GhostMarket has launched the GFUND, a single-sided staking-like feature that yields portions of daily minting rewards, trading fees, and exit fees accrued on the NFT marketplace. The GFUND is initially launching on Neo N3, the blockchain with the most activity on GhostMarket. The Neo-based GFUND will be seeded with 1 million GM tokens to distribute as minting rewards for the first three months.
The GFUND was created to incentivize long-term holding for the GM token, patterned after Flamingo’s FLUND. The “yield” derived from fees and minting rewards isn’t claimable by the user. Instead, it gets distributed to the entire GFUND and is realized as increased GM when users exit their positions in the fund. GFUND will receive GM rewards from the following areas:
- Minting rewards: approximately 1,000,000 GM tokens over the first three months
- Trading fees: 20% of trading fees from each NFT sale on the Neo blockchain on the platform
- Exit fees: 5% exit fee redistributed to GFUND
Note: each percentage of fee and reward allocation is subject to change by the development team based upon the GFUND’s performance.
Initially, the GM-to-GFUND token ratio will be 1:1, but will increase in GM that can be claimed for GFUND over time (i.e., 1.5:1, 2:1, etc.) as the pool adds GM tokens from trading fees, exit fees, and minting rewards.
The GM governance token is required to purchase shares of the GFUND. However, a Flamingo Finance integration offers support for purchases using any NEP-17 token. A swap will then happen on the back-end through Flamingo without users needing to leave the GhostMarket platform.
On Monday, Nov. 7, GhostMarket hosted a community call on its official Discord server. In the call, GhostMarket founder and CEO Vincent Geneste iterated how diligently the team had worked to make the GFUND process as straightforward as possible. He said, “This has been made dead simple. I don’t think it can be more simple than it is.”
Looking forward, GhostMarket intends to replicate the GFUND on each blockchain the NFT marketplace supports. Once live on other chains, GFUND holders will receive portions of fees according to the NFT trades that have taken place on that unique chain via the GhostMarket platform.
The full announcement can be found at the link below:
About The Author: Dylan Grabowski
Dylan is a reformed urban planner with a passion for covering the Neo ecosystem. His objective as a writer for Neo News Today is to report news in an objective, fact-based, non-sensational manner. When not behind a computer screen, he can be found in the mountains rock climbing. Find Dylan on Twitter (@GrabowskiDylan).
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