What Is Nibbl.xyz And How The NFT Buyout Game Works?

As we all know that the NFTs world is mooning day by day and the blockchain and NFT technology are evolving further.If you know blue chip NFTs have high pricing as compared to less known NFT projects. The higher price makes these blue chip NFTs less accessible to the general audience. To address this issue Nibbl.xyz came into existence. If you don’t know what is Nibbl.xyz. Let me tell you.

Nibbl.xyz is not a simple marketplace like others it’s a fractional platform that makes access to NFTs democratized. Nibbl.xyz is used to buy, sell, or trade the shares of an NFT if you can not afford to own a complete NFT.

Their token distribution system uses continuous tokens in order to guarantee liquidity on tokens. NFTs are not so complicated but NFTs fractionalization is complicated who doesn’t know much about it? Nibbl.xyz makes NFTs fractionalization easy for everyone.

What is Nibbl.xyz?

Nibbl.xyz is used to buy, sell, or trade the shares of an NFT if you can not afford to own a complete NFT. This platform makes it easy to own fractionalized parts of a most wanted and high-priced NFT. 

What is Nibbl.xyz?

Nibbl.xyz allows newbies to invest smaller amounts into NFTs who are not willing to risk their big amounts. The platform is in the beta phase now and offering free tokens to creators and collectors. The audience can place a buyout on NFTs and the community has the power to reject a buyout using the buyout rejection game. A sole owner of an NFT can redeem their NFTs at the buyout valuation. This platform has a different feature that allows you to chat with other users and this feature makes you a community member instead of just a holder.

There are different features and processes of rationalization in Nibbl.xyz. I will discuss below.

How to buy fractionalized NFTs on Nibbl.xyz?

You can easily buy fractionalized NFTs on Nibbl. Connect your web3.0 wallet to nibbl first, if you haven’t already. Then select the fractionalized NFT you want to purchase and the Eth amount you wish to pay for the portion. Your fractionalized NFT will be credited to your account according to the amount you paid.

How to fractionalize your NFTs on Nibbl.xyz? Step-by-step guide:

You can fractionalize your NFT collection on Nibbl.xyz, if you are the owner of the collection. The process of fractionalization is very easy. Open Nibbl.xyz to fractionalize your NFT.

Connect your wallet with Nibbl.xyz

You will require to connect your decentralized web3.0 wallet to nibble.xyz. So first connect your wallet with the platform. For example, you can use MetaMask, Coinbase wallets, etc

Fractionalize:

NFTs can be fractionated individually or in groups. In order to begin the fractionalization process, simply click on the Fractionalize button. If you want to fractionalize one of the NFTs in your collection, choose it from your collection.

Fractionalization details must be filled out:

Make sure you fill out all the required information so that your NFT can be fractionalized. For example, the name of the project, its symbol, the initial token supply and price, the initial liquidity, the description, as well as the minimum buyout date.

Get your NFT fractionalized:

As a result of fractionalizing an NFT, you will receive a certain number of fractionalized tokens defined by you, at the end of the process. The tokens must be backed by the corresponding funds in order to be counted as part of Nibbl’s accounts.

Users can add 20% of valuation to the sum of required funds, but sometimes if the NFT you are fractionalizing has a high value this amount can go up slightly. By doing this, you will be able to add funds in a more defined range instead of adding extra funds.

How to sell fractionalized NFTs on Nibbl.xyz?

Once you fractionize your NFT now you can sell the portion of your fractionalized NFT on Nibbl. You will receive the price of that portion as a royalty fee.

How does the Buyout game work on Nibble.xyz?

If someone or you want to buy the complete tokens of a locked fractionalized NFT. Nibbl offers a game to you to buy this locked fractionalized NFT by playing the buyout game. This game allows you to unlock the fractionalized NFT and buy the all tokens of that NFT. Anyone can attempt to play and unlock the locked fractionalized NFT. The NFT is unlocked from the smart contract if the buyer wins the game. 

What is Nibbl.xyz

Three terms are used for the players of this buyout game. 

  • Whale: who wants to unlock and buy complete tokens.
  • Crabs: Users who support buyout and whale, to unlock the locked fractionalized NFT.
  • Fishes: Users who don’t want NFT to be unlocked.

Each player plays a different role in the buyout. Let me tell you the whole game, the roles of players, and its stages

To unlock a fractionalized NFT as a whale you have to deposit the current price of NFT excluding the liquidity of fractionalized tokens. For example, if the token price is 1ETH and the supply of tokens is 10, and the liquidity is 2ETH So you will deposit the 1ETH*10 – 2 = 8 ETH. The formula of the deposit is 

Price of token*supply - liquidity = deposit amount.  

Now fishes come together to buy more tokens and increase the price of locked fractionalized NFT.

If fishes buy and successfully increase the buying pressure and price, Crabs sell their tokens to decrease the valuation by increasing the supply. And if fish don’t increase buy pressure crabs don’t have to do anything. 

If fishes successfully increase the valuation of fractionalized NFT by 15% within the buyout time limit. The buyout is canceled and if fishes fail to achieve that valuation increase the buyout successfully rolls out and the whale wins.

Now the locked fractional NFT is unlocked. Do not forget to check the verified checkmark before buying the NFT. Because of Nibbl.xyz verify NFTs to avoid duplicate NFTs being sold. 

How much fee does Nibbl.xyz charge to users?

Every platform has a gas fee so Nibbl also has the gas fee that is charged on transactions. This fee has nothing to do with the platform. The gas fee directly goes to the miners who facilitate the transactions. But Nibbl.xyz has three types of feeses for the three roles.

  • Fee for curators of NFTs.
  • Fees for curves (used to fill liquidity gaps).  
  • Fees related to administrative tasks (to the team).

Security of NFTs on Nibbl.xyz?

Nibbl has high-security features for NFT, such as using smart contracts to lock your NFT. A fractionalized NFT is divided into a small number of tokens (ERC-20) that are bound to the main NFT. To find loopholes in the system and smart contracts, Nibbl is welcoming bug bounties and introducing a platform to get rid of vulnerabilities.

Nibbl is very secure, but if there is a bug in the fractionalization process, it can be devastating for users. Users could lose the entire NFT.

Benefits of Nibbl.xyz:

Here are a few benefits for collectors and creators.

  • Liquidity increases for NFTs 
  • Collectors can fractionalize bundles of NFTs 
  • Collectors can create their own NFT community
  • Nibbl is in beta and rewarding early creators with tokens
  •  Creators can market social tokens with NFT sales 
  • Develop better creator Decentralized Autonomous Organizations (DAOs)

Closing:

So Nibbl.xyz is the platform to trade fractionalized NFTs that provides great opportunities to new buyers who want to invest small. The special feature of Nibbl is the buyout game that makes this platform more special. I have also discussed the security features and benefits as well. It is not only the fractional NFT marketplace, it’s a community as well. If you have any further queries you can ask me in the comment section. 

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