NFT’s and the Metaverse. The Holy Trinity that combines them all: The NiftyX Protocol.

The Holy Trinity of NiftyX Protocol.

Welcome to the next part of my 2022 outlook. In this article I will explain my thesis of the innovation and technological advancements that are happening in the avalanche subnet ecosystem. In addition, I will talk about the NFT/Metaverse wave that is coming to this particular scene!

  • Avalanche ($AVAX) subnet functionality(Q1)

One of the ecosystems that will flourish due to this fracturing of sentiment is Avalanche ($AVAX). They recently released their subnet EVM. The problem however was that there is no native bridge to migrate from the C-chain to the subnet. In addition, validators have to be manually added. See below.

Vice President of Engineering of AvaLabs: Patrick

However, full functionality of the subnets should come out soon(tm). To be a validator on a subnet you have to stake 2000 $AVAX. For safety you would like to have a couple of validators, so you can see where the demand could come from. This opens a world of possibilities for ecosystems such as gaming that combine NFT’s. This would mean that for the first time gaming, with possible millions of microtransactions happening, could finally scale without clogging up the main layer. For the next narrative which are NFT’s/metaverse I will mainly talk about the subnet which I am most excited for on Avalanche and its governing ecosystem which incorporates all facets of NFT’s that are bootstrapping for adoption in the next couple of years. If you want to read more on subnets and what they bring to the table you can check that here. Buying Avalanche ($AVAX) here, is buying ethereum at 60$ in 2017 in my opinion! Their tech is superior and their scaling solution is probably one of the first to reach adoption with subnets.

  • NFT’s + Metaverse
  • Gaming

NFT’s, even outside of the JPEG territory, have seen adoption. In the subject of DeFi 3.0, ve(3,3) NFT’s make such derivates possible. The next ecosystem that will see the next wave of NFT adoption is gaming, which we already have seen booming in 2021. The market of gaming grew to over $60 billion. This was the first iteration of NFT gaming which lacked immersion and proper GameFi economics combined with NFT’s. One project that will gain traction with this narrative and will gain its very own subnet on $AVAX is NiftyX($SHROOM) with its vertical Gameswap ($GSWAP) and other future verticals which are Beatswap and Fashionswap. This covers all the upcoming ecosystems which will gain adoption made possible by NFT’s.

It also feels like every week we have some big fortune 500 company or huge player in a sector that is pivoting to the NFT/Metaverse side. Facebook rebranding to META, NIKE filing for patents for the metaverse, gaming companies pivoting to the metaverse; EA and Microsoft, all metaverse. If this does not make you bullish for a sector I actually don’t know what to tell you.

The problem today in what hinders the adoption is all the angry pronounce furries that spew on NFT’s, saying it is killing the planet. If we want to go over what kind of sectors are “wasting” our energy, subjectively I would say Furry costumes are a waste! or Jewelry, maybe even the gold sector, I don’t care for that stuff. Its a very loud voice coming from the pronounce furries which in my opinion is ungrounded. This technology actually grants benefits to entire communities and a lot of people. If that is not worth some energy I don’t know what is. My approach is to just ignore them. There will always be people that have a loud voice that are against a certain technology or idea. Meanwhile, I will just try to see which games implement the technology in the right way and try them out. In the end gamers just wanna game and have fun. The NFT aspect and hate for P2E (play-to-earn) is sort of grounded in my opinion. If the #1 incentive for gamers is to P2E they are doing it wrong. The game in its entirety and sole focus should be to have fun. The rest of integrations of NFT’s will come automatically if it gets adoption and could actually help with the fun aspect by combining them with real life aspects!

As I have been a gamer for over 15 years, I fully understand how important this incorporation of NFT’s can be for gamers. We are entirely in the hands of large corporations decision, which most of the time are based around maximizing revenue. The best example is World of Warcaft. Playerbase has been steadily dropping after Wrath of the Lich King expansion (2009). However, revenues have been ever increasing. Even after a mass exodus in 2021, their revenues have been going up! What kind of bs is that. 0 catering for their playerbase, while trying to stuff down microtransactions or stupid mounts through our throats. It would be so wonderful to have some kind of right or voting power to influence certain decisions that affect the playerbase. We haven’t even touched the most important aspects of NFT’s in gaming. Namely, the right to own in-game assets yourself. Imagine getting the legendary sword after playing for a full year. It is an attestation of your effort, time and energy that you put into the game having fun. The thing is, everything has an end and that’s good, since that brings value to the concept. But if I wanted to sell this legendary sword (or my character) in general, due to me not having enough time to play anymore. I would currently have to use an illegal 3rd party site to sell my assets or character that I spent a lot of time for and dont have any rights to anything I obtained in the game. Would be preeeety dope to have that stuff personally and easily transact the value that it is worth on an open market in a decentralized manner.

What if we owned them? What if we could have extra benefits by implementing this ownership of assets and how would this benefit gamers?

  1. Lending out certain rare items to other players creating revenue on your in game assets.
  2. Having stats on the NFT that change looks (upgrade).
  3. Showing off hard feats (rare NFT’s) that you accomplished by playing the game, and show them in other games of the metaverse.
  • Music

NFTs could also be very beneficial for artists that produce music or want to connect and give more back to fans. We have seen it bootstrapped in the first NFT wave. One example is Audius ($AUDIO) which is one of the “successful” (chart is massacre, just like everything else at the moment) firsts. I think a lot of artists are very cryptocurious and would like to have a bit more rights and power regarding how to distribute their music. Aswell as engaging and giving loyal fans extra advantages and benefits. Some benefits that could empower the artist and his/her community and fanbase:

  1. Royalties to early investors/fans of music released as an NFT.
  2. Free access to festivals or shows where the artist performs.
  3. Extra art-cover or album covers to long term NFT holders.

Possibilities are kind of endless regarding NFT’s. As you can imagine there 100% is a need for this, as artists in most cases have to join spotify or other platforms that have a monopoly and gain a fraction of the revenue of the platform they actually deserve. The thing is saying: ‘’They don’t have to go to spotify!’’ is true, but everyone knows if you want to compete with competition you have to succumb and join the platform. It’s just shitty for starting artists. I think NFT’s and communities can booster together in fighting this centralized market and gain more power back regarding rights and revenue on their music, while empowering their communities.

  • Fashion

Another market that has seen adoption in the NFT-ecosystem is fashion. All the luxury brands are pivoting slowly to see how their fit in the market reacts and who they attract. Examples are digital merch (Nike), physical merch (Fendi), physical merch accompanied with an NFT (unisocks best example tbh) or NFT’s that give certain advantages in a luxury goods communities (permanent 10% discount on all purchases). Again possibilities are endless. The thing I like about this is that luxury goods are unnecessary in general anyway. It literally is splurging money on stuff for maybe quality, but 90% of the time to flex to outside normies. In my head, crypto + splurging entities are a perfect match and can be easily played in on. I do think that the real fashion ecosystems will flourish not in 2022, but in 2023 and 2024.

Below I will give a protocol that I think has thought of it all: NiftyX Protocol ($SHROOM) integrating all the important sectors that are happening in the NFT space namely: Gaming, Music and Fashion.

Due to NFT’s being user- and community focussed, and this ecosystem that incorporates different sectors is in my opinion set for a decoupling of the average cryptomarket trends. Joey (Core-contributor NiftyX) also predicts that especially gaming projects will see a decoupling in 2022. I indirectly see it as a hedge for a bear market. Gamers wanna game, bearmarkets are boring so gamers will increase.

  • $SHROOM

NiftyX Protocol ($SHROOM) will migrate to the C-chain on Avalanche this quarter. for a short overview of what’s in the pipeline you can see the roadmap below:

Roadmap of NiftyX for 2022

How the protocol and the incentives work on a tokenomic level can be seen in the diagram below:

The NiftyX Protocol

One of the best things about the project is that it almost has all tokens unlocked and in circulation. There currently is only a very small dillution factor. Although, with the migration to C-chain some adjustments will be done to adopt the ve(3,3) model in the protocol too. This will enhance tokenomics and is needed to bootstrap the ecosystem of NiftyX Protocol. This however does not mean that our initial % of stake in the network will be less. Atleast not right after the migration. After that it depends how the ve(3,3) is implemented and what people lock for a certain amount of time. The ve(3,3) incorporates a decaying emission but more is already explained in the DeFi 3.0 article I wrote earlier this week.

So the Gameswap DEX ($GSWAP) is first on the list as vertical and DEX to come out in the NiftyX ecosystem. Currently an independent studio is working hard to design a AAA game, planned to be released this year. If you lurk in the chat now and then you can figure out yourself who is building it and what kind of persons are on his team. The lead of the project, Joey, also is present on twitter. Their leaks so far has been nothing but stellar so there are a couple of hints that this could be a big gem. There are a couple things that I think scared off some investors.

  1. Low liquidity
  2. Joey, core contributor, and rest of the team, have the tendency to update the strategy depending on market conditions (causing some delays here and there)
  3. Stealth development

The low liquidity point actually causes a big positive assymetric risk. No VC’s can enter with large amounts of money without pumping price up a couple multiples.

Joey has been very good at predicting trends. They were one of the first protocols to work close with AvaLabs to prepare for a subnet. This was somewhere in the end of 2020 before the $AVAX hype began. In addition, this probably is his life’s work. Therefore he wants it to be not average but really really good. And I commend him for that. I was super pleased to hear that they were looking at incorporating the ve(3,3) model in the protocol for future value. The disadvantage of this habit was that here and there communication was not optimal, aswell as delays. One thing is certain Joey likes to build and does not cater around short term moonboys. Currently he is predicting that part of the fun games that will be launched this year will entirely decouple from the average cryptotrend. So far Joey hasn’t missed any of his predictions. Sometimes you just need to bet on the vision of people in the space (after doing proper due dilligence and knowing the risks).

Stealth developments indicate already that they were in stealth. No releases, no updates, just building. This ofcourse hinders adoption as progress is yet to be seen for. But as I said all the crumbs indicate that they have built a powerhouse ready to be released from out of stealth.

Currently the community is highly anticipating the release of the socials of the studio that is independently building the AAA game on Gameswap. After that we can expect a migration of the $SHROOM token to the C-chain on Avalanche. Plus, full subnet functionality is also projected to be finished somewhere Q1. So we might actually see some functionality of the Gameswap DEX soon.

Let’s take a look at the chart of $SHROOM and $GSWAP below.

Weekly $SHROOM chart in $.

Current price = 0,24$ (Mcap: 12.4M$). As can be seen in the weekly dollar chart of $SHROOM we had two anticipation rallies. One was for the big news, which was a rebrand in the start of April, where shroom rebranded to NiftyX Protocol. The other rally was when they slowly went out of stealth to launch communications back up. From a R/R perspective this certainly is not a bad buy in my opinion. Another factor that is positive is that the whales in this project have conviction. Ofcourse they will lock-in some profits on the way, but most of these guys are good guys and I have talked with a lot of them over the course of the last year. They have passed the stresstest that is perfect Joey :P. So having a solid group of people that have the best interest of the project in sight is very important when doing due dilligence. Most of the time VC’s will not!

Weekly $GSWAP chart in $.

Current price of $GSWAP = 1,53$ (Mcap: 13.4M$)and follows a similar pattern as $SHROOM. This is also due to them being somewhat correlated. However, Gameswap saw more traction in 2021 due to its gaming metaverse narrative. From 1 November onwards wallets increased from almost 2500 to 4500 in 1.5 months. Due to speculators currently there are approximately 4100 wallets. So 400 sold while we gained like 1600 wallets. Nevertheless, TA-wise again a solid buy in my opinion. It’s important to not buy in those big huge green candles. You need to buy when no one else is buying and conviction is low (that is for solid fundamental project, ofcourse).

As the Gameswap DEX ($GSWAP) was built with modularity in mind, the source-code can be copy pasted to deploy other verticals. As you can see in the roadmap somewhere in the summer (I assume) we will see the releases of the Beatswap DEX and the Fashion DEX later on. All governed by the NiftyX Protocol’s token: $SHROOM. How the Gameswap DEX ($GSWAP) works and functions will be a test for both the other upcoming DEX’s. So a lot of stuff in the pipeline!

So why should you hold the $SHROOM and $GSWAP token?

$SHROOM functions as the governance token and gives voting rights for decisions in the overall ecosystem (DAO), which consists of the different swap DEX’s. In addition, 30% of the total net fees from those DEX’s (Gameswap, Beatswap and Fashionswap) will go to the $SHROOM holders. For $GSWAP the same applies, but then for its own ecosystem. $GSWAP gives you right to decide which project/games can launch on the Gameswap launchpad while giving early access. The amount of $SHROOM and $GSWAP needed to participate in those launchpads is yet to be decided. In addition, 60% of the total net fees generated on the Gameswap DEX will go to the $GSWAP holders. As said before, Joey is trying to implement ve(3,3) in the tokenomics. This means that there will be a lot of extra incentives on top for stakers, holders and lockers. If you would like to see how much fees you can earn. I made a small model of the volume of opensea and axies to compare how much you would earn in this medium post. At the bottom you can download the sheet to play around! Note that the data only goes up to november.

As a secret alpha for the loyal readers reading this, the studio that is developing the AAA game that will exclusively be listed on the Gameswap has dropped this in the last medium post of NiftyX. There was a picture of a weapon NFT (designed by the studio) with the following text on it, see picture below. They even said there were easter eggs present for the watchful eye. So who is Zhu? Zhu could stand for Zhu Su who is part of Three Arrows Capital (3AC). Maybe it has a connection, but maybe not. Atleast it is a big hopium dosis!

ZHU|SYSTEMS.

If you would like to read a bit more about it I can also refer you to R3volt’s medium article about $SHROOM and $GSWAP.

DISCLAIMER: I am invested in $SHROOM and $GSWAP and have been a community-member for a long time. I have no association with the team. I’m just a guy that likes to research and write about it. Not Financial Advise.

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Crypto since 2016. Fundamental Analysis for long term investments. Always curious to predict future trends with available data.

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Herres070

Herres070

Crypto since 2016. Fundamental Analysis for long term investments. Always curious to predict future trends with available data.

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