What are NFTs and how do Only1 use them?
Nonfungible tokens (NFTs) are the latest “big thing” in today's technological world. With hundreds of thousands of weekly sales, NFTs have amassed sales worth billions of dollars — the most popular being that of Beeple, the artist behind “Everydays: The First 5000 Days” — for a whopping $69 million dollars. Yes, you heard that right.
Image taken from theverge.com
This collage is a composition of all of Beeple’s work to date. But, before you think, “Who in their right mind would spend so much on such a thing,” it’s important to dive into NFTs and one of the reasons that makes them so popular.
The concept and value of NFTs revolve around the rarity and uniqueness of these tokens. The majority of NFTs now, especially the high-priced ones, are distinct, original and not interchangeable, bringing the term nonfungible to life. This means that while there may be other copies like art forgeries or replications, there is only one “true” owner/artist that exists and can be validated by anyone on the blockchain.
Digital art, like Beeple’s, is only one use case of NFTs. Over time, people have found new ways to incorporate digital ownership into different fields such as gaming items, sport collectibles, event tickets and, most recently, physical assets.
How does Only1 use NFTs?
Only1 believes that, if not already, the future of NFTs will serve a key function within the tech world and that utility NFTs will inevitably spill into other verticals outside gaming. They also think art and collectible NFTs will slowly be replaced by utility NFTs, and hence have made them an integral part of their concept and earning mechanisms. There are two main methods that Only1 uses to prioritize social engagement between fans and influencers.
Genesis NFTs and Creator Staking
- Mint: When a new creator is onboarded to Only1, a Genesis-NFT is minted and a staking pool is created
- Buy: Fans can bid for Genesis-NFTs via the Only1 marketplace with $LIKE tokens. Bid tokens are also burned to create scarcity and increase buying pressure
- Stake: Fans can stake $LIKE tokens on influencers that they support. The annual percentage yield (APY) of the staking pool changes depending how active and engaging an influencer is — higher the activity, higher the APY. Both the creator and owner of the Genesis-NFT split staking rewards!
Content NFT Farming
Post: The creator posts exclusive content as an NFT which can be an image, video or audio file
Purchase: Followers can bid for the exclusive NFT on the Only1 Marketplace, where the tokens will be burned once again
Unlock: Only the fan who successfully bought the NFT will be able to see its contents. If other followers wish to see its contents, they can pay an unlocking fee with $LIKE.
Earn: The fee will be split between the creator and the NFT owner.
Despite Only1, a social media NFT-powered platform, being one of the first of its kind in its field, it’s easy to see how NFTs and their benefits are being manufactured into something that could change the creative digital industry for a more positive future. With the elimination of mainstream media platforms and the introduction of NFTs as a medium of exchange, transactions and payments will be smoother and more suitable in preventing scams and fraud. Investors strongly believe in the potential of NFTs, and there is no reason you shouldn’t too. After all, you could be making money right alongside your favorite creators.