Bitget Wallet (Previously BitKeep) is initial in providing a differentiated incentive mechanism with noteworthy advantages and potential.

Recently, Kevin, the founder of the Bitget Wallet (Previously BitKeep), said on Twitter that the Bitget Wallet (Previously BitKeep) NFT Market would provide users who contributed to the liquidity with generous prizes, including sharing 50% of all TX fee proceeds on ETH, BNB and Polygon with the top 5 traders. This move is inspired by the economic mechanism of DeFi and NFT-Fi, aiming to solve the NFT liquidity dilemma faced by OpenSea and other platforms from the source – users contributing to the liquidity.

Only when the liquidity is increased can the potential of NFT be fully released

In the first half of 2022, affected by the general economy, NFT along with the Crypto market cooled off and the trading volume remained low. According to the data from multiple mainnets including Ethereum, Polygon, and Solana, compared with that in Q1, the trading volume in Q2 dropped by 60% and the market value decreased by 39%; while the number of NFT holders had been increasing all the way and it rose by 20% in Q2.

Why is the trading volume negatively correlated with the number of holders? For one thing, the bubbles of value are gone as there is no buyer’s market for some NFTs; for another, and also the point of this article: The NFT market, led by OpenSea, is facing a liquidity dilemma.

The NFT is lack of liquidity in nature. Every NFT is unique and even the ones in the same collection are different. So, their trades are easily affected by subjective factors. A trade may fail due to the lack of market depth or large price difference, leaving the relevant collectibles locked for a long time without generating and profit. That’s why there is no agreed pricing standard for NFT assets, which makes it harder to assess the values.

Insufficient liquidity restricts not only the users’ interests, but also the development of NFT. Users want to trade at a fair price in the market and NFT needs a favorable environment to release its economic potential.

What makes Uniswap the leading DEX of DeFi is its core competitiveness in enhancing the AMM mechanism. Any user could create a trading pair and any trading pair can be provided with liquidity, which lowers the threshold for trading.

The “Trade NFTs to Share the Dividends” program proposed by Bitget Wallet (Previously BitKeep) has learned the successful experience from the others: It incorporats the AMM mechanism of Uniswap, “Trade NTFs, Get Rewards” of LooksRare, “Trade NFTs, FREE” of X2Y2 and the practice of returning part of the transaction fees to users.

The two trump cards enabling LooksRare and X2Y2 to compete with the NFT market monopolist OpenSea: one is returning part of the transaction fees to users and the other is offering rewards for trading/listing NFT. Compared with OpenSea, these differentiated designs can well guarantee the liquidity of new marketplaces.

Liquidity is essential to NFT. Finding a new way to increase liquidity will help to unleash the unlimited potential of NFT.

The floor price of NFT will rise when the market sees what the community can do

The incentive mechanism of Bitget Wallet (Previously BitKeep) is quite different from that of OpenSea. ETH does a great job in aggregating popular projects. OpenSea is the sweet home to Bored Ape and CryptoPunks, but it’s not friendly to NFTs that are in their early stages.

The differentiated incentives of Bitget Wallet (Previously BitKeep) allow these new NFT projects to be seen.
The creators of NFT constantly ask themselves: What can people get if they buy my NFT? Besides the value of the NFT itself, there is market space for NFT and the social network and IP tool brought by BAYC. Through “Trade NFTs to Share Dividends”, users who buy top NFT collections in the Bitget Wallet (Previously BitKeep) NFT Market can get bonuses.

Users of Bitget Wallet (Previously BitKeep) who invest in the top 5 NFT collections can get a certain proportion of dividends calculated by ranking. Dividends claimed in your wallet can be traded or withdrawn.

Of course, financial rewards are not the only incentive.
The Web3.0 is no stranger to the word “builder”. For an NFT project, every user who has contributed to the project, who has made a small but useful difference, and who has brought it more attention and traffic is a builder.

With differentiated incentives, builders will take the initiative to promote good NFT projects so as to make it into the Top list and bring more exposure and royalties to the project. In return, as the holders of Top NFT projects, they can get dividends as the project grows.

When community members play a part in the growth of the project, they will be more passionate and develop a sense of ownership. In the process, the market will realize the power of community. And a better and bigger community will be built as the members gain more rights to say and vote.

The key to increasing liquidity is raising the floor price. A bigger NFT community will naturally lead to higher popularity and higher trading volumes, raising the floor price in turn.

The Bitget Wallet (Previously BitKeep) NFT Market, as the first marketplace where NFT can be bought with any tokens, also holds INO (Initial NFT Offering) for new NFT projects. Statistically, Bitget Wallet (Previously BitKeep) NFT Market has more than 200k NFTs listed for sale, more than 1.6 million NFT stored, and $15 million monthly trading volume, positioning itself as the largest NFT trading market on BSC, the 3rd on Polygon and the 6th in the whole blockchain industry in terms of user base and trading volume.

The differentiated incentive mechanism proposed by Bitget Wallet (Previously BitKeep) to boost liquidity still needs further improvement. Nontheless, it’s a step of vision and can be gradually perfected in the future. In the creative world of Web3.0, a way to solve the core problem and find a breakthrough sounds especially appealing. Understanding these new ideas and putting them into practice in advance is the key to getting more wins in the industry.

Explained: What do the Ethereum Merge and Fork Entail?
Bitget Wallet will launch the first K-NFT (Korean NFT) Week on August 29

Leave a Comment

Your email address will not be published. Required fields are marked *