NFA
Capturing the Future Value of Tokens: Arken Finance Introducing Non-Fungible Airdrop (NFA), Allowing Token-Airdrops to be Minted and Traded as NFTs
Last updated
Capturing the Future Value of Tokens: Arken Finance Introducing Non-Fungible Airdrop (NFA), Allowing Token-Airdrops to be Minted and Traded as NFTs
Last updated
Non-Fungible Tokens and Its Under-utilized Applications
NFTs are Non-Fungible Tokens that can be regarded as unique and irreplaceable assets in digital form. Such exclusivity grants NFTs to be attractive and as valuable as the market makes them. Currently, the concept of the uniqueness of each token/asset is vastly used in the entertainment, music, art, collectibles, and gaming industries. However, it has not, yet, proved to be much effective in other areas.
Today, Arken Finance intends to positively disrupt another part of the DeFi landscape by utilizing the concept of NFT by introducing this captivating campaign to everyone!
What is an Airdrop in DeFi and the Downsides Behind Them?
To understand NFA, one must understand the concept of giving out airdrops. Airdrops in DeFi are marketing events, often used as a way to generate demand for a specific coin/token when project owners or developers give out free tokens to individuals, which may turn out to be worth a fortune when they get listed on exchanges. With airdrops, it seems like everyone is a winner. But, sometimes there are some downsides to the airdrops.
Firstly, oftentimes DeFi projects will have to face ‘airdrop hunters’. Unlike real token investors or traders who see the potential in each project, in most cases, these airdrop hunters will sell tokens immediately once they are able to do so. This can adversely affect the token economy and the value of the token.
Secondly, airdrops have been proven to show significant value to marketing projects, and their tokens. However, with the current crypto-market situation, many projects, including Arken Finance decided to postpone the ICO/IDO schedule to wait for a better market vibe, resulting in the under-utilized token value that should have benefited both projects and the potential holders.
With the economical factors mentioned above in mind, we still believe that our decision was made for the best of the project and also for the benefit of our winners. However, we totally understand that some of the winners may want to have the liberty to trade or liquidate the tokens. Arken Finance sees the opportunity for a solution. We are the first to come up with applications of the NFT-concept to “airdrops”. The team believes that, along with our strong technical capabilities, we can revolutionize how DeFi projects giveaway airdrops and how holders and buyers can benefit from holding those airdrops.
In November 2021, Arken Finance launched an Airdrop Campaign, aiming to give away future $ARKEN to participants of the campaign. Yet, the IDO was postponed from the unexpected market situation. Today, the team is extending the whole process of our 1st Airdrop further by being the first mover in launching the world’s first Non-Fungible Airdrop (NFA).
What are NFAs and the mechanics behind them?
NFA or non-fungible airdrop is firstly introduced by Arken Finance to represent the true value of the $ARKEN airdrop rewards before the initial DEX offering (IDO). The NFA is introduced with the objective of unlocking airdrop benefits to 2000 winners of the 1st airdrop and a chance to trade their part of the rewards before the $ARKEN IDO. Each NFA will be distinctive to each ranking, storing a different amount of $ARKEN tokens and perks and benefits to them. Holders of these NFA will be able to claim $ARKEN stored on that NFA, once the token is launched in the future.
Apart from the actual token value that they store, Arken NFAs also store special airdrop perks and exclusivities for holders to enjoy their trading journey on our platform. Airdrop holders can mint the NFA, then either hold & enjoy benefits or trade them on the marketplace to make profits. In addition to this, Arken Finance has reserved a ‘buyback pool’ to repurchase some NFAs back from those who wish to sell their NFAs in the market.
To give a clearer example, the Winner, ranking 5th place, will be able to mint an NFA with 175,000 $ARKEN stored in it. That particular NFA will give him/her the perks and benefits that no one else has, as they are different from each other (tiers of each NFA will be announced later this month). Furthermore, if the owner decides to hold the NFA until the public launch date of $ARKEN, he/she can claim that 175,000 $ARKEN stored in the NFA at that point in time. Once exercised, the original NFA will be exchanged to an NFT with no $ARKEN embedded.
The innovation lying behind NFA involves applying two different concepts together: NFT and airdrops. The promise we have for our airdrop winners is to give them the token when it launch. That’s very similar to the ‘Futures Contract’. Since each winner receives a different prize, that makes each Futures Contract unique. Hence, they are non-fungible.
The Non-fungible futures token that we are introducing now is a Futures Contract in the form of NFT. As the name state, each NFT will be embedded with at least one special property: A Futures Contract. In this case, the holder will be able to claim the token equivalent to that specific prize.
When we launch our token in the future, there will be a mechanic for the NFA holders to exercise the futures contract. Once exercised, the original NFA will be exchanged to an NFT with no $ARKEN embedded.
“In short, we are capturing the value of the future tokens.”
Arken Finance is now sampling the first NFA project with our own Airdrop Campaigns. However, the team strongly believes in this application and is confident that this technology can be marketed to DeFi project owners in the future.
There are 2 ways that NFA owners can enjoy after minting them. First option: you can enjoy the instant return by trading the NFA at the peer-to-peer marketplace. Arken Finance will also repurchase of NFAs from our reserved buyback pool. However, if you are here for the long-term, valuable benefits with Arken, the second option is here for you: ‘hold & enjoy the benefits.
If you are one of the Arken Finance’s NFA holders, these are the applications for having these NFAs:
Enjoy a personalized exclusivity: owning your limited-edition of Arken NFT Avatar (this will also be displayed on Arken Finance when you connect your wallet!).
Unlock airdrop round 2 special perks (different NFAs will have different characteristics and abilities during airdrop round 2).
Enjoy discounts and free trials on future premium features on Arken Finance.
Redeem $ARKEN once the token is launched. The NFA will be destroyed once redeemed.
Arken’s NFA will be available for minting within May 2022. Once again, minting this round of NFA is exclusively reserved for the first 2,000 winners in the Ranking Campaign (Trading Competition) from the 1st $ARKEN airdrop. So, if you are one of the winners or know one, do not forget to let them know about this so that no one would miss out on this opportunity.
For those who missed out on Airdrop Round 1 and wanted to get a hold of the NFA, you can either trade for the NFA that you want, or wait and join the Airdrop Round 2. It’s definitely coming soon!
Curious about what special properties will be embedded within the NFA? The detailed information on how to mint NFA will be given in the next medium blog so be prepared to hop into the rocket to the future with Arken Finance.
