SAFT wNFT — The New tool for Startups and VCs
DAO ENVELOP, cross-chain protocol that allows NFTs to store crypto assets and other NFTs inside. A standard NFT can be turned into a wrapped NFT, extra parameters like time-locks and royalties can also be added to upgrade the Original NFTs functionality. The ENVELOP team has been integrating and partnering with different projects that see value in this way of handling wrapped NFTs. One of the main ways this protocol can be used is to make a tool that both VCs and startups can use to make a win-win situation.
For the first time ever, an Animoca Brands wNFT contribution arrangement was tested in October 2021. Due to the success of this transaction, the Envelop team decided that it would be a good idea to make this service available to other start-ups, venture capitalists, and market speculators.
Yat Siu, the executive chairman and co-founder of Animoca Brands, said:
“We see great potential in the ENVELOP protocol and in the use of wrapped NTFs in the gaming industry, and we believe that these technologies will contribute to the emergence of new mechanics and use cases that will improve adoption of GameFi.”
The ENVELOP team carried out a customer development survey among VCs which showed the demand for the release of liquidity from two-thirds of the surveyed funds in the amount of 10 and 20% of all investments.
SAFT wNFT is a win/win option for both venture capitalists and businesses. The most significant advantages are token dump protection, obtaining liquidity for the secondary market, and automating the VC-startup connection via smart contracts.
The first step is to subscribe to ENVELOP’s SAFT wNFT service.
A startup must have a value of USD 1000 in $NIFTSY (ENVELOP utility token) in their wallet to proceed with a time and transfer lock, that will be set for 1 year. This will be like a subscription to the protocol for the creation of their SAFT wNFTs. After the time-lock is completed, the SAFT wNFT user will be able to unwrap the wNFT and withdraw NIFTSY tokens, which can be sold, stored, donated and used in other products within the ENVELOP microDAO ecosystem to gain additional value.
Then the project will Wrap their tokens here: https://app.ENVELOP.is/#/SAFT
Timelocks should be configured to correspond to vesting durations agreed upon in contracts with VC.
The value of collateral wrapped inside NFTs must comply with VC agreements.
These wNFTS may contain a full allocation within a single vesting period, or the VC may request that allocations be split across many vesting periods and into multiple wNFTS.
This is one possible scenario: The project features 5 vesting phases spread across 3, 6, 9, 12, and 15 months, with identical criteria of a 20% unlock for each step. The VC receives a USDT 100,000 allocation and requests that the project “pack” its tokens into wNFT in the equivalent of USDT 2,000. The project representative then creates 50 versions of the wNFT with the corresponding timelocks, with 10 wNFTs unlocked at each of the 5 vesting periods, for a total of 50 wNFT with USDT 2,000 tokens in each.
The project representative then either enters the VC recipient address when wrapping to save gas, which is more important if using the tool on the Ethereum network, or sends everything first to their wallet and then sends wNFT to the VC wallet piece by piece from the application: https://app.ENVELOP.is.
The VC receives 50 wNFT with a USDT 100,000 allocation, which it can immediately place on the secondary market at a higher cost — any NFT marketplace, such as OpenSea or a specialized wNFT Marketplace SCOTCH. This marketplace is the ONLY area where you can see the genuine and full scope of the wNFTs properties. Inside, collateral, time-locks, royalties, and so on. If the wNFT is posted on other marketplaces, this information will be hidden, but ENVELOP’s goal is for all marketplaces to eventually connect with the ENVELOP protocol and be able to read and display the true worth of the wNFTs listed. Until then, SCOTCH.SALE is the best answer and will lead the way in wNFTs for the secondary market.
When compared to existing investment approaches, such as mechanical sending or “locker” smart contracts, wNFT provides more freedom to the VC fund and lowers operating costs. For example, a SAFT-contract “locker” development can cost between USD 4,000 and USD 7,000, whereas SAFT wNFT is free upon staking $NIFTSY tokens.
Other advantages are that the project can profit from any activity with its tokens before the wNFT is unwrapped using the on-chain royalties mechanisms such as staking or farming.
The wNFT project owner’s representative fund crowd contributor can place wNFT on any NFT marketplace without any technical limits, including the specific SCOTCH wNFT Marketplace and provide a link to VS or community members to buy NFTs.
As a result, online transactions can be completed before the IDO without the project fearing a token dump.
The project can also benefit greatly from retail contributors with minimum allocations in wNFTs and vesting periods allowing retail contributors the ability to contribute in a project at an early stage before IDO on VC terms for the first time.
Access to a new pool of contributors is extremely beneficial to projects.
There are many advantages to using this protocol, including the ease with which wNFTs may be managed and the settings that can be configured.
Follow the link and ENVELOP will give you a free trial access so you can try to create your own SAFT wNFT: app.ENVELOP.is/#/SAFT
ENVELOP is a flexible cross-chain toolset that gives any NFT new functionality (economic set-up, on-chain royalties, rental mechanism, time/value/event-locks), scoring and anti-fraud system. ENVELOP features are easily implemented in GameFi, Marketplaces, Art, Metaverses, and non-pledge NFT-rentals. For more information visit https://envelop.is
Any questions? Contact ENVELOP today.
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