How Ukiyo is changing NFTs

As the world changes and moves into newer trends and technologies, it’s safe to say some are going to have a bigger impact than others. Web 3 is something that is here to stay. One of the byproducts of web 3 are NFTs, and almost everyone has been introduced to the immense potential these non-fungible tokens have. They’re poised to change the future of art, videos, games, and more with their almost endless potential.

Among the people and companies that have taken a lead in the metaverse and NFTs is Ukiyo, which is a creative house working in a multidisciplinary manner, building for the metaverse.

Ukiyo understands the importance of the metaverse and how it’s going to shape the future. Web 3 brings with it an opportunity for people to grow and progress into another dimension. Web 1 brought along the linear internet where people could read and look at things on the web. However, this was then overtaken by web 2, which made it possible for people to interact with the internet and thus started the Facebook and blogging era. Now, it’s time for web 3.

Web 3 is where people themselves start to own a bit of the internet. As a decentralized space, many decisions are indeed taken by the people themselves, not a centralized body or a large corporation. It is indeed something that will let people express themselves and develop some of the most amazing products all by themselves.

This is exactly where Ukiyo comes in. They entered this era at a time when not many people were able to see the promise or potential in NFTs and web 3. However, many are now following suit, considering how its capabilities are becoming more and more clear every day.

One of the many ways Ukiyo is changing NFTs is by introducing what they call ‘Loft Staking’. Staking is a way for holders of an NFT project to ‘lock’ their NFTs for a period in return for rewards. This creates a win-win situation for both the company and the NFT holders. The holders are happy with rewards coming in and the company is happy because the value of their project and secondary market sales start to rise. The more the people lock their NFTs, the less of it is in supply – which automatically pushed the price.

However, as great as it may seem, staking has started to show its own set of problems. From staking to unstaking – and to minting rewards – every facet of staking costs gas fees to the end user. And this, to a large degree cancels out the rewards user earns by ‘holding’ onto the NFT. Typically, you are paying $5-$10 in staking fee, where you transfer the NFT from your wallet to the staking contract. You’re paying the same fee again, to get the NFT back in your wallet. And then, you are paying a small fee for receiving the ‘rewards’ tokens.

But – that’s not it. The problems continue. The next one of the many is where the staking mechanism negatively impacts the secondary market sales. For any NFT project, the number of holders they have is a key metric that attracts a potential buyer. A project that has many holders shows a strong community. A project with handful holders says otherwise. Now – with staking, all the holders are essentially transfer their NFTs onto the staking contract which then ‘holds’ the NFT. This drastically brings down the number of ‘holders’ as the staking contract ends up holding majority of NFTs and is considered as ‘one’ holder. And, this – as you can imagine, hurts the project’s secondary market sales.

Ukiyo however, went through this and came up with a solution that they call Loft Staking. Through their project, Tsukimi, they are implementing a passive staking mechanism which is completely gasless and has zero cost to holders. In this form of staking, the NFTs stay in the owner’s wallet where they have full freedom and control over it. But – the longer they hold the NFT in their wallet, the more the rewards they accrue.

The mechanism itself is fully gamified. A way for users to make a ‘journey’ through various levels of the game the more they hold on to their NFTs. Through the staking – they earn rewards, badges, trophies and more! There is also a leaderboard – bonus prices and more!

Through Loft Staking, once you enter the game (which is essentially a dapp), your wallet address and NFT are recorded. As you progress through the game, you get more rewards and unlock more benefits. People that hold multiple NFTs get exclusive perks as well!

In short – this method of staking gives complete control to the holder to use their NFT as they wish, instead of ‘locking’ it away. This also keeps the holder count high on places like OpenSea, thus, positively impacting the secondary sales. And most of all – it’s completely gasless. The holders do not have to ‘spend to get rewards’.

LA Weekly