🪙Tokenomics

Concept

NFT technology is used to tokenize the governance of the DAO and the shares of the vault.

Nyx has setup its concept of Asset-Backed NFT from traditional finance to collateralized NFT by DAO’s assets. We give investors permission to position themselves on a very broad portfolio and take part in the decision-making process.

In summary Nyx NFT give:

  • A governance right which allow involvement in the decision-making process;

  • A tokenized share of Nyx Vault;

  • A passive income linked to the Vault performance;

  • An exposure to a diversified and dynamic blockchain asset without the constraints of asset management

  • The co-ownership of the protocol and the revenue linked;

  • An access to Nyx’s future projects;

  • An access to Blue Chip Benefits;

  • An access a knowledge base to grow and learn collectively.

It introduces a new definition of tokenomics with specific utilities associated with an ERC-1155 token.

Nyx NFT Token

This mint corresponds to Nyx DAO fundraising.

Nyx NFT is a ERC-1155 token.

The ERC-1155 token is a standard type of token that has the ability to act as if it were an ERC-20 or ERC-721 token, or both at the same time. The idea is simple and aims to create a smart contract platform that can represent and control any number of fungible and non-fungible token types. A specificity is that all issued tokens have the same properties and are therefore all identical, so it is a semi-fungible token.

This unicity is conferring better market liquidity and more transparent pricing on the secondary market

Improving the functionality of both standards, making them more efficient and correcting obvious implementation errors on the ERC-20 and ERC-721 standards.

Each token ID as multiple composant :

  • Wave number

  • Supply

  • Mint price

  • Voting power

  • Redeem power

NFT Mint

Nyx token is a private mintable NFT :

  • Buyer have to be Whitelisted to mint the token

  • A minting wave can be open/close on proposal

  • The price and quantity available can be set on proposal

The goal is to be flexible and make grow the community over time. First token sales start in september 2022 for OG and private investors.

Waves

A wave is defined by a mintable supply which is calculated with :

  • Total supply = Mintable supply + Team NFT

Each wave is set with multiple composants :

  • Wave Mint price

  • Wave Mintable supply

  • Wave Voting power

  • Wave Redeem power

A wave can be open or close through the proposal procecuss and is tagg by token ID.

Setup fees and Team NFT mint will be generate at the end of the wave :

  • All mintable supply is mint

  • Wave close from proposal process

Point of comparaison

Usually Tokenomics within a DAO was primarily used via an ERC-20 token to participate in governance and evoke voting rights.

To understand ERC-1155 tokens, it is necessary to examine the rather severe limitations of ERC-20 (for fungible tokens) and ERC-721 (for non-fungible tokens, NFT) widely used in the ecosystem

Limitations of the ERC-20 token

A major limitation is the lack of "reaction" to ERC-20 transfer events. The result is that ERC-20 tokens are forever trapped in contracts when users accidentally send tokens to the wrong address. This way, if you transfer to an incorrect ERC-20 address, what you transferred is lost forever.

Limitations of the ERC-721 token

It is impossible to get a token ID directly, which makes transactions difficult. If you have 10 NFTs to transfer to one person, this will require you to make 10 different transactions, with their corresponding commission fees, greatly increasing the cost of this simple operation. In these scenarios, you will have to transfer token by token, being impossible to transfer all 10 at the same time, which is actually quite absurd.

Another problem is the crossing of the ERC-721 tokens. This requires that all the tokens in the contract be traversed in order to provide a response to the DApp and the user in question. Imagine for a moment that an ERC-721 contract has 1 million tokens in its registry, this means that if a person wants to know the status of their tokens, they need to send a transaction to the network that will pass through that million tokens, it will map them to the user's addresses, and then provide the response. That's the biggest demonstration of inefficiency you can have in a system like that.

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