What is an NFT? Simple. It is the opposite of a cryptographic currency or token. Suppose one bitcoin is interchangeable with any of the other 20,999,999 bitcoins. In that case, one NFT is unique, and no other digital asset exists that somebody can exchange for it for the same benefit.
In an analogy with the physical world, there are a lot of dollar bills. There is only one Mona Lisa.
An NFT, therefore, is simply a digital certificate that is unassailably yours. I am willing to bet that the provenance for a piece of art will be in the form of NFTs one day. That would certainly be an improvement over a printed certificate that can be forged. In the same vein, deeds to a property would make much more sense if in NFT form. The lawyers would hate it, but no one could come along and say, “That’s my house!”
But that’s not the good stuff.
An NFT is extraordinary because it can be programmed. It is intrinsically smart. It does not merely exist; it acts. Further, an NFT itself is composable. In other words, NFTs can own other NFTs and also fungible assets such as tokens and coins.
In this article, I will not include the history of NFTs. For that, I highly recommend you read The Non-Fungible Token Bible at OpenSea.
Instead, I want to talk about Lepricon’s launch strategy for NFTs and how they integrate into our user reputation system, Shamrock.
The Genesis of an NFT
We have several NFT projects in the planning stages at Lepricon. The first is called Genesis.
To explain Genesis, I need to recap the core functionality of the Lepricon Platform. L3P token holders, and thus members of the L3P community, will be able to do the following with their tokens:
- Play games
- Swap with other tokens
- Earn tokens through staking to the liquidity pools (which enables swapping)
- Predict world event, sports, and eSports outcomes through peer-to-peer liquidity pools
- Fund game development for the platform
- Collect NFTs.
All of these activities offer the chance to earn more L3P and receive rewards. The L3P ecosystem will encourage and reward behaviors that support the growth and liquidity of the platform.
The way we will measure this is called the Shamrock Protocol. Shamrock combines NFTs and reputation in an algorithm that measures positive participation in the Lepricon platform. The premier tier of the Shamrock Protocol is called Genesis.
Genesis will be represented by an NFT and is obtainable by the earliest adopters of L3P, who stake their tokens to support the liquidity pools that underwrite the swap feature. Lepricon will mint less than 100 Genesis NFTs in a single event.
The Genesis NFT will not expire and will offer several benefits, including significantly reduced fees on all transactions and higher rates of return on staked tokens.
As Genesis is an NFT that adheres to the standardized protocols, it is tradeable. A real-world comparison would be the secondary market for club membership debentures. You will be able to buy Genesis if someone is willing to sell on the secondary market.
After Genesis, we will launch a secondary tier called Elite. There will be a third and final tier, which we will release news on later. NFTs will be the primary credentials for all tier membership.
There will be further announcements on our NFT strategy in the coming weeks, including game-specific NFTs and collectibles. Stay tuned!