Mintable Launches ERC-721ex Protocol to Revitalise NFT Market
Dec 10, 2024
2 min read
Mintable, a Singapore-based non-fungible token (NFT) marketplace, has launched the ERC-721ex protocol, aiming to breathe new life into the NFT market, which has experienced a staggering 96% decline in value. This innovative protocol allows NFT collection owners to create Community Tokens, providing a much-needed lifeline to projects that have suffered significant losses.
Key Takeaways
Launch of ERC-721ex: Mintable introduces a new protocol to revitalize the NFT market.
Community Tokens: NFT owners can create Community Tokens, limited to one per collection.
Fair Pricing Mechanism: Tokens are allocated using a bonding curve to ensure fair pricing and reduce bot interference.
Decentralized Governance: Establishes a universal DAO for each NFT collection, empowering community governance.
Significant Trading Volume: The protocol achieved $2.32 million in trading volume within the first 24 hours.
The ERC-721ex protocol is designed to harness the current interest in meme coins, allowing NFT collections to be traded based on their cultural significance. By merging the ERC-721 standard for NFTs with the ERC-20 token framework, this protocol represents a community-centric evolution in the use of NFTs on the Ethereum network.
Mintable's initiative aims to return control of online community development to users, particularly in cases where project founders have abandoned their initiatives. The protocol not only facilitates the creation of Community Coins but also provides NFT ecosystems with tools for community-led value creation, governance, and incentive alignment.
The Mechanics of ERC-721ex
Community Coin Creation: Each NFT collection can create one Community Coin, fostering a sense of ownership and community.
Bonding Curve Allocation: This mechanism ensures that the pricing of Community Tokens is fair and transparent, minimizing the risk of bot interference, which has plagued meme coin trading.
Universal DAO: Each NFT collection will have its own decentralized autonomous organization (DAO), giving community members governance rights and a voice in decision-making.
Mintable's CEO, Zach Burks, emphasized the importance of community in the NFT space, stating, "NFTs have always been about the community; we must learn from their drop in value and ensure that we are developing for 96% of users who have lost value and their communities they once believed in." He further expressed the goal of the 721ex protocol to empower users to reclaim the social value of the NFT movement and shape the future of their communities.
Future Implications
The ERC-721ex protocol is a first-of-its-kind initiative that unlocks new engagement and liquidity opportunities across NFT projects. By allowing NFT owners to transform their NFTs into meme coins, Mintable is paving the way for a more vibrant and community-driven NFT market.
As the NFT landscape continues to evolve, the introduction of the ERC-721ex protocol could signal a significant shift towards community empowerment and decentralized governance, potentially reshaping the future of digital assets and their value in the marketplace.
Sources
Mintable launches ERC-721ex protocol to revitalise NFT market, Yahoo Finance.
Mintable launches ERC-721ex protocol to revitalise NFT market, International Accounting Bulletin.