Author: HOLO Institute

"Reform means to discard the old, while the cauldron means to acquire the new."

The world of NFTs is bidding farewell to the era of speculation and ushering in a new era of reform and innovation.

NFTs are no longer just about collection and trading; they are also proof of rights.

Jeff Bezos, the founder of Amazon, once said:

An ideal business generally has four attributes:
First, there is a strong customer demand.
Second, it can grow to a large scale.
Third, it has a high return on capital.
Fourth, it can withstand the test of time --- meaning it can last for many years.

Let’s explore the value of the new era of NFTs through these four attributes.

1. User Demand

Traditional PFPs are increasingly unable to meet market demands. Even strong projects like BAYC have launched a series of initiatives to enhance the rights associated with their NFTs. Many projects that were popular in 2022 have faded into obscurity, making it difficult to mention them again. "New over old" has become the mantra of the NFT community, yet the birth of so-called "new" projects is extremely slow. It is said that the market needs new traffic and fresh blood, but existing traffic and capital seem lost during this period. The market urgently needs new concepts to emerge, which may not necessarily be new projects but perhaps new niche segments.

2. Growth Scale

Rights-based NFTs are not a new concept, but they have not garnered much attention in the past NFT world dominated by PFPs. Element announced the arrival of the rights NFT era with the release of Element Pass Genesis (hereafter referred to as EPG) in March, which resonated with many quality projects and applications in the industry. Bitmain, a giant in the crypto industry and a leader in BTC mining, recently launched rights NFTs based on BTC computing power. The ability to become a leading enterprise is undoubtedly due to their keen business sense. As these quality projects and applications flood into rights NFTs like mushrooms after rain, it will stimulate significant growth in the entire market segment.

3. Capital Return

In the crypto industry, early participants and builders have never been let down. The era of rights NFTs has just begun for them. In the past half month, the EPG has seen a maximum increase of 400%, and its price has stabilized at 0.5e. The leading RWA asset, $THEO, has increased nearly 20 times in the past month. The value of rights-based assets is being discovered, and sailing in the blue ocean of rights NFTs, the discovery of new lands may not be far away.

4. Withstanding Time

Many once-popular PFP projects, despite having RoadMaps, have gradually become AirMaps as time passes and enthusiasm wanes. "Delivery" has become the biggest shackle hindering the survival and development of PFP projects. However, rights-based NFTs do not face such issues. High-quality underlying assets, mature product applications, and stable entrepreneurial teams will be the greatest support for rights NFTs to shine in the next cycle. There is no need to worry about how to advance the next step of the roadmap; what is more needed is the on-chain of rights, or in other words, the NFTization of rights. Therefore, time is not a thorn that binds the development of rights NFTs; rather than resisting time, I prefer to call it the sedimentation of time.

Bezos also offered his advice for businesses that meet these four attributes:

When you find such a business, you should hold on to it tightly.

Perhaps in this era of rights NFTs, you can find something worth holding on to at Element.

The NFT Rights Flywheel is Slowly Starting

On April 7, Element's official Twitter announced information regarding Element 3.0 and Element Pass Standard (hereafter referred to as EPS).

Element 3.0 is defined as the NFT rights market, aiming to establish an integrated NFT rights ecosystem for users, including "Launchpad, Trade, Pro Features, Airdrop," with "rights NFTs" as the core value driver, while Element Pass will become the cornerstone asset of the platform's rights.

EPS is a collection of standards for Element Pass, and this announcement also includes news about the issuance of EPS.

Compared to the EPG released in March, this is not a concept of first and second phases, but rather Genesis Pass and Standard Pass.

EPG is already a limited edition, a darling of the entire ecosystem, and a proof of identity for the ecosystem. EPG will gradually flow to ELEDAO's ecological partners and project parties. Currently, DeBox, BabySwap, and TP Wallet have announced their holdings, and the ELE ecosystem will grow stronger with each turnover of EPG.

EPS is a growth-type rights NFT, and users can obtain basic welfare packages by holding EPS, which includes governance, economic, and product privileges. Users can also increase their loyalty through continuous use of platform products and services, thereby obtaining more new airdrops and realizing Do2Earn. EPS will encourage more NFT users to participate in and understand rights NFTs, growing together with Element and sharing the fruits of platform development.

The release of EPG has already initiated the rights flywheel of NFTs, and the release of EPS will organically promote each other, just like interlocking gears driving one another.

This announcement also signifies that Element is embarking on a new path that is different from others and from the past. The opening of a new path is always filled with difficulties and obstacles. The first step in setting sail is often the hardest. Like a flywheel, it requires significant effort to move from a standstill to motion; each rotation is labor-intensive, but every effort will not be in vain. Once it starts moving, the rights flywheel will turn faster and faster.

Just as I was about to publish this article, Element released another tweet confirming that the total supply of $ELE is 2 billion, with the airdrop proportion for users participating in the OG program and Element Storm activities in 2022 being about 2.35% of the total supply, and the first round of staking rewards for EPG Holders being 1.25%. Currently, the cumulative known token distribution proportion is only 3.6%. It is foreseeable that there will be several rounds, even dozens of rounds of token incentive plans for EPG and EPS Holders in the future.

Aside from token incentives, Element's capabilities are far from fully unleashed, and more revolutionary innovations are being prepared to support the takeoff of rights NFTs. As Element's founder Wang Feng said:

Research and development are continuous.
Twitter and community are continuous.
Financing and investment are continuous.
Ecology and layout are continuous.

Since Element's inception, after more than a year of sedimentation, the sails are fully raised, and a new great voyage is about to set sail. The ups and downs, fluctuations, and shocks will be the norm in the sailing process, but in the face of the giant waves at sea, it is essential to have partners with consensus and shared goals working together to brave the wind and waves, reaching the new land on the other side.

Will you join Element on this great voyage?