KuCoin AMA With AFKDAO (AFK) — Connecting Gaming Projects, Guilds, and Players within a Powered Ecosystem
Dear KuCoin Users,
Time: May 23, 2022, 11:00 AM - 11:49 AM (UTC)
AFKDAO is a DeFi infrastructure for utility NFTs featuring the decentralized NFT asset management protocol and non-collateral lending pool solution for game NFT assets powered by the delegation functionality of its proprietary ERC-4610 protocol.
Official Website: https://afkdao.io/
Wayne — Member of the Business Development and Partnership of AFKDAO
Q&A from KuCoin
Q: Could you please provide a quick self-introduction for the community? Also, what is your role in AFKDAO?
Wayne: My name is Wayne, one of the OGs of AFKDAO and a DAO contributor in business development. I joined the crypto space back in 2015. I started by experimenting with trading and crypto mining, then I soon got fascinated by the idea and dedicated myself to its career. Like many people back then, I got rekt in 2018.
However, I was lucky enough to be the very first person who got the chance to experiment with NFT in CryptoKitties and many early-day NFTs which are no longer active nowadays. Besides, I served as a BDM in a few crypto exchanges in Australasia. I’m also a gamer (WOW/World of Tanks), a Buddhist, and a dog’s dad.
Q: Can you briefly introduce the AFKDAO project and some of its real-life utilities?
Wayne: AFKDAO is a DeFi infrastructure for utility NFTs. In simple language, it’s an NFT bank for NFT owners. You can stake, lend, and earn with your game NFTs. How does it work? We are now focusing on solving the utilization and liquidity issue of GameFi assets, one of the biggest utility NFT assets.
I want to share a few of our insights on the problems in blockchain games right now. One of the biggest headaches for game project teams is the hyper speculation issue. A new game NFT can get flipped by 20x or 30x overnight. While the profits don’t go to the game’s treasury, it also stops new players from joining the game.
Another issue, idle NFTs are likely to be dumped into the marketplace. On the other side, guilds are surely one of the most significant participants in GameFi as the recruiter and educators. However, many of them now own a big bag of NFT assets. They can go up to 30%-40% of the total supply of a certain game. When the market is in a downtrend, their treasury risk will become realized as losses, destroying the in-game economy as a by-product.
These are the reasons why a rental solution for NFTs is needed. Users can rent out idle NFTs for P2E cash flow. When the market knows about the cash flow generating capability, it can potentially figure out the fair pricing of the NFT.
We offer a protocol-driven DeFi infrastructure that provides an NFT launchpad, NFT asset management, and NFT non-collateral lending protocol. Underneath the application, an ERC-4610 SDK is implemented to both new native ERC-4610 NFTs and existing ERC-721 NFTs that can enable the NFTs to separate the ownership from access to utility. That is to say, NFT owners can use AFKDAO to generate passive income just like using a bank.
Q: Why did your team come up with this idea? What is the background of the AFKDAO team?
Wayne: Since many well-known GameFi projects have combined NFT and DeFi and brought the new economic model of P2E into the mainstream market, the practical NFTs ubiquitous in GameFi projects have gradually become an important asset class in the crypto world. For example, you may have Axies, and you may have the Sandbox's Land. However, the value, liquidity, and supporting services of these practical NFTs are somehow unclear, so most NFTs are idle.
We see the need of the investors. For the P2E project teams, managing the circulation of NFTs in the entire project lifecycle is very important. They also need a complete set of solutions. That is why we launched a set of DeFi infrastructure solutions for practical NFTs, incorporating the new ERC standard - AFKDAO's ERC-4610.
AFKDAO came into being thanks to the hard work of our three founders, and I'm happy to introduce them:
1. Ben Gothard - Serial entrepreneur, author, influencer, and game enthusiast. Founder of Crypto Gaming Institute.
2. Nick Qi - Experienced tech lead. Blockchain, AI, Fintech expert, Python, R, Tensorflow, Spark, Nodejs, Web3, Solidity Development, and Cloud Service. Ex-Menulog, Cognizant, Deloitte, and Optus.
3. Colin Hebert - Tech founder. Expert UX and Frontend Developer with a strong affinity for recruiting and developer relations. Technologies include React ecosystem, NodeJs, Solidity, and TypeScript.
Many of our core members have been in the NFT space since 2018, and this is not their first NFT protocol. At the AFKDAO team, we value innovation. Our mission is to use innovative solutions to address current and future market challenges.
Q: Do you have any major competitors?
Wayne: We do have a few:
1. NFTFi - a marketplace for NFT mortgages.
2. reNFT - a leasing platform in which NFT asset holders can lease out their assets and receive rental revenue over the lease period of the assets.
3. IQ Protocol - a DeFi tool that provides the framework that enables controlled rentals of assets in time-limited wrapping.
It's not bad to have competitors, as this is a good sign that the competition verifies the vertical we are in, and it means what we are solving is worthwhile.
Here is a summary of our competitive edges over these existing competitors:
We can have an in-depth look at various aspects:
1. Service Scope - AFKDAO has broader use cases supporting asset management and lending protocol.
2. Independence - AFKDAO's solution revolves around ERC-4610, an open-sourced ERC-721 extension. Compatible NFTs will have native rentability without relying on a certain platform. This aspect would reduce the worry of projects being shut down by platforms and later disrupting the business process.
3. Time specification - AFKDAO provides options for both rental methods with and without upfront time specification requirements. Such a design can enable long-term rental liquidity.
4. Pooled lending - AFKDAO allows lending pools rather than P2P lending. So much higher efficiency is available.
5. No collateral - no collateral is needed for renting in AFKDAO.
6. Sub delegation - available in AFK Aggregator, which makes the service guild-friendly.
We are more down-to-earth and solve problems for the utility NFT and GameFi space with available products.
Q: Can you share some info about the total supply of AFK and tokenomics distribution?
Wayne: The total supply of AFK is one (1) billion. The tokenomics is like such: 47% for the ecosystem, 1% for airdrop, 11.22% for investment, 17% for advisors and team, and 23.78% for the treasury. The initial market cap is fairly small as only the public sale and 10% of the airdrop will be vested upon TGE, making the initial market cap around $150,000.
Q: What are the current and future roadmap targets of AFKDAO?
Wayne: Our AFK Aggregator, our decentralized NFT asset management platform, is now open. Our Launchpad and the rental pool protocol are now in testnet and will be deployed within the next month. The official launch is subject to our fundraising and marketing progress.
We are now partnering with around 30 games, including Ethlas, Spark Era, PlaceWar, Dinoland, KBD, etc. There is a portfolio of Animoca Brands and Sequoia. Over 300 small guilds are with us in the Jedi Program, covering over 6,000 scholars.
We will also deploy a mentorship program for new game studios to join to maximize our adoption rate of ERC-4610. Later, you may see a detailed tokenomics about our ecosystem fund. We may employ the veToken model to provide lending incentives to NFT pools, which encourage projects to stick and launch with us with a high lock-up need for AFK.
Q: Where can we find out more about AFKDAO? Can you share with us all your social media links?
Wayne: You can find all our social presence here.
If you are a player of PlaceWar, you can use our AFK Aggregator to rent out or borrow Tank NFTs. KBD and Dinoland are also ready to go in no time.
Free-Ask from KuCoin Community
Q: Can you list 1-3 killer features of your project that makes it ahead of its competitors? What is your project's competitive advantage that you feel most confident in?
1. ERC-4610: An extension of ERC-4610, which enables both on-chain NFT asset management and non-collateral lending.
2. Non-collateral NFT rental pool: A non-collateral version of AAVE of NFT. Lenders and borrowers can stake NFTs or borrow NFTs at a dynamic rate in real-time based on the interest rate calculated by the algorithm based on supply and demand. Borrowers need no collateral but 'top up' in tokens (reward tokens if game NFTs). Once the top-up is depleted, the lease will be terminated.
3. AFK Aggregator: A trustless asset management based on ERC-4610.
Q: Currently, from where can I buy it? Is it possible that I can get it only by holding it?
Wayne: You can buy our tokens on KuCoin at 10:00 AM on May 24, 2022 (UTC). We also have liquidity deployed on PancakeSwap.
Q: The latest updates of the project are very necessary for users. Where can users get regular updates on the project? Can you provide any Telegram channel, YouTube, or Twitter channel to stay current with your project? Thank you.
Wayne: You can find all our links here.
Q: Can you explain how your tokenomics distribution is? How many tokens will be minted? And how many tokens is the team willing to lock?
Wayne: The total supply of AFK is one (1) billion. The tokenomics is like such: 47% for the ecosystem, 1% for airdrop, 11.22% for investment, 17% for advisors and team, and 23.78% for the treasury. The initial market cap is fairly small as only the public sale and 10% of the airdrop will be vested upon TGE, making the initial market cap only around $150,000.
A smart contract regulates the treasury and ecosystem tokens, and the vesting schedule is way longer than four (4) years.
Q: From the biggest headaches for gaming project teams, apart from the hyper speculation issue, what are the other project issues, and your solutions to them?
Wayne: Most game developers are not very smart-contract-savvy, so developing their rental system would be a headache. Also, NFTs would have an inflation issue in most cases. So the rental system is a better way to increase the utilization rate of NFTs, thus reducing their selling pressure.
Q: Most investors are away from understanding the real value of a project. Like, almost 80% of investors are focused on short-term token prices. Can you motivate us about the HOLDing benefits of your token in the long term?
Wayne: We have an ecosystem that allows you to profit in multiple ways. If you are a guild manager, you can raise NFTs and play-to-earn for free by sharing the profits. If you are a player yourself and want to maximize your profit, you can use a flexible borrowing strategy.
Q: Have you been audited? I wish to hear about the security of funds, which is what every investor seeks. How built is your security?
Wayne: We did go through the Certik audit. Our smart escrow contract for treasury and ecosystem tokens is also under auditing. After all, one of the best things about our protocol is that it doesn't involve any transfer of NFT assets, so you don't have a risk exposure in that regard.
KuCoin and AFKDAO have prepared a total of 2,000 USDT to give away to AMA participants.
1. Free-ask section: 75 USDT
2. AMA activity: 1,925 USDT
Quiz: 1,500 USDT
Price Guess: 300 USDT
Participation Rewards: 125 USDT
. . .
If you haven’t got a KuCoin account yet, you can sign up here!