In the next week, three new farms will be added to the Coin Artist Liquidity Mining (CALM) portal. Individuals who hold $COIN, $CRED, and a rotating partner token can stake to earn artwork in the form of fractionalized NFT rewards called shards.
Each artwork will be minted as an NFT and placed into a farming vault. Using NIFTEX, each NFT is decomposed into a finite supply of ERC-20 tokens (i.e., shards) that can be freely traded as divisible parts of the parent piece. Each shard represents fractional ownership over unique pieces, with any individual who holds 100% of the shards for a specific NFT able to take ownership of the creative asset.
NFT Flash Farms
NFT farms are accessed through the CALM portal by staking $COIN, $CRED, or a rotating partner token. Artwork will be assigned to a specific pool and stakers will earn shards based on their share in each respective pool. $COIN and $CRED farms will last 3.5 days while the rotating partner farm will last 7 days. At the end of each period, new artwork will be announced and stakers who remain in the pool(s) will be eligible to earn shards for the next farm.
We’re activelty searching for visionaries who can produce themed artwork for the E-Den community.
The designs should generally adhere to the cyberpunk, glitch, and vaporwave themes portrayed by COIN and can be still images, animations, or multimedia gifs and mp4s. A great example of multimedia NFTs — or ones that combine audio and visual elements — is this piece ‘Elephant Dreams’ from grammy-winning musician RAC.
Artwork can be commissioned or be part of an existing series. Artists will be paid up-front either at the market rate for existing pieces or by negotiation for commissioned work.
Artists receive 20% of the shards for each piece that goes into the farm, providing a means of capturing secondary sales of their generated content.
Shard Distribution & Secondary Markets
For each unique artwork, shards are distributed as follows:
- 75% to stakers.
- 20% to the artist.
- 4% to the COIN treasury.
- 1% to NIFTEX.
We’ve seen numerous examples of shards drawing attention on secondary markets like Uniswap, best reflected by a Mystic Axie named Almace.
In the case of the E-Den NFT farms, shards represent liquid fractions of the underlying piece, meaning holders can freely trade and exchange them with their peers. When a parent piece is purchased outright, all shard holders can redeem their holdings for ETH.
This process, known as the shotgun clause, will be outlined in detail with the release of the first three farms next week. For those who want to do some homework, read up on how this works via the official Niftex blog.
The Buyout Clause in Depth
NIFTEX NFT fractions include a Buyout Clause, which ensures an NFT can be recovered from its fractions without owning…
Why Should I Care?
The premise of NFT farming is one we’re extremely excited to share, especially with direct incentives for $COIN, $CRED, and partner token holders to farm the artwork of their choosing.
We see this as a great way for artists to earn a commission on the up-front sale of their artwork, and as a unique web3 marketing opportunity to get your work in front of new audiences with baked in value capture mechanics through sharding.
All artworks are shared by coin_artist to her 35k Twitter followers while gaining an association with the growing E-Den community and its upcoming projects to better engage members with gamified NFT campaigns.
Participation by artists during this early stage of community building can be a great boon as new features and experiences are eventually launched and tied back into historic collaborations like in-game wearables, puzzle pieces, and access keys.
Coin’s E-Den community members interested in participating should be on the lookout for a launch post next week, marking the kickoff of the first farms and the announcement of our first partner.
More information about our first pieces, the artist involved and the interworkings of the contracts will be published in a separate article before the NFT farms officially open.
We’d like to thank the COIN community for their continued support of NFT x DeFi farming programs and look forward to unveiling the first of many planned series in the near future!
Until then, stay sharp and we’ll see you in the COIN token-permissioned Discord!