Let’s begin with the basics here. Non-fungible tokens have become one of the main topics in the world right now, but what exactly does an NFT mean? NFT can be defined as a digital asset that can represent different types of internet collectables, such as art, music, games and so on.
These collectables have an authentic certification that is created by blockchain technology, and they cannot be forged or manipulated in any way whatsoever due to their unique properties.
NFT exchanges take place with cryptocurrencies such as Ethereum, and the majority of NFTs reside on its blockchain, which is a distributed public ledger that records transactions.
NFTs represent individual tokens that have valuable information inside, and as they have a certain value that is set by the demand of the market, people can buy and sell NFTs, just like any other physical type of art.
As every NFT has unique data characteristics, it is very easy to verify and validate their ownership, so people don’t have to worry that someone can steal, copy, or take away their own NFT. With its unique signature, once you own it, it is all yours until you decide to sell it.
Where are NFTs Used?
Crypto trading is developing at a very rapid pace, and people interested in it often use NFTs. Some of NFTs’ uses are for:
· Digital content — arguably the most significant use of NFTs today. Creators here have their profits enhanced by NFTs, as they power a so-called creator economy where they have the full ownership of their content
· Gaming items — gaming has always been popular and it is likely to remain that way in the near to long-term future. NFTs have attracted a lot of interest from game developers. There are tons of benefits NFTs can provide to the players, such as buying items for their games.
· Investment and Collaterals — NFT and Decentralized Finance (DeFi) used the same infrastructure, and DeFi apps will allow you to borrow money using collateral, and by working together, NFT and DeFi can explore using NFTs as collateral. In addition, some NFT projects also provide the NFT owner with some form of token staking.
What is an NFT Marketplace?
An NFT marketplace is just like any other market where people sell and buy goods. So, it is a place where buyers will meet sellers, and this is where NFT wares are stored. You can buy tokens at a previously set price, or there can be some auction where you can place your bid.
As the NFT marketplace is digital, there is a mechanism in place that will regulate all transactions between participants. Smart contracts come into play here, which are self-executed transaction protocols that help with facilitating trades between users.
Some NFT marketplaces centre around one particular industry and you can find limited goods there, but others offer a whole different range of NFTs, which can go from game items to web domains, trading cards — you name it.
PixelPugs — What are They?
PixelPugs represent a provably rare and unique artworks that are limited to 10,000. All of them are generated from different attributes/traits, and each PixelPug has its own unique traits — some are rarer than others.
The PixelPugs community consists of all types of people. You can find NFT collectors, dog lovers, and many more. Owning a PixelPug will give you a chance to vote on how the community reward wallet is distributed and utilized, so there are tons of benefits joining the PixelPugs community.
Have in mind that, in the community, the number of votes depends on the number of pugs you have. One pug equals one vote, so the bigger your pug number, the better chances of becoming a relevant factor in the decision-making system.
Masternode — Staking
The difference with other NFTs is that PixelPugs sales, will mostly be reinvested in so-called Masternodes. Nodes run on servers where they validate transactions, which in its turn, reaps rewards — just like miners.
You will have different nodes for different chains, all with different rewards. This is what makes PixelPugs different and this is how value is added to the community. The rewards generated with this system will be put in the community reward wallet, and the community itself will decide what to do with those funds. Reward to the community? Reinvest in new nodes? Flip other NFT projects?
There is no hard staking in PixelPugs, as the creators don’t want to bother the community with very high gas fees to earn rewards.
PixelPugs is not dependent on secondary sales to sustain, as rewards are more stable and sustainable rather than NFTs launching their own token and having to keep coming up with utilities to keep the price from going down. Sustainable tokenomics is the pillar of PixelPugs.
The PixelPugs roadmap can be found on their website, and it is explained in detail all the steps that are due to be taken.
The marketing campaign and the launching of the PixelPugs website come first, followed by setting up new nodes for the sale of every 500 pugs. Around 20 new nodes will be set up for each 500 pugs sold, and the rewards will be sent to the community reward wallet on a monthly basis.
The third phase covers the setting up of DAO (Decentralized Autonomous Organization, which is represented by rules set in a computer program and controlled by members of the organization, not a central government).
The fourth step is voting by the community for the future of the project. Remember, one pug equals one vote.
Lastly, it is worth mentioning that the mint price will be 0.08 ETH, and you can mint a maximum of 5 PixelPugs. Launch date is set to be December 11th 2021.