Drops Announcement: Platform Details and Tokenomics
Since the moment they became popular, a majority of collectible NFT assets have remained idle and under-utilized, sitting in wallets until they are resold. Digital creators themselves have also faced their own problems, especially in being discovered among more-established artists.
This is where Drops comes in.
We created Drops with the aim of connecting digital collectors with creators, while adding more utility to NFT assets.
Drops users will be able to earn a return on their NFTs, by depositing them into Vaults to earn dPoint tokens. dPoints can be considered as “coupons”, which can be used to cover purchases within the Drops marketplace. For every purchase, users can also get cashback in DROP tokens. Platform governance will be done through NDR token.
Artworks will be sold on the platform in two distinct ways:
1. Limited-edition “drops”
2. A traditional marketplace
To avoid excessive Ethereum gas fees, the Drops platform will be built on the Matic Network, offering a gasless experience.
What are “drops”?
Drops are limited-edition artwork releases, with participation via a raffle. This is a common mechanism used in the real-world, which:
a) Enables fair participation for all buyers
b) Improves exposure for the creator and the collectible items being released.
In the case of the Drops platform, drops serve as a launchpad for rising digital creators. When new artists come to the platform, a drop is organized to give them a kick-start.
All users will be able to view the artworks which will be available in a drop, but in order to make a purchase they will have to participate in a raffle.
Raffle tickets for each drop will only be available for a limited period of time. Each successive ticket purchased in the raffle will become more expensive, rewarding early participants. ETH, DROP, and NDR will all be accepted for raffle ticket purchases, with partial payment accepted in dPoints.
All ticket purchases will also receive cashback rewards in DROP tokens.
Once a raffle ticket sale is over, users can use their ticket to redeem a randomly-selected NFT from the Drop’s collection. All tickets have the same chance of redeeming even the rarest artworks, no matter the price paid for the raffle.
Any unsold or unclaimed artworks will be sent to the burn address.
Overall, the Drops raffle process ensures a fair artwork distribution, preventing users from being front-run by bots.
NFT vaults bring much-needed utility to NFT assets by allowing them to earn yield in dPoint tokens, which in turn can be used in Drops ecosystem. We aim to support all major NFT assets in our NFT vaults. Each NFT is assigned a “weight” to calculate the user’s pool share. These weight points will depend on an asset’s value and rarity. The dPoint yield allocation for each NFT vault will be decided via community vote.
For every purchase, users can receive cashback in our native DROP tokens. The percentage of the purchase given as cashback will depend on the amount of LP tokens staked by the user. Cashback rewards will be instantly redeemable upon each successful purchase.
dPoint tokens are rewarded for staking NFT assets in our vaults. They can be claimed to a wallet, but they are not transferable. Instead, dPoints are used within the ecosystem like coupons that can cover up to 90% of an asset’s price.
1 dPoint will be equal to 1 USD. So, for example, if an NFT is set for sale at $1000, it can be purchased for 900 dPoints + $100 worth of ETH, DROP or NDR. Any other combination of dPoints and one of the accepted cryptocurrencies is valid, as well as outright payment in ETH, DROP or NDR.
The DROP token
As the official utility token of the Drops ecosystem, $DROP will be accepted as the primary method of payment for buying and selling NFTs on the platform.
The DROP token will also be used to pay users liquidity mining rewards and cashback rewards on Drops purchases. Users can stake these DROP tokens to earn dPoints — non-transferrable coupons which are redeemable for the purchase of NFTs within the platform.
Finally, the DROP token will be utilized in future functions and promotions on Drops, such as participation in NFT raffles.
Total supply: 1mln DROP
The NDR Token
The NDR token will remain as the governance token of the Drops platform. Through community voting, NDR holders will collectively decide which NFTs should be added to the vaults and what their points allocations should be.
$NDR will also benefit from the Drops ecosystem in the following ways:
1. Being accepted as a form on payment on Drops platform
2. Receiving a share of Drops platform fees
3. Earn $DROP and dPoint tokens by staking NDR-ETH, $NDR
4. Being able to farm exclusive artworks from Drops (via HASH).
Stay up to date
If you want to keep up to date with Drops and Node Runners DAO, follow the links below: