What is NFTX?
NFTX is the native token of a protocol that goes by the same name. The NFTX protocol is used for minting ERC-20 tokens that are backed by non-fungible tokens (NFTs). NFTX is community-owned, which means decisions on how the protocol progresses are taken by members of the community. The major goal of NFTX is bridging the gap between NFTs and DeFi. Check out the NFTX price chart above if you care to see the live NFTX price.
The NFTX protocol consists of two funds – single funds (D1) and combined funds (D2). D1 funds essentially are ERC-20 tokens that are backed by NFTs on a 1:1 ratio. D2 funds, on the other hand, are combined index funds backed by multiple D1 funds.
Besides issuing NFT-backed ERC-20 tokens, the NFTX crypto project increases its use cases by encompassing products like digital lottery tickets and various digital in-game items. In addition to that, NFTX provides on-chain liquidity and NFT-ERC-20 loans. In essence, NFTX could be referred to as a wrapped-NFT funds issuer.
Who Founded NFTX?
The NFTX crypto platform was founded in January 2021 by Alex Gausman. Apart from the fact that he's the founder and CEO of NFTX, there's no other information about Gausman.
Use Cases of NFTX Tokens
NFTX tokens provide users with various use cases.
To begin with, NFTX coins grant holders governance rights. This means that users can vote on various changes affecting the future development of the NFTX crypto project, as well as offer their own proposals.
Secondly, NFTX tokens are used for taking out NFT-ERC-20-based loans. NFT-ERC-20 assets are used as collateral on these loans. While taking out such loans, users still have full ownership of their collateralized assets.
Moreover, NFTX coins can be staked in order to generate staking rewards. The rewards are paid out by taking a portion of protocol fees. As a staker, you can choose to be a liquidity staker or an inventory staker.
Lastly, NFTX tokens are used to reward NFT creators on the NFTX protocol.
Interested in purchasing NFTX coins? Check out the NFTX price chart above. It features both – the current and the previous NFTX price.
NFTX Tokenomics
The total supply of NFTX is 650,000 tokens. However, there's no max supply set, meaning that the total supply might increase in the future, which could affect the NFTX price.
Considering token distribution, 65,000 of the tokens were located to the founder, 390,000 NFTX were distributed to early community adopters, 130,000 NFTX were set aside in the NFTXDAO treasury, and another 65,000 NFTX tokens were made available for liquidity by the NFTXDAO.
