NFTs: Innovation Through Diversification

Never has it been more apparent that the world of money is evolving, modernizing, and adapting to the needs of its users. The future is now.

A core concept of Magnet DAO is to transform its Innovation Fund and maximize its EV to its stakeholders and investors. This includes expanding the potential reach of our business model to a variety of promising projects that have emerged and evolved in the blockchain ecosystem.

NFTs have managed to create a rather large stir in the crypto-community. From the CryptoPunks projects, for which certain pieces now are valued as high as $7.8 million, to the announced Shiba Inu NFTs that have gained a large following, it is undeniable that a certain importance can be attributed to the concept of NFTs. Ignoring it would be a waste of potential and opportunity.

NFTs have proven time and time again that they do indeed possess material value. Harnessing the possibilities that come with them, Magnet DAO is proud to announce its intention to utilize and work with tokenized images that act as a store of value and provide a unique array of benefits. Seeing the move by PayPal to buy the CryptoPunks Project and the SigilFund’s $384k investment into Aurory on Solana should cement the notion that blue chip NFTs are garnering attention from institutional investors.

One way that the Innovation Treasury plans to maximize its returns for stakeholders is to invest in motivated and ambitious NFTs in the early stages. Our thesis remains simple but effective: NFTs with use-cases on emerging platforms have high upsides as blue chip investments. Therefore, if the DAO votes in favour of its adoption, we can allocate the necessary funds.

For a better understanding, some examples can be found below:

I. The Freys:

Micro Thesis: the Frey project aims at being the digital identity within the Freyala Network which is scheduled to launch on Harmony ONE. Owning a Frey guarantees certain advantages within the Freyala world. Some of them include:

a) Extra Harmon inventory space,

b) More YTA currency rewards from staking (conveniently increasing per Frey owned),

c) Numerous airdrops, such as for plot, Harmon, or events,

d) Plot integrations (through raids and more).

An important characteristic of the NFTs is that they are used as one’s own in-game avatar. Being able to select your own Frey in-game allows you to activate the benefits that come from it. As if this weren’t all convincing enough, owning a Frey grants beta access to CryptIDs. The passive rewards obtained in the future regarding Harmons and the evident bufs for Frey holders has prompted Magnet DAO to launch an in-depth investigation of how such an NFT project can be integrated into the Innovation Treasury.

II. Tranquility City

Micro Thesis: Tranquility City is the first metaverse on the Harmony blockchain. Limited to only 2,500 houses and 10,000 citizens, it is ensured to have a high demand. The project received a Harmony Grant based on its innovative nature and unique selling point. By investing into projects that have already passed the vetting process from other renowned programs, we can limit the risk factor while still preserving high returns. Tranquility City recently launched its NFT collection were the high tier houses were sold out in 2 minutes. Join their discord!

Macro Thesis:

The Harmony Blockchain is an ideal environment for the cultivation of gaming projects and ventures. GameFi has seen sporadic growth in recent times, and is gaining in prominence. Given that Harmony as an ecosystem is still rising and evolving, the potentials are limitless. Blue chip NFTs on Harmony are (as of now) not yet present, given that there is no marketplace for collections. For this reason, both Tranquility and Freyala are building their own; and investing at this early stage means high expected profit despite relatively low risk.

III. Crabada

Micro Thesis: Crabada is a play to earn game on the AVAX blockchain. The Dapp features a Idle game with a marketplace and breeding in Nov 2021, with a battle game releasing in early 2022.

1. Crabada secured investment from the Avalanche Foundation
2. The ERC-721 NFT assets have in game utility. Crabada can be bred and used in games to earn cryptocurrencies with real value
3. Bullish roadmap:

The AVAX ecosystem is rapidly developing. AVAX reached a $20 billion marketcap from its $2 billion lows in august, and with it the TVL on AVAX sky rocketed towards $10 billion. Unlike other chains however, this growth has not been replicated in the NFT sector. We expect Crabada to lead the surge and capture the NFT momentum when the TVL moves from defi into NFTs.

In Conclusion:

Magnet DAO is excited for the future of NFTs and warmly welcomes any future collaborations with such projects. All projects which receive the approval by the DAO will be added to the collection within the Innovation Treasury. Magnet DAO aims to use these NFTs as a digital identity for all users interacting within the Magnet DAO ecosystem. We hope to build and expand our NFT collection to showcase an ensemble of unique, exclusive and unparalleled projects, all with the support and validation of our stakeholders.

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