Resurgence of NEAR’s NFTs: A Look at Successful Models & Grassroots Funding
In this report, we discuss the findings from our research on NFT developments across various blockchain ecosystems and the effectiveness of grassroots funding entities in supporting innovative projects. The primary objectives of this research were to:
- NFT Developments on Other Chains: Identify successful NFT projects and innovations on other blockchain networks, analyze their strategies, and assess market reception to determine potential adaptations within the NEAR ecosystem.
- Grassroots Funding Entities: Examine successful grassroots funding entities, focusing on publicly available data points such as funding received, allocation strategies, and key outcomes achieved by the supported projects.
- Comparative Analysis: Draw comparisons between the NEAR ecosystem and other blockchain networks, supporting the hypothesis that with adequate funding, attention, and a supportive ecosystem, digital collectibles can thrive within the NEAR ecosystem.
The following sections summarize our key findings, goals, and recommendations based on this research.
Key Findings
- NFT Developments on Other Chains:
- Successful Projects and Strategies: Leading NFT projects on Ethereum (e.g., CryptoPunks, BAYC), Solana (e.g., DeGods), BNB Chain (e.g., MetaWars), Flow (e.g., NBA Top Shot), and Polygon have employed strategies like strong developer support, community engagement, and innovative utilities such as staking and exclusive content.
- Technological Innovations: Each blockchain offers unique technological features—Ethereum with its ERC-721 and ERC-1155 standards, Solana with high transaction speeds and low fees, BNB Chain’s integration within the Binance ecosystem, Flow’s user-friendly experiences for collectibles, and Polygon’s interoperability with Ethereum.
- Market Reception: Metrics such as trading volumes, average prices, user base growth, and engagement levels indicate the success of these projects. For instance, Ethereum’s BAYC has an all-time volume of $4.17 billion, showcasing the high market demand for NFTs.
- Grassroots Funding Entities:
- Proven Track Records: Entities like the Ethereum Foundation’s ESP, Solana Foundation, Polygon Village Grants, and others have successfully supported various projects. They utilize transparent processes, strategic funding allocations, and community involvement to ensure the growth and sustainability of funded projects.
- Allocation Strategies and Outcomes: Effective funding strategies include milestone-based grants, community voting, and thematic funding rounds. These methods have significantly contributed to ecosystem growth and the development of groundbreaking projects.
- Comparative Analysis with NEAR:
- Strengths of NEAR: NEAR’s advantages include fast transaction speeds, low fees, and a user-friendly ecosystem. Platforms like Mintbase and Paras offer robust tools for creators and emphasize community engagement, which is crucial for long-term sustainability.
- Areas for Improvement: NEAR can benefit from adopting advanced NFT features like fractional ownership, integrating DeFi protocols, providing more detailed tracking of funded project outcomes, and highlighting successful case studies to build trust and attract further investments.
Goals
- Adapt Successful Strategies: Implement proven strategies from other blockchains to foster a thriving NFT ecosystem on NEAR.
- Enhance Funding Mechanisms: Improve NEAR’s grassroots funding mechanisms to support innovative projects effectively and transparently.
- Strengthen Community Engagement: Build a strong, engaged community to support the long-term sustainability of NFT projects on NEAR.
- Focus on Long-Term Sustainability: Develop economic models and protocols that provide long-term utility and address environmental concerns.
Recommendations
- Adopt Proven Strategies from Other Blockchains:
- User Experience and Utility Features: Prioritize enhancing the user experience through intuitive interfaces and offering utilities like staking voting rights, and exclusive content.
- Advanced NFT Features: Explore advanced features such as fractional ownership, lending, borrowing, and integrating NFTs with DeFi protocols.
- Active Marketing and Community Building: Engage in active marketing campaigns and community-building activities to attract and retain users.
- Enhance Funding and Support Mechanisms:
- Transparency and Accountability: Ensure transparent and accountable funding processes with clear guidelines, public reporting, and community participation.
- ROI for Funders: Provide detailed case studies and metrics to showcase the return on investment for funders, incentivizing further participation.
- Thematic Funding Rounds: Conduct thematic funding rounds focused on specific areas like DeFi, gaming, and collectibles to attract targeted projects aligned with ecosystem priorities.
- Strengthen Developer and Community Engagement:
- Developer Tools and Resources: Provide comprehensive developer tools, resources, and support through hackathons, workshops, and mentorship programs.
- Collaboration and Knowledge-Sharing: Foster a collaborative environment through forums, community events, and knowledge-sharing initiatives.
- Highlight Success Stories and Partnerships: Showcase successful projects and key partnerships through dedicated sections on funding program websites and social media.
- Focus on Long-Term Sustainability:
- Energy-Efficient Protocols and Green Initiatives: Promote energy-efficient protocols and partner with organizations that support green initiatives.
- Economic Models for Long-Term Utility: Develop and promote economic models that provide ongoing utility and value for NFT holders, such as in-game assets, real-world applications, and exclusive access to services.
- Niche Market Focus: Leverage NEAR’s strengths in transaction speed and low fees to attract niche markets like gaming and sports collectibles.
By implementing these recommendations, NEAR can create a supportive and innovative ecosystem that enables digital collectibles to thrive, validating the hypothesis that with adequate funding and a supportive environment, NFTs can achieve significant success within the NEAR ecosystem.
Research Team
Earnest: Team lead
BGem : NRC alumni
Nedlar: NRC alumni
Lautaro: NCR Cohort 2 student