Overview
- NFTX is a platform that allows creating ERC20 tokens backed by NFT collectibles. These ERC20 tokens are called “funds” or “vault tokens”123.
- The NFTX token itself is the governance token of the NFTX platform. It allows holders to vote on proposals and guide the development of NFTX3.
Key Functions
- The “funds” or “vault tokens” created by NFTX provide fractional ownership and improved liquidity for the underlying NFTs. This allows easier trading, lending, staking etc. of the NFTs23.
- Some of the main use cases served are – providing liquidity for illiquid NFTs, enabling fractional ownership of high-value NFTs, simplifying investing in categories of NFTs, using NFTs as collateral for lending23.
- Anyone can create a vault/fund for any NFT collection on Ethereum. Other users can then deposit those NFTs into the vaults to mint vault tokens2.
Tokenomics
- There is a total fixed supply of 650,000 NFTX tokens39.
- Of this, 390K were distributed to early community members, 65K were supplied as initial liquidity, 130K are held by the DAO treasury, and the rest were allocated to the founder with vesting39.
So in summary, the NFTX token represents governance rights over a platform focused on improving NFT liquidity and usability, while the vault tokens it powers enable fractionalized ownership of NFTs.