Essential information on NFT Cash (NFTC) – A New Algorithmic Stablecoin for NFTs, Gaming, and the Metaverse
Top gaming and NFT projects like The Sandbox, Axie Infinity, Revv by F1 Delta time, Gamee, Decentraland, etc., will encourage mass adoption of crypto with the integration of an algorithmic stable coin specifically for the NFT and Blockchain Gaming ecosystem.
What makes NFT Cash so hot?
NFT Cash is the new algorithmic stablecoin for NFTs and entire Blockchain Gaming Ecosystem. It will usher in a new era of coordinated integrations and utility across multiple game titles and game studios.
The deposit period will be announced soon..
The NFT Cash protocol will remove all the problems of price volatility both in-game and cross-game where digital goods are bought and sold. Let’s take a look at the F1 Delta Time Legendary Crate for sale below. It’s currently set at 288,284.8581 REVV. That’s about $17,056.37 in USD terms. But the volatility of the REVV price is quite high. It has been trading in the $0.03 — $0.06 range the past two weeks. With NFT Cash, smart NFT collectors will pay closer $8,648.52 instead of the pumped up price of $17,056.37 today due to the the REVV token mooning.
That is the power of NFT Cash! It enables true gamers to participate in the gaming economy. It puts a native currency into the hands of the citizens of the Metaverse.
As the growth of cryptocurrency adoption continues, so must the growth of a strong set of stablecoin options for NFTs, gaming, and the Metaverse. NFT Cash will launch soon in this new year! Only those who have contributed to other NFT/Gaming/Metaverse projects will be rewarded.
How the NFT Cash mechanism works
While several different designs of algorithmic stablecoins have launched, we believe that the Basis Cash design is the best out there. It’s proven to be resilient while also having the widest distribution of users. NFT Cash is a fork of the Basis Cash protocol and also draws inspiration from the community distribution spirit of Mith Cash. We love the work both teams of pushed out.
The NFT Cash protocol controls money supply similarly to how central banks of the world may guide the value of fiat money through monetary policy. By controlling the quantity of money supply in an economy by buying or selling bonds, a target value can be achieved (In this case $1). Instead of a central bank or a currency board, rules are set and executed programmatically via smart contracts so that behavior of the system can be predictable.
The NFT Cash protocol consists of three tokens: NFT Cash (NFTC), NFT Share (NFTS), and NFT Bond (NFTB). NFT Share and NFT Bond are designed to move NFT Cash towards the price of $1. The following scenarios describe how NFT Share and NFT Bond work, with the first scenario assuming that the price of NFT Cash is below $1 and above $1 in the second.
NFT Share token holders will be the backbone of the system, providing resources and guidance to the protocol. In return, NFT Share token holders will receive any new money supply that enters the system. NFT Share and NFT Bond tokens are designed to move in price and guide NFTC towards $1. The goal is to keep NFTC priced between $0.99-$1.01 in the long-run so that it can be a viable stablecoin.
Algorithmic Contraction Period
When NFT Cash is below $1
When NFT Cash is traded below $1, users will be able to purchase NFT Bonds at a certain discount to establish the price stability of NFT Cash, with the expectation of future profits upon redemption.
Each bond promises the holder exactly 1 NFT Cash at some point in the future under certain conditions. Whenever a user purchases NFT Cash, it is burned, causing a decrease in the circulating cash supply. Bonds do not have interest payouts, nor do they have maturity or expiration dates. Rather, they can be redeemed on a 1:1 ratio with NFT Cash when the price rises above $1.
Purchased bonds can be redeemed on a 1:1 ratio with cash only when the oracle price of cash is above $1. This prevents bondholders from cutting their losses on redemptions and creating unnecessary increases in supply.
Algorithmic Expansion Period
When NFT Cash exceeds $1
When the price of NFT Cash exceeds $1, the contract primarily allows bond redemptions to bond redeemers. Even after the bonds are redeemed, if the price of NFT Cash is traded above the price of $1, an increase in the demand of NFT Cash results in new NFT Cash tokens being minted and distributed to NFT Share holders.
For instance, let’s assume that the price of NFT Cash exceeds $1 even after bond redemption. In this case, the Treasury contract mints new NFT Cash seigniorage into existence. This seigniorage is given to the Boardroom, where users can stake NFT Shares and earn daily seigniorage based on the price of NFT Cash.
Genesis Tokens Distribution Overview
Zero supply minted / purely via community distribution. The initial NFT Cash token distribution will only be eligible to users who deposit the yNFT token
The initial distribution of NFT Cash prioritizes those communities who have trail blazed the Defi / NFT / Blockchain Gaming / Metaverse ecosystem for all of us lovers to enjoy.
The deposit period will be announced soon...
yNFT token holders will receive an extended period of senior seignorage and be distributed NFT Cash first. Then it will be followed by communities from the following projects.
A total of 6,000,000 NFT Cash tokens will be distributed to depositors. For initial parity, the NFT Cash protocol will issue 1 NFT Cash for each $1 in value worth of the deposit asset. The max initial market cap in this case will be totaling $6M USD. Depositors will also receive 50% of their deposit back alongside their newly minted NFT Cash. The remaining proceeds will be used to fuel the NFT market—purchase virtual land, buy rare digital collectibles, and lock up gaming utility tokens such that they are no longer in circulation. This would make NFT Cash backed by real assets should the mechanism invented by Basis ever fail to hold peg in a catastrophic failure.
Depositor Scenario #1 — Stablecoin Deposit
Let’s run through a simple example. Assume Defi Morty deposited 10,000 USDT into the genesis distribution contract.
Upon distribution and withdrawal, Defi Morty will receive 10,000 NFT Cash and 5,000 USDT. A total of $15,000 USD in value is kept by the depositor and they can choose to do anything they want with their insta 1.5x. Defi morty could sell it straight into the NFT Cash / USDT pool if they wish.
Depositor Scenario #2 — Community Deposit
Let’s run through a more complicated example. Assume Defi Rick deposited 100,000 REVV into the genesis distribution contract and the daily high price is $0.06. That is $6,000 USD of value.
Upon distribution and withdrawal, Defi Rick will receive 6,000 NFT Cash and 50,000 REVV (worth $3,000 USD). A total of $9,000 USD in value is kept by the depositor and they can again choose to do anything they want with their insta 1.5x. Maybe Defi Rick will now utilize thew newly minted NFT Cash! He could add 50,000 REVV and 3,000 NFT Cash to the NFT Cash / REVV pool. The remaining 3,000 NFT Cash could be kept as gains.
Depositor Scenario #3 — Deposit Assets AGAIN!
Opportunists will realize very quickly that they could repeat this process over and over again with their returned deposited assets. Let’s resume from Scenario #1 where Defi Morty has already received 10,000 NFT Cash and 5,000 USDT.
Defi Morty can deposit the 5,000 USDT again into the genesis distribution contract. Upon distribution and withdrawal, Defi Morty will receive 5,000 NFT Cash and 2,500 USDT. A total of $7,500 USD in value is kept by the depositor and they can choose to do anything they want with their insta 1.5x a second time… including depositing the 2,500 USDT yet again into the genesis distribution contract.
Why the NFT Cash distribution method is the most fair distribution in the world!
Every single other fair distribution method still gives a large advantage to whales or those who hold large amounts of any given asset. We saw the rich become richer with the Uniswap and 1inch “fair distribution” of tokens.
We believe the NFT Cash distribution method is far more fair than that of Basis Cash or Mith Cash where every depositor is fighting over a share of a limited pool (50,000 BAC and 160,000 MIC respectively).
With the NFT Cash fair distribution, each depositor will realize the full value of their deposit with an extra 50% on top.
The deposit period will be announced soon.
NFT Shares Distribution
Afterward, NFT Shares is distributed to those that provide liquidity to the NFT Cash (NFTC) / USDT Uniswap v2 pair, where users can deposit LP tokens to the distribution contract and earn NFT Shares. The NFTS pool 1 will distribute 750,000 NFT Shares, starting with 6250 NFT Shares and decreases 75% after every 30 days.
A further amount of NFT Shares is given to liquidity providers of the NFT Share (NFTS)-USDT Uniswap v2 pair, distributing a total of 250,000 NFT Share which lasts for 1 year (365 days), and an equal amount of tokens is distributed per day.
Join Our Community
We thank DeFiMorty, DeFiRick, and BigBrother for their trailblazing work in Basis Cash and Mith Cash. We invite the super stars in the NFT, Blockchain Gaming, Metaverse, DeFi communities, and everywhere else to participate in the NFT Cash genesis event. With a strong community of doers, we have no doubt that we will succeed in creating this very important part of the crypto ecosystem.