liquidity pool, then stake their LP positions for at least 7 days. There were three tiers of NFTs users could qualify for based on the amount of VST used.
NFT artwork: Each tier corresponds to a special color of “V-key” NFT, which is represented as a digital key. https://tofunft.com/collection/vesta-v-keys/items
Use case: The utility hasn’t been announced yet (the campaign ended on July 30th). It is likely to be integrated with staking in some way.
More info: Announcing the Vesta V-Key NFT. Learn more about how to mint the Vesta… | by Vesta Finance | Medium
Project summary: Li.Fi is a cross-chain bridge aggregator. Their bridge site has been renamed to transferto.xyz
NFT launch history: Difficult to find info about the distribution but it seems that their “Li.Zard” NFTs are being distributed periodically to beta testers, server boosters, and other users who complete “entry to DAO” challenges such as Twitter threads or asking good questions during AMAs. Example found here.
In Li.Fi, obtaining a beta tester role requires being active and contributing to the community, then selected by a team member. Being a beta tester means testing new features before they are released to the public.
NFT artwork: Not much info about it, but here is an Opensea listing.
Use case: Unlocks access to a “gated community” on Discord, and many hints of some importance for a future token airdrop.
Project summary: An options protocol mostly on Solana.
NFT launch history: After the public launch, a collection of 2222 Lightning OG NFTs were airdropped to users who had been with Friction “since the beginning” and had been providing feedback on the devnet. 2016 were sent to the community, while 206 were kept by the treasury for marketing proposals and grant campaigns. Lightning OG sales have been collecting 4% royalties for trades on the Magic Eden NFT marketplace, giving users the choice for what to do with the earnings. Ultimately, users decided to create a Friction validator to secure the Solana network and earn fees that would be distributed amongst NFT holders.
There was some good discussion about other use cases for the NFT in this forum thread.
NFT artwork: A Zeus-like figure holding two bolts of lightning, harkening to Friktion’s “volts”. Only one style of NFT artwork was used.
Use case: Unlocks a special set of Discord channels and market research for “alpha”, early access to new features, a booster for potential token/NFT airdrops, and supposedly a small amount of yield for NFT holders (not sure if the validator plan has officially begun yet or not).
More info: NFT: Lightning OG - Friktion
I wrote a vaguely similar post about community NFTs for Gro Protocol last year which is now somewhat outdated, but it includes more ideas that I haven’t mentioned here.
For Trustless NFTs, a few questions to think about:
- Should they be airdropped, have a free mint, or require a minting fee?
- Should there be tiers based on activity, and/or random rarity levels?
- If they are distributed prior to the launch, how much should be announced about the future utility of them?
- Should Trustless NFT trades have royalty fees that go to a treasury that users can decide what to do with?
- What should other use cases be?
- How many should be distributed, how many kept for future incentives, and what kind of events should we incentivize them with?
Does anyone else have thoughts about NFTs and their relevance for Trustless? Please feel free to share. There are many more out there.
Agreed that TofuNFT, if they do launch on zkSync, is poised to take a big part of the market share. Here are a few more marketplaces that I found which are planning to launch on zkSync, and my apologies if you already noticed these in your research:
Excellent I’ll add these to the list. Ideally we would find something big or organized enough to be successful, but small enough to have early interest in hue. Bonus points if the protocol shares our passion for trustlessness.
And bravo putting together all that info for NFT uses by other protocols. I wonder if holding certain NFTs to unlock a “pro” (cheaper) version of the Trustless Currency Protocol would be desired. There are just so many great possibilities.
I think we should use the GalaxyProject to give the community the gem identity OAT first.
We can get the opportunity of wl through the gem identity OAT, or buy it through HUE in the public stage.
NFT for OGs would mean a great deal to all that have been here since the beginning. Holders of these would then be eligible to some perks like, consideration for Alpha or low tx fees.