This article dives into a project we have been following for a few weeks, it is out of the micro-cap stage and becoming less risky over time. This project aims to add some interesting dynamics to NFTs along with an ecosystem built on the technology.
NFT Exposure with RMRK
For a recap on Polkadot and why is important please check out our article [here]. Polkadot’s test network Kusama is equally important as it tests all the projects that will deploy on Polkadot. This makes DOT more upgradeable and testable than Ethereum since is was built from the ground up to be adapted over time and interoperable. RMRK is a project that can possibly be a way to get NFT technology exposure without buying NFTs. From the devs RMRK: (pronounced “remark”) is a set of NFT legos that give NFTs infinite extensibility, hosted on the Kusama blockchain, Polkadot’s canary network, without the need for parachains or smart contracts[1].
A unique feature of RMRK is that it is the first statemine token to be available on global centralized exchanges. Statemine tokens on Kusama do not need to win a parachain slot since they are considered a “common good” technology or chain that will benefit the network[2]. This is massively important because RMRK will be integrated into the lifeblood of Kusama over time. The lego technology will be integrated into the base layer, allowing for dapps and new chains to integrate simply and easily, adding to the useability for devs and users alike.
How does it Work
Combining Kusamas inherent multichain interface, with this new lego technology, these NFTs will be far more liquid and upgradeable than ever before. RMRK uses an example of a character NFT in a game wearing a backpack. The backpack itself is a separate NFT attached to the base NFT which a player owns. Within the backpack are in game potions useable within the game, the NFT character essentially owns the NFT backpack. This concept can also be applied for upgrades of a character, that may change its appearance, or changes in equip able items.
These NFTs will also be multi-resource. An example of this would be an NFT that is just an image will have multiple reflections of different file formats of this image, one compatible with jpeg, others possible compatible with crypto cloud storage. Another feature is known as conditional rendering, imagine your NFT gets 100 favorites on Opensea, and it gains an attribute where a crown is added to the characters head. Perhaps the most interesting lego effect of RMRK is the ability to tokenize an NFT into fungible tokens. For example, a Coinbusters NFT that is split up into tokens fractionalizing ownership among holders. The holders can then vote on Coinbusters proposals based on governance.
Why do we like RMRK?
For starters, as usual none of this is financial advice, but I do like to be transparent about what I buy and don’t buy. I am buying RMRK tonight (on Kucoin) after a few days of research for several reasons. Remember to always risk-adjust your bags, anything can happen. This is also a good project to watch list next year.
- I have been searching for a way to get NFT exposure without risking my funds on buying single NFTs. I believe this project fits the narrative, and the fact it is on Kusama is a bullish factor for me.
- The Singular NFT marketplace. This marketplace is Kusama native, cheap to use and fast. This is an area where artists and developers can get creative using the lego technology. Minting is easy,
- RMRK has a successful NFT collection called Kanaria(raised 6 million dollars for RMRK) where users were able to influence the look of their NFT birds before the egg NFTs hatched. The birds were a great feature of the lego ideals for NFTs.
- The RMRK token has use cases. A 10 million capped supply with no inflation is bullish. RMRK will be used for minting fees in the marketplace, DAO collateral (decentralized autonomous organization) for fractionalizing an NFT into tokens. RMRK is used for verification and curation of NFTs. RMRK will be used to stake when a new project is minted, after the project is proven to be legitimate the staked tokens are returned. Additionally, users can report others for plagiarism, if proven guilty the winning party will get a fraction of the opponents staked tokens, and a percentage will be burned from existence. RMRK will also be used as collateral on Kusama defi networks that are similar to aave, it will also be a governance token for the project as a whole.
Does the network above look familiar? Moonbeam and Moonriver were discussed months ago, these are powerful ecosystems. What truly separates RMRK from the pack is that it was a fairdrop token. 89% of the total supply was airdropped to the original Kanaria NFT owners. The team only has a 5% allocation with a 2-year lock, and the rest of the tokens have no lock period, so we do not expect any crazy venture capitalist dumps in the future. I personally like this project because it has a product, the technology they have presented to the space, and the usable marketplace are great steps forward for NFTs.
Opensea is about as centralized as they come, many NFT artists are only in it for the money and do not truly care about the community they have built around their art. Decentralized marketplaces are fairer, and more enjoyable for the end user, and because RMRK is on Kusama, no wild Ethereum gas fees to worry about.
On a final note, if you chose to jump into RMRK do remember its market cap is around 250 million, it is tiny. With that comes great risk, I myself am only starting with a small allocation of my total portfolio worth. I will then dollar-cost average depending on how much more bullish I become in the coming weeks/months. As always, stay safe out there, and do your OWN research. Thank you!
[2] https://www.globenewswire.com/news-release/2021/09/29/2305726/0/en/The-RMRK-token-is-the-first-Kusama-Statemine-token-to-be-tradable-on-CEXes.html
