In February this year, there was a wave of "graphic-to-coin conversion" craze in the encryption circle. This trend was triggered by the project Pandora_ERC404 developed on Ethereum by a former Coinbase engineer. The project realizes the conversion, destruction and minting between pictures and tokens. This innovative concept immediately triggered crazy hype in the market after its launch.
However, the hype quickly subsided, market focus quickly shifted to other narratives in March, and the concept of token conversion gradually fell silent.
Extended reading: In-depth analysis of ERC404 "The true meaning of token conversion, will "semi-fungible tokens" become mainstream?
DeGods promotes NFT currency conversion
However, recently, this wave of graphic currency conversion seems to have spread to mainstream NFTs. Solana's well-known NFT project DeGods recently announced that it will convert its NFT DeGods, y00ts and token $DUST into token $degod, and launch a public sale of tokens this morning (16th).
According to the official website, the NFT to token conversion ratio is as follows:
- NFT DeGods can be redeemed to get 550,000 $degod
- NFT y00ts can be destroyed to obtain 120,000 $degod
- Token $DUST can be destroyed to obtain 36 $degod
It should be noted that DeGods-related assets on other chains need to be bridged back to Solana to support token conversion (DeGods on the BTC chain need to be invoiced and burned in the official discord). In addition, when exchanging DeGods (swap), you need to pay a fee of 3.33%, and unlike other assets that will be destroyed (burn), they will enter the Sniper market for other users to trade.
In addition, according to official documents , in the Sniper market, the price of DeGods flooring will be dynamically adjusted according to the price of $degod
$degod Token Economics
In addition, according to official documents, the total supply of $degod tokens is 10 billion, and the tokens are distributed as follows:
- NFT, token holders (85%): Available for conversion by NFT (DeGods, y00st) and token ($DUST) holders, with a total of 41,241 holders.
- DeGods Foundation (10%): allocated to the DeGods Foundation for all market making, exchange and growth opportunities
- Sale (5%): 3% is allocated to Bonding curve sale (anyone can participate); 1% is allocated to Raydium liquidity pool; 1% is allocated to partners (sinper)
$degod breaks through $300 million at opening
This morning, after $degod opened on Raydium (first conducting bonding curve fundraising on its official website), the price once rose to $0.03267, and the market value once exceeded $300 million.
After this sudden surge, the price quickly plummeted back to around US$0.008, and then its price fluctuated within a narrow range between 0.006 and 0.01. It is now quoted at US$0.007804, up 9.97% in the past 24 hours.
Yuga Labs co-founder: Will not let BAYC follow suit
With the NFT market in such a slump, DeGods adopted the method of converting graphics to currency to give NFT a new look, which aroused widespread discussion in the community. Many users believed that it was a good thing that DeGods had the courage to try.
In response, Wylie Arnow, co-founder of Yuga Labs, the parent company of blue-chip NFT project BAYC, tweeted that although what DeGods is doing is indeed interesting, BAYC will not follow suit:
I don't know if this move from DeGods will be successful long-term (almost nothing is long-term), and I wouldn't do it with BAYC, but it's certainly interesting to watch this project try something bold, and it clearly has its merits. Good luck guys.
