NFTX DAO

What is NFTX?

NFTX operates as a decentralized autonomous organization (DAO), where NFTX token holders vote on decisions taken by the DAO. The following definitions are meant to draw distinctions between the different areas of “NFTX”:

  • NFTX Governance: A decentralized system for NFTX token holders to manage decisions taken by the NFTX DAO. A variety of tools are used to help faciliate this process.
  • NFTX DAO: The DAO which develops the NFTX protocol. The DAO also develops the NFTX App.
  • NFTX Protocol: Ethereum based smart contracts that manage the creation of liquidity pools, and the peer-to-peer trading of assets within these pools.
  • NFTX App: A web app that allows users to easily interact with the NFTX protocol. This app is one of many ways to interact with the NFTX Protocol.

Why NFTX exists:

NFTX’s mission is to be the primary provider of liquidity for NFTs. By solving the liquidity problem, NFTX can be used as a “money lego” for projects to build financialization tooling for NFTs.

This will allow NFTs to have the same financial flexibility as available in Defi, increasing their utility as an asset class.

DAO Tools

To help facilitiate the DAO process a number of tools and processes are used.

Discord

Link: https://discord.gg/nftx

Discord is a place where the day to day discussions about the DAO, protocol, and product take place.

Any new ideas or proposals should start off with a discussion in the Discord before moving over to the Discourse Forum.

Discourse Forum

Link: https://forum.nftx.org

The Forum is second step for any proposals. Due to the unorganised nature of Discord, once an idea shows promise it should be moved to discord for a more structured conversation with linear easy to follow threads.

Once an idea has been fleshed out enough on the forum a poll is run for a minimum of 3 days with a quorum for at least 5 votes and a majority in favour to move to the proposal to Snapshot.

Snapshot

Link: https://snapshot.org/#/nftx.eth

Snapshot is the third step in the Governance proposal process and the first that requires NFTX Tokens to participate.

Anyone with at least 1 token is elligible to create a proposal and you need to be holding NFTX tokens when the votes are cast to be able to vote on the proposal.

Once the forum proposal has passed, it can be added to Snapshot with the following quroum requirements.

  • Minimum Quorum: More than 10% of circulating, non-treasury NFTX must participate for a proposal to Pass.
  • Passing Threshold: More than 66.6% (2/3rds) of voting tokens must vote FOR for the XIP to Pass. For changes to the NFTX contract, more than 70% of voting tokens must vote FOR the XIP to pass towards on-chain voting.

Snapshot is used as a gasless way to vote on DAO proposals, and the DAO will enact the proposals as per the votes on Snapshot either through Aragon or the Multisig

Aragon

Link: https://client.aragon.org/#/nftx/

Aragon is where the DAO was intially formed and usually holds the "keys" to the protocol and the NFTX Treasury assets.

Aragon voting costs gas and requires a 7 day voting period before executing and maintains the following quorum requiredments

  • Minimum Quorum: More than 5% of circulating, non-treasury NFTX must participate for a proposal to Pass.
  • Passing Threshold: More than 66.6% (2/3rds) of voting tokens must vote FOR for the XIP to Pass. For changes to the NFTX contract, more than 70% of voting tokens must vote FOR the XIP to pass towards on-chain voting.

The DAO is currently running on the original Aragon version which required an upgrade to change the voting lengths and quorum requirements, during which the control of the assets were moved to the NFTX Multisig.

NFTX Multisig

Link: NFTX Multisig

While the upgrade to Aragon happens and the rollout of the NFTX V3 the treasury assets are maintained within the NFTX Multisig with a 3 or 5 sign requirement.

NFTX Treasury

The Treasury holdings can be found on Zapper.fi

NFTX Combined Treasury assets on Zapper.