How NFTX Works
NFTX provides an advantage to four main user groups.
- Shoppers — allows you to buy, sell, and swap from our collections immediately. Sellers don’t need to find a buyer. Buyers don’t need to find a seller. And the prices for each NFT in the collection is the same.
- Stakers — allows you to stake your NFTs and earn yields through vault fees from people buying, selling, and swapping NFTs on the site.
- NFT Projects — allows projects to create a liquidity pool that helps find a solid floor price for the NFTs in your collection without users racing to list their NFT at the cheapest price on a marketplace.
- Arbitragers — DeFi users that find price differences between the vault tokens and the NFTs and can buy/sell to bring the price back to parity.
NFTX Core Team
The NFTX product is maintained by the Core Team who are part of the NFTX DAO and work on the product full time. Aside from the Founder, Alex Gausman, each of the Core team provided proactive contributions to the NFTX project before a proposal was created on the forum and snapshot to hire them.
They are ably assisted by a crew (unpaid) that helps with ongoing development, community management, and business development
NFT Solidity Contracts
All of the smart contracts that power NFTX are verified and can be found on https://docs.nftx.io/smart-contracts/contract-addresses
The marketplace, or front end of NFTX, is considered to be a key moat for NFTX and will remain a private repository for the foreseeable future. We are going to be working on an NFTX.js SDK that will allow users to easily deploy some of the basic functionality of NFTX if projects are keen to set up their own custom store fronts.
Most of the discussion about the project, news of new governance proposals, and alpha leaks on new features goes through discord.
You can join by visiting https://discord.gg/nftx
Any governance proposals that the community would like to put forward need to go through the Forums to start with – https://forum.nftx.org
This is also where we encourage the next stage of discord discussions to be moved to keep the conversation contained and easier to follow, and it gives a chance for non-discord users to see and contribute.
NFTX DAO proposals/decisions
As a DAO the NFTX token holders have a vote in any decisions that are made. There is a process which has been agreed upon that allows the governance process to work in a clear and consistent way.
- Initial discussion on discord
- Further structured discussion on the forums to define details
- Proposal on the Forum requiring a vote. A minimum of 5 votes with an 80% quorum.
- If passed, the proposal is taken to snapshot
- Minimum Quorum: More than 10% of circulating, non-treasury NFTX must participate for a proposal to Pass.
- Passing Threshold: More than 50% of voting tokens must vote FOR for the XIP to Pass. For changes to the NFTX contract, more than 70% of voting tokens must vote FOR for the XIP to pass.
Once this is passed then any changes to the contracts are staged on Aragon.
Aragon is a tool that is used to deploy updates to NFTX contracts. These changes are staged and have a 7 day waiting period before the updates are deployed providing an opportunity for anyone to vote against the updates (these changes have already been approved on snapshot so it’s no additional voting required).
How does NFTX make money?
All of the fees from staking on NFTX goes to the community (the stakers). Even on vaults like PUNK where NFTX provide a significant portion of the liquidity, this is not staked so all vault rewards are distributed to the community stakers.
NFTX does make income from the Sushi & Onsen rewards which goes into the treasury.
During the initial raise the NFTX DAO was able to secure a healthy treasury that will allow the Core team to continue to build the product over the next 18 months without any additional revenue requirements.
How much is the NFTX Treasury worth?
You can check the current value of the treasury wallet on Zapper.