The NFT-marketplace NiFi Club in February announced a pilot product — Endorsable NFTs.
The essence of NiFi Club’s innovation is combining two NFTs in one.
What is Endorsement?
Endorsement is a direct on-chain interaction between an Influencer and their Follower (the NFT owner) when an NFT turns into an Endorsable NFT.
To get an NFT endorsed, the NFT owner has to offer an endorsement price to the Seal owner (Influencer). Seal owners endorse NFTs at their discretion depending on price and other factors.
Main campaign scenario for Endorsable NFTs
An Influencer co-operates with an Artist and gets a percentage of sales from the Artist’s works and proceeds from Endorsements. Endorsed NFTs participate in lotteries.
Step 1: The Influencer gets one or more Seal designs and deploys the respective Seal tokens.
Step 2: The Artist prepares their collection(s) of NFTs for launch jointly with the Influencer.
Step 3: NFTs are issued originally to the market without Endorsement (i.e. without a Seal), or only with the Artist’s Seal.
Step 4: Followers purchase NFTs. Revenue from NFT sales will be distributed between the Artist and the Influencer. All transactions are recorded in the blockchain.
Step 5: NFT owners will apply for token Endorsements from the Influencer to participate in lotteries/activities.
Step 6: NFTs will be endorsed by the Influencer’s Seal, with a preset minimum price for this Endorsement. All endorsement transactions are easily monitored.
Advantages of Endorsement
For NFT owners: great appreciation of NFTs endorsed by an Influencer
For Influencers: direct monetization via Endorsements and capitalization via the Seal token’s market price.
The nature and scope of the campaign may differ.
For example, an Influencer issues their own NFT, and co-operates with other Influencers to exchange Endorsements. Specific combinations (NFT + Endorsement) guarantee additional benefits/promos to Followers, such as the opportunity to participate in voting, promo actions, etc. The proceeds from Endorsements are distributed among Influencers.
NiFi Club has developed a new type of NFT contract — 4Ever, which consists of four stamps with the same Seal. Once the 4Ever contract is deployed, the stamps can only be traded as a set.
Mechanics like these are relevant, for example, for gaming. Gamers might collect a combination of NFTs endorsed by a gaming platform, and endorsed tokens might get some privileges or options.
Nifi Club has thus become the first NFT platform to introduce Endorsement. The developers expect that this technology could become a serious alternative to referential mechanics. Let's see how Endorsement changes the NFT market!
The release of Endorsable NFTs is expected soon. For now, anyone can test the product on the Nifi Club marketplace.