NFT Synthetics

We are Mutliversal Ventures, a group of core-devs led by @Kartik Thakore and @Akshay Sharma building the future of portable intelligence.

We want to kick off our first post with our first macro idea:

"NFT is the gateway drug for the first billion users on crypto"

Today, there are more than 250m users worldwide “using” crypto. “Using” is a generous word because most of them are holding currency and not transacting.

Here is an example of total Ethereum wallets compared to number of wallets that send and receive. The total wallets curve is in log-scale.

Live Glassnode link for the chart.

First gradually, then suddenly

Crypto is growing incredibly fast and poised to get to 1B users within the decade.

More than a year ago, Raoul Pal published this tweet:

Raoul Pal @RaoulGMI

The crypto space is growing at 113% per year in terms of users. Even if it slows down to the 63% growth rate of network adoption the internet saw at the same stage, its going to lead to 4bn users by 2030 or earlier.

So how do we go from ~300m users to 1B users?

Our hypothesis is that we will need to find a few step functions to get there. NFT is the front runner to get there.

At scale, most users will not care about the network, decentralization, managing wallets, or other ideologies we as core-devs care about. We care about these and its our job to to build good abstractions.

What users care about are experiences.

Ownership is an experience.

Exclusivity is an experience.

Uniqueness is an experience.

Affiliation is an experience.

Engaging with the NFT is an experience.

Today, most NFTs are not engaging. They are at a point of "stasis". You HODL your NFT like an underlying equity asset, but there is nothing accelerating its use. It is not kicking off Metcalfe's law - meaning the value of the NFT is not going up as new users onboard.

Multiversal’s take

We are solving this specific problem at Multiversal:

How to bring engagement to NFTs?

We are setting up a framework to talk about this and we call it "NFT Synthetics".

Synthetics are financial instruments engineered to simulate other instruments / assets. What NFT needs is a stimulating force to bring it out of its homeostasis.

Ref

We will be writing more about NFT Synthetics over the coming months. We will follow up with another post to show you a class of synthetic NFT for increasing #engagement.

If you like what you see so far, follow us or share. We are just getting started but we move fast.

To talk to us, join our discord https://discord.gg/QnQBDFFMNH