KIRA Network launches NFT pledge service to release NFT asset liquidity

Original title: "KIRA & NFTs Staking"

Original source: KIRA Network  

Original translation: 0x33, Rhythm BlockBeats

On February 26, KIRA Network published an article exploring the concept of NFT, payout pools, token baskets, and explaining how to use NFT to generate passive income for its holders. In this article, you will also learn how NFTs interact with the KIRA network to improve its security, and discover new mechanisms that provide market access and price discovery for non-fungible assets.

·  NFT (Non Fungible Tokens) It is a unique digital representation of tangible or intangible assets;

·  Stake NFT through MBPoS (Multi Bonded Proof of Stake) consensus to ensure the security of KIRA Network ;

·  KIRA Governance will define interest rates for staked NFTs ;

·  All NFT assets on KIRA can be divided and regarded as fungible assets;

·  Resettable NFTs on KIRA can be split and used for lending, trading, or other operations;

·  KIRA will "basket" tokens with lower value to create "NFT baskets" efficiently;

·  Upcoming activities: Use NFT to mine KEX, or get KIRA NFT rewards by staking KEX.

What are NFTs?

Let’s explain what NFT is from the beginning. NFT is an acronym for Non-Fungible Token (non-fungible token), which represents a unique tangible and intangible asset that represents uniqueness. These assets may represent a piece of art, such as a physical painting or unique digital art, or a game item such as a skin, weapon, or character. Like their original tangible and intangible assets, NFTs are unique, meaning they are non-fungible.

Currently, most NFTs are on Ethereum using ERC- 721 or ERC-1155 standards, however, new EVM-compatible networks such as Binance Smart Chain are already adopting similar ERC standards to support NFTs.

Current NFT field

In the past few years, we have seen a huge growth in NFT applications. Their ability to represent many different asset types, scarcity, collectability, and the growth of the digital real estate market all continue to establish NFTs as one of the dominant asset classes.

At the same time, NFT still faces challenges in terms of liquidity. Most are purchased through a HODL strategy (similar to the real art world, where buyers keep works for a few years), limiting transactions and liquidity. Some were even burned/destroyed to increase the scarcity of the work. KIRA's solution to the liquidity challenge is to lock up NFT assets to generate passive income, while continuing to retain full custody of the NFT and be able to realize the value represented by the locked assets.

Use NTF to secure blockchain

There is a natural synergy between non-fungible tokens and the KIRA network, as these assets add value to the security of the KIRA network, but since the risk flow of these assets is not restricted, KIRA network activity follows Network fees increase accordingly in return. KIRA’s Multi-Bonded Proof of Stake (MBPoS) consensus enables the staking of NFTs by automatically issuing 1:1 staked derivatives that represent all staked tokens regardless of their fungible or non-fungible assets type.

How does NFT staking work?

In order to facilitate NFT staking, users transfer their NFT to KIRA network, and submit a request transaction that enables KIRA network governance to assign the corresponding interest/yield to the asset. If whitelisted by management (determining that the asset brings value to the network), the NFT can be staked, and its delegator can claim block and fee returns, just as the delegator can do for any fungible asset.

KIRA Network governance defines APY (annualized percentage yield), which is used to pledge a single NFT and its tokenization basket. The reward rate depends on such factors as collateral price/total value locked (TVL) how such NFTs contribute, and how much network activity will increase due to their circulation and use within the network. This mechanism not only guarantees the security of the KIRA network, but also guides the flow of assets into the network to optimize the revenue generated by the network and all dapps deployed in the network.

NFT Pledge Derivatives

For each delegated NFT token, a 1:1 staked derivative (sNFT) will be issued to token holders. sNFTs are transferable and can be traded directly on the KIRA network via OTC swaps, dedicated order books, automated market maker pools or auctions.

All NFTs and their derivatives on the KIRA network can be refinanced, which means they can be split into several A small portion, and treated as a fungible asset, which is not possible in today's traditional NFT. Fungible staking derivatives can further earn a fraction of block and fee rewards based on governance-mandated interest rates.

"Slicable" NFT

KIRA Network’s re-fungible NFT enables its owner to split (create Divided shares) other indivisible NFT products, so that they can be used by others for lending or trading. In this case, the original owner will have the ability to buy back the asset at net asset value (NAV). This ability allows seamless price discovery of high value assets,

This functionality enables seamless discovery of prices for high-value assets, such as real estate, where one NFT asset may represent a collection of many other fungible assets. For example, an NFT representing a physical building might be a collection of NFTs representing individual units/apartments within that building. The owner of the tokenized asset will hold full ownership (according to local laws and regulations) as long as he/she is an accredited investor. He/she will also be required to post a security deposit to guarantee the legitimacy of the asset and its value.

Expense Pool

Holding NFT assets, users who apply for income from traditional assets (such as real estate leases, ticket sales, art galleries, or other sources) can incentivize other users to acquire and trade NFT assets or sNFT shares by creating a spending pool, automatically Or manually (depending on the mode of operation) distribute deposit profits to shareholders.

Token Basket

KIRA Network will further enable "baskets" of lower value tokens, effectively enabling the creation of NFT baskets that can be exchanged in a similar way to Trade by replacing tokens. Token Baskets and NFT "re-framing" enable KIRA to provide a feature-rich and liquid marketplace for traditional NFTs.

Token Baskets can be created by one or more users, or by the governance body of the network. Owners of these “baskets” will have the ability to whitelist any tokens, fungible or non-fungible, thus making deposits into their “baskets”. Token holders who deposit whitelisted assets into the “Token Basket” will receive fungible bTokens representing their stored assets, which can be traded and even staked.

When the user returns the btoken to the "token basket" issued by it, the redemption of the original asset is possible of. Users who redeem NFTs from the basket receive a random asset from the pool in proportion to the number of btokens returned. This ensures the fairness and integrity of bToken market prices.

So what does this all mean for such a dynamic and growing digital asset space What? With KIRA Network, NFTs will gain new utility as investable assets while maintaining the level of liquidity previously reserved only for traditional/alternative crypto assets.

NFT buyers will have the ability to monetize their assets and Use its tokens without compromising security or having to rely on a central custodian to provide market access. A liquid marketplace will increase demand for NFTs and incentivize creators and artists to create new collectibles, increasing their earning potential. Companies and projects that create digital assets can partner with KIRA to become pioneers into the infinite economy of the interchain ecosystem.

Upcoming NFT Staking on KIRA

KIRA's first NFT works will be released by several well-known artists in the encryption field, and there will be several common, uncommon and rare NFT works. KIRA Network will release the ERC20 encryption platform through https://kira.network as a precursor to the mainnet release.

On KIRA’s staking platform, users will be able to stake using NFT Mining gets KEX, and KEX holders can also stake KEX tokens and get KIRA NFT as a reward. Half of KIRA NFT will be donated to the community through a series of NFTs, while the remaining half can only be obtained by investing in KEX.

The first phase of KIRA NFT distribution will only include KIRA Network produced NFTs, but at a later stage, NFTs made by other partner projects will also be included. This is the start of the NFT staking showcase, educating the community on how NFTs and other assets can be used to secure the KIRA network while generating passive income for its users.

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia