Governance NFTs
Last updated
Last updated
The Tonpound protocol is managed by its DAO through governance NFTs (gNFT). They are ERC-721 non-fungible tokens that grant users voting power and other benefits in using the Tonpound protocol.
The process of upgrading or "crafting" gNFTs as opposed to instantly buying them is implemented to ensure a gradual and decentralized transfer of voting power from the developer team to the active community members.
Each gNFT has a 12 segment structure and can be one of 3 types (topaz, emerald, diamond). First 6 segments build the core of the gNFT, while the rest 6 represent its facets. When opening a facet, users can randomly receive certain prizes such as an airdrop of TPI. Cores, on contrary, do not hold any bonuses but must be opened first before reaching the facets.
Each new wallet address can only begin with minting an "empty" gNFT with no open segments. The minting and upgrading to the 12th segment requires at least $100 worth of liquidity on Tonpound, which is, however, not subject to any locks. The initial mint is otherwise free except for paying the usual Ethereum gas fees.
To open one segment, users have to burn a certain amount of TPI, which is dynamically calculated to provide a balance between supply and demand of TPI and gNFTs. Generally, the more TPI there is in circulation, the higher cost of upgrading a gNFT will be (and vice versa). The exact formula will be provided closer to the protocol launch and is subject to change.
To mint an empty emerald, users must hold at least 10 complete topazes on their wallet. To mint an empty diamond, 10 complete topazes and 1 complete emerald are required. The topaz gNFTs that have been used for minting an empty emerald become marked and cannot be used for minting yet another emerald (or a diamond) again. The same applies for emeralds that were used to mint an empty diamond.
With all 12 facets opened, a gNFT becomes fully functional. Some benefits from holding an upgraded gNFT include share of profits from the protocol income and access to Tonpound DAO. Holding a gNFT of a higher class is always beneficial and grants more bonuses to the DAO member (see Tonpound DAO).
The mint of gNFTs will be available starting from the day of the protocol launch. When fully upgraded, the gNFT instantly starts to bring its holders benefits, however, some bonuses like claiming protocol rewards will be available only 1 year after the product launch.
