NFTY DeFi Protocol $NFTY

NFTY DeFi Protocol is an innovative blockchain platform that employs the DeFi utility token, NFTY, to create a reputation layer for NFT auctions. The protocol uses economic incentives, gamified staking, and "farming" activities to crowdsource reputation data. This unique process enables participants to contribute to and gain from the endorsement of NFT auctions.

NFTY Tokenomics

The NFTY token serves a crucial role in this protocol. Rewards from the final payout of any auction are distributed to a pool of “endorsers” or “advocates.” These rewards are proportionate to each token holder's respective endorsement allocation amount, in NFTY tokens, to auctions on NFT exchanges which support the protocol. This incentive presents the exciting challenge of defining the best strategy to “endorse” auctions based on various factors, such as the ability to close the sale, the potential final payout amount, and the quality of the NFT being auctioned.

Strategy and Rewards

The reward distribution is proportional to the social power of all advocates. For instance, if Person A allocates 10 NFTY to an auction and Person B allocates 20 NFTY, Person A will receive 1/3 of the 7.5% advocacy reward. During an auction's bidding period, allocated NFTY tokens are locked and can only be unstaked after the auction is completed and the NFT is sold. This process encourages a range of possible strategies without incentivizing the endorsement of inferior products or spammy content.

Staking and Token Supply

The NFTY token supply has no cap, but can only be increased through staking which yields a 13.579% APR. Staking is required to enable the endorsement/advocacy mechanisms within the NFTY DeFi Protocol. It also acts as a filter and data analytics platform where a user can determine the degree of desirability, expected sale, and potential value of an NFT. Thus, NFTY DeFi Protocol offers a robust and participatory platform for NFT enthusiasts and advocates.