KIRA Network launches NFT pledge service to release NFT asset liquidity
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Original Title: "KIRA & NFTs Staking" Original Source: KIRA Network
On February 26, KIRA Network published an article exploring the concept of NFT, payout pools, token baskets, and explaining how to use NFT to generate passive income for its holders. In this article, you will also learn how NFTs interact with the KIRA network to improve its security, and discover new mechanisms that provide market access and price discovery for non-fungible assets.
NFT (Non Fungible Tokens) is a unique digital representation of tangible or intangible assets;
Stake NFT through MBPoS (Multi Bonded Proof of Stake) consensus to ensure the security of KIRA Network;
KIRA Governance will define interest rates for pledged NFTs;
Resettable NFTs on KIRA can be split and used for lending, trading or other operations;
What are NFTs?
KIRA will "basket" tokens with lower value to efficiently create "NFT baskets";
Upcoming activities: Use NFT to mine KEX, or get KIRA NFT rewards by staking KEX.
What are NFTs?
Let's explain what an NFT is from the beginning. NFT is an acronym for Non-Fungible Token (non-fungible token), which represents a unique tangible and intangible asset that represents uniqueness. These assets may represent a piece of art, such as a physical painting or unique digital art, or a game item such as a skin, weapon, or character. Like their original tangible and intangible assets, NFTs are unique, meaning they are non-fungible.
Currently, most NFTs are created on Ethereum using the ERC-721 or ERC-1155 standard, however, new EVM-compatible networks such as Binance Smart Chain are already adopting similar ERC standards to support NFTs.
Current NFT field
Over the past few years, we have seen tremendous growth in NFT adoption. Their ability to represent many different asset types, scarcity, collectability, and the growth of the digital real estate market all continue to establish NFTs as one of the dominant asset classes.
At the same time, NFT still faces challenges in terms of liquidity, and most of them are purchased through HODL strategies (similar to the real art world, where buyers keep works for several years), thus limiting transactions and liquidity. Some were even burned/destroyed to increase the scarcity of the work. KIRA's solution to the liquidity challenge is to lock NFT assets to generate passive income, while continuing to retain full custody of NFT and be able to realize the value represented by locked assets.
Secure blockchain with NTF
There is a natural synergy between non-fungible tokens and the KIRA network, as these assets add value to the security of the KIRA network, but due to the unrestricted flow of risk on these assets, KIRA network activity increases with a corresponding return on network fees. KIRA’s Multi-Bonded Proof of Stake (MBPoS) consensus enables the staking of NFTs by automatically issuing 1:1 staked derivatives that represent all staked tokens regardless of their fungible or non-fungible assets type.
How does NFT staking work?
To facilitate NFT staking, users transfer their NFTs to the KIRA network and submit a request transaction that enables KIRA network governance to assign the corresponding interest/yield to the asset. If whitelisted by management (determining that the asset brings value to the network), the NFT can be staked, and its delegator can claim block and fee returns, just as the delegator can do for any fungible asset.
KIRA Network governance defines APY (Annualized Percent Yield) for staking individual NFTs and their tokenized baskets. The reward rate depends on such factors as collateral price/total value locked (TVL) will such NFT contribution, and how much network activity will increase due to their circulation and use within the network. This mechanism not only guarantees the security of the KIRA network, but also guides the flow of assets into the network to optimize the revenue generated by the network and all dapps deployed in the network.
NFT pledged derivatives
For each delegated NFT token, a 1:1 staked derivative (sNFT) will be issued to token holders. sNFTs are transferable and can be traded directly on the KIRA network via OTC swaps, dedicated order books, automated market maker pools or auctions.
All NFTs and their derivatives on the KIRA network can be refinanced, which means that they can be divided into several small parts and treated as fungible assets, which is not possible in today's traditional NFT. Fungible staking derivatives can further earn a fraction of block and fee rewards based on governance-mandated interest rates.
"Cutable" NFT
KIRA Network's re-fungible NFT enables its owner to divide (create divisible shares) other non-dividable NFT products, so that they can be used by others for lending or trading. In this case, the original owner will have the ability to buy back the asset at net asset value (NAV). This ability enables seamless price discovery of high-value assets,
This functionality enables seamless discovery of prices for high-value assets, such as real estate, where one NFT asset may represent a collection of many other fungible assets. For example, an NFT representing a physical building might be a collection of NFTs representing individual units/apartments within that building. The owner of the tokenized asset will hold full ownership (according to local laws and regulations) as long as he/she is an accredited investor. He/she will also be required to post a security deposit to guarantee the legitimacy of the asset and its value.
payout pool
Users who hold NFT assets and apply to earn income from traditional assets (such as real estate leases, ticket sales, art galleries, or other sources) can incentivize other users to acquire and trade NFT assets or sNFT shares, automatically or manually (depending on mode of operation) to distribute deposit profits to shareholders.
token basket
KIRA Network will further enable "baskets" of lower value tokens, effectively enabling the creation of NFT baskets that can be exchanged in a manner similar to fungible tokens by using KIRA's permissionless interchain swap protocol Trading. Token Baskets and NFT "re-framing" enable KIRA to provide a feature-rich and liquid marketplace for traditional NFTs.
"Token Baskets" can be created by one or more users, or by the network's governing body. Owners of these “baskets” will have the ability to whitelist any tokens, fungible or non-fungible, thus making deposits into their “baskets”. Token holders who deposit whitelisted assets into the “Token Basket” will receive fungible bTokens representing their stored assets, which can be traded and even staked.
Redemption of the original asset is possible when users return btokens to their issued "token basket". Users who redeem NFTs from the basket will receive a random asset from the pool in proportion to the number of btokens returned. This ensures the fairness and integrity of bToken market prices.
So, what does this all mean for such a dynamic and growing digital asset space? Through KIRA Network, NFTs will gain new utility as investable assets while maintaining what was previously reserved only for traditional/alternative cryptoassets Liquidity level.https://kira.networkNFT buyers will have the ability to monetize their assets and use their tokens without compromising security or having to rely on a central custodian to provide market access. A liquid marketplace will increase demand for NFTs and incentivize creators and artists to create new collectibles, increasing their earning potential. Companies and projects that create digital assets can partner with KIRA to become pioneers into the infinite economy of the interchain ecosystem.
Upcoming NFT Staking on KIRA
KIRA's first NFT works will be released by several well-known artists in the encryption field, and there will be several common, uncommon and rare NFT works. KIRA Network will pass
