NFTs are popular these days. But usual NFT designs are a bit like musical chairs and highly speculative: because 100% of your payment goes to the previous NFT owner, your NFT lacks intrinsic value. If you can’t find the next buyer, then the NFT becomes a bag.
KittenNFT solves this problem by introducing adjustable speculative factor. The testnet version is at: https://www.kitten.finance/new/#net=ETH-ropsten .
In KittenNFT, only x% of your payment is sent to the last owner, and you are always able to “return” the NFT to the contract and get (1-x%) of what you paid.
Consider an example when x% = 10%.
- Alice buys the NFT for 1 ETH.
- Bob buys the NFT from Alice for 2 ETH.
- Alice gets his 1 ETH back, plus a profit of 2*0.1 = 0.2 ETH.
- Bob is always able to “return” the NFT to the contract, and gets a refund of 2*0.9 = 1.8 ETH.
3. Carol buys the NFT from Bob for 5 ETH.
- Bob gets 1.8 + 5*0.1 = 2.3 ETH.
- Carol is always able to “return” the NFT for 5*0.9 = 4.5 ETH.
4. Dave buys the NFT from Carol for 5.1 ETH.
- Carol gets 4.5 + 5.1*0.1 = 5.01 ETH.
- Dave is always able to “return” the NFT for 5.1*0.9 = 4.59 ETH.
Therefore when x is low, you get less profit, but less risk as well.
In the extreme case, when x = 0, KittenNFT becomes a fair auction to determine the initial price of the NFT, because you are always able to get a FULL 100% refund of your payment.
And when x% = 100%, KittenNFT reduces to usual NFT designs.
Thus we propose a new completely fair way to distribute NFTs:
- In the beginning, set x = 0 (or a low value). Moreover, always allow other traders to take the NFT if they pay a higher price.
- This eliminates gas wars, because there is no extra benefit being the first buyer (unlike usual distribution methods), and all that matters is who pays the highest price in the end.
2. Afterwards, increase x to allow more upside (and more downside as well). The x factor can be dynamically adjusted without any issues.
Currently we set x = 0 in our testnet contract, and you are welcome to test it: https://www.kitten.finance/new/#net=ETH-ropsten .
We are Kitten.Finance (https://www.kitten.finance/) and we focus on DeFi innovation, with our own designs of lending, swap, synthetic asset, and more. Read our Medium for more details: https://kitten-finance.medium.com/ .
And we will deliver more products this year, including a new kind of NFT market.