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exclusive,NFT - 27.05.2021

Creative Tokenomics as Shown by Tezos NFT Marketplaces

There are a few NFT marketplaces on Tezos that utilize their own tokens. Here’s what we know about those tokens and the way they work.

A year ago, the DeFi summer started. The boom was catalyzed by the concept of farming where DeFi app users are rewarded by relevant governance tokens thus becoming the app’s co-owners. NFT marketplaces seem to experiment with similar mechanics. There are platforms using native tokens now.

Introduction

NFT trading on Tezos had begun long before full-fledged NFT marketplaces emerged. It all started with NFT projects selling their collections and offering platforms for the secondary market aimed at those collections. tzcolors was the first of them and it lacked a native token. The first project to roll out one was TezosTacoShop with their RSAL token.

Then there were NFT marketplaces with a native token: Hic et nunc with hDAO and Kalamint with KALA. We shall present those two projects’ economies in the form of answers to three questions: how the token is distributed, what is its use, and how the DAO works.

Hic et nunc

Hic et nunc was the first platform for NFT minting and trading on the Tezos blockchain. The platform was founded by Raphael Lima with the artist Mario Klingemann acting as the ambassador. He announced the marketplace’s launch on February 24, 2021. Over the first month of operation, there were over 25k NFTs minted with a daily turnover of around 20k XTZ. Their hDAO token was released on March 1, 2021.

How is the token distributed?

The token was being distributed among the platform users during the first 45 days of the marketplace’s operation. Each transaction brough both the seller and the buyer 0.5 hDAO. As a result, 651k hDAO had been minted before the issuance stopped. At the moment of writing, the most endowed balance of hDAO comprises 16248.88 hDAO, which is around 2.5% of the total supply of the token. Five addresses contain around 9.4% of the total supply.

What is the token’s use?

Currently, hDAO is used for curatorship. If you own some, your NFTs are listed on the main page of the feed. You also can use your hDAO to promote NFTs. There is a feed at Hic et nunc. The more hDAO have voted for an NFT, the higher it will be placed in the feed.

Sometime in the future, the author of an NFT will be able to use hDAOs used for voting for his or her work in order to vote for some other work. There are also plans to use hDAO to get “potential dividends” and DAO governance.

How does the DAO work?

Hic et nunc does not function as a DAO now, so hDAO has no governance functionality at the moment.

Kalamint

Kalamint was scheduled to launch in January 2021 but the launch was postponed to February 18. Eventually, the marketplace was launched on March 23 and thus failed to become the first NFT marketplace on Tezos. Before launch, Kalamint received funds from venture capitalists including Draper Goren Holm. In order to place an NFT, one has to apply for it and undergo a selection performed by the members of Kalamint Guild.

Initially the platform’s token was called KALA but two months after the launch the team has announced that they will list KALAM at Quipiswap. The post describing the KALA tokenomics was deleted but it was never replaced by one describing KALAM. Therefore, we can only talk about KALA now.

How is the token distributed?

The planned distribution looked as follows:

  • 1 650 000 KALA for seed investors and the private sale
  • 500 000 KALA for advisors
  • 1 750 000 KALA for founders and the team
  • 1 000 000 KALA sent to the project’s development fund
  • 4 800 000 KALA for the community rewards fund (33,333.33 KALA distributed over three years amongst platform users)
  • 120 000 KALA for the 24 members of Kalamint Guild
  • 300 000 KALA for liquidity purposes.

The post claimed the overall supply of KALA was limited to 10m tokens. Still, the sum of all the numbers above is 10,120,000 KALA.

What is the token’s use?

The plan was to make KALA tokens stackable so that one could use them to get a share in the platform’s fees, pay the fees, or participate in the platform governance.

How does the DAO work?

At the time of writing, Kalamint does not function as a DAO, and KALA lacks the functionality of a governance token.

Conclusion

We have compared the tokens by Hic et nunc and Kalamint. They are different in terms of distribution models and use, though they are similar in being intended as governance tokens of relevant DAOs but lacking said functionality at the moment.

Certainly, those are not the only NFT marketplaces on Tezos that develop their own tokenomics. Thus, Bazaar has its own native token, and NFT Button is also developing their tokenomics. We will keep our finger on this topic and cover it in our blog, so subscribe to our social media and don’t miss an update:

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