NFT Focused Index Proposal

Sigma
#6

Agreed, it is probably a good idea at this stage of the nascent NFT market to make the first index as simplified as possible. Not only would that protect investors but also easier on the development front.

Therefore, we could have this index focus specifically on NFT governance tokens. $RARI, $PGT, $NFTX and $AXS would fit that criteria. I will do some research for others - anyone have any suggestions?

We could have a separate discussion around ERC-20 NFT derivatives, as I think that is a fascinating use case. But the market needs to mature before we get there.

2 Likes
#7

I personally love what Aavegotchi is doing. Their DAO governance token is $GHST (GHST Token -- Aavegotchi Wiki). Aavegotchi is a “pet” rearing/breeding game. Each Aavegotchi is an ERC721 NFT and have different rarity scores based on various modifiers. One of the more interesting feature is that players can stake collateral on their Aavegotchi hence giving them intrinsic value. The collateral will be able to earn interests from the Aave platform.

It is worth a look if you are looking for more tokens to be added to the index.

3 Likes
#8

Agreed on this first point: an “NFTG” pool focused purely on the governance tokens would be the simplest way forward to start. I don’t think we’d need to be too concerned about the weighting mechanisms in that case - but the minute we started playing around with NFTs themselves, the thinking hat would need to go on.

Thanks for proposing this.

2 Likes
#9

Man this sounds like a good idea.

1 Like
#10

CoinGecko has an NFT category: https://www.coingecko.com/en/categories/non-fungible-tokens-nft

Many of these are the product tokens or the tokens used as currency within their specific ecosystem. Of the governance tokens I’ve identified, most are very illiquid, as one would expect at this stage of the market.

Therefore, I suggest we start with a small index that can be expanded as the market matures. For instance, OpenSea is likely to have a token and perhaps others, such as Zora, may as well. And those would be (depending on the token model of course) great candidates since they already have significant market share and exposure.

  • NFT Gov tokens with sufficient liquidity
    • AXS
    • NFTX
    • RARI
  • NFT Gov tokens with low market cap / low DEX liquidity
    • PGT (liquidity is on a uniswap fork split between ETH and native ecosystem token pairs)
    • GHST (most liquidity is on Binance)
    • MUSE
    • DOKI/AZUKI
    • MONA
How should the NFT Governance Index be initially allocated?
  • AXS/NFTX/RARI to start
  • AXS/NFTX/RARI + 1 or 2 less liquid low caps
  • Wait for more gov tokens before launching

0 voters

1 Like
#11

Support the concept and would be happy to collab

#12

I have been considering proposing something similar and love to see this being pushed forward.

My recommended basket, optimizing for a) liquidity and b) expected upside.

  • ENJ
  • MANA
  • AXS
  • SAND
  • NFTX

Smaller caps worth considering.

  • RARI
  • GHST
  • TVK
  • REVV
  • PGT

Would suggest starting with a basket of the larger caps and creating an expanded basket if successful (i.e. a DEGEN version of gaming / nft tokens). Including low caps with low liquidity in an index expected to garner significant TVL can be troublesome.

Another option would be to include something like all 10 of the above, but weight heavily to the larger caps.

1 Like
#13

I was compelled to propose this being an invested NDX holder but also because I wanted broad exposure to the NFT market (and expect others do as well). It’s a different type of exposure with those protocol/utility tokens that are used, in many instances, to purchase items within an ecosystem (eg. $SAND and $MANA).

Personally I would rather hold the tokens that aim to capture value from the usage of the ecosystem, as those likely hold more upside potential. So I would advocate for keeping them separated in different indices.

Which brings up an interesting potential long term vision… I know there has been some discussion of a “meta index” and we could get there with NFTs as well. A “NFT Meta Index” could be composed of multiple different NFT indices:

  • NFT Governance Token Index
    • $NFTX, $RARI, $AXS, $PGT
  • NFT Protocol Token Index
    • $ENJ, $SAND, $MANA
  • NFT Derivative Token Index
    • $PUNK, $MASK, other future tokenized NFTs

So we could just focus on the first one and then move on to the rest after that successful launch. However, if the majority disagree and think a large bundle of different types is a good idea, I will concede :slight_smile:

2 Likes
#14

I suppose it just feels like a rather arbitrary separation, given that AXS and SAND will have very similar mechanics.

PGT + RARI have low vol/liq so if included alongside AXS and NFTX would recommend it’s not at the same weight.

Possibly makes more sense to have an “NFT” index and a “Gaming” index.

1 Like
#15

Consider adding Dokidoki.finance to the NFT index as a small cap, to be honest there are very few large even medium cap NFT projects.

For more info - Doki Doki Finance – Medium
DOKI
AZUKI

2 Likes
#16

+1 for DokiDokiFinance. What they are building is extremely innovative and unique from other NFT projects. Their gamified NFT machines are essentially acting as a launchpad for new NFT artists to earn profits for their work.

1 Like
#17

I would focus on the NFT platforms more than individual games, despite marketcap. Or weight the index accordingly to include both. On platform side, $DOKI / $AZUKI should be included. $DOKI is Top 20 and $AZUKI Top 35 on Coingecko NFT index. Combined gotta be near Top 15. It’s on the way up with giant NFT content partnerships in the works. Plus, it actually facilitates the entire NFT space with its gachapon concept, not just retro Japan brand. If you don’t add it now, you’ll be adding it shortly, due to the deflationary attributes for both tokens. Check out the Dokinomics. Pretty cool.

#18

Why not have both types?

#19

DOKI DOKI should be supported in the NFT index. DOKI is the YFI of NFTs

1 Like
#20

Two other suggestions for the index:
$DEGO
$CHONK

#21

I like these suggestions. I wanted to add MEME as a suggestion as well. It’s fairly low cap (~$35M at this time) with decent liquidity. It’s used to earn rights to buy NFTs on https://dontbuymeme.com/ with staking.

#22

Think it’s probably best to use governance tokens to start and possibly tokens used in the ecosystems. When we start wrapping liquidity becomes a real problem as the valuation on NFTs are highly sub. Also note all the people asking for doki were all one after the other, new accounts, first post and focused only on the platform. Pls no brigade

1 Like
#23

concur both types make sense! I wrote in discord channel I would love to see FLOW / WAX / OMI and ENJIN in the mix

#24

The same as there are different indexes for DeFi projects (DEFI5, ORCL5, DEGEN), there should be different indexes for the NFT space that will satisfy the needs of different investors.

NFTX and NFT20? are already working on creating indexes backed by actual NFTs, so we don’t need to recreate the same product since they have more experience in the NFT space and NFTX team already has plans to eventually create a high-level index that will combine PUNKs, MASKs, etc. Instead, we can focus on creating a few indexes that consist of various governance tokens and protocol utility tokens, since such product is still missing from the market.

I’d also suggest to separate in-game tokens that mostly act as an in-game currency (SAND, MANA) from other NFT tokens.

NFTeco index can include ~10 tokens that help build the NFT ecosystem such as NFTX, MUSE, RARI, ENJ?, potentially Open Sea’s token.

GAMEco index will focus strictly on gaming tokens such as MANA, SAND, AXS.

Regards DOKI/AZUKI: Doki Doki’s degacha looks like an NFT casino, so I’d suggest not to include it in the index. I’m sure that their tokens can moon, but many investors won’t buy an index that contains gambling tokens/stonks. Don’t forget about the regulatory risks as well.

#25

I think you need to look up Casino and Degacha. You always get an NFT just random one ,in a Casino you can lose everything.