2021 has been a crazy year for the crypto industry. There was a gigantic surge in DeFi, then NFTs took over the world like a storm. This paved the way for GameFI and Metaverses to take the center stage. While many people believe that NFTs are just JPEGs which are bought by rich brats to maintain their social clout, I beg to differ. While these critics aren’t wrong completely, they just don’t see the big picture yet. From being a part of this clan to purchasing my first digital art based NFT, life has come a long way.
Before you start bashing me for switching sides, I want to document the reasons behind the purchase and the use-cases that triggered this decision. It’s not just an art that sits in my wallet (more on it in a while). So without further build up, I recently purchased Lakshmi NFT. No matter how much you degens say that you’re in here for the technology, money is obviously a big part of the game.
So, in today’s blogpost, let’s talk about what is Laxmi NFT? Should you consider buying it? And if that turns out to be a yes, how to go about it. Let’s get started.
What is Lakshmi NFT by Zionverse?:
Let’s address the Zionverse part of it first. Zionverse intends to build an Indian mythology inspired metaverse. The Lakshmi NFT is a part of this project. Run by a company called Totality Corp, it’s a very Indian twist on this whole world of NFTs. At least in terms of relatability, I would relate to a Lakshmi JPEG more than an ape (well, not talking about evolutionary background here).
Secondly, for those of you who don’t know, Lakshmi is worshipped across the country for her blessings of wealth. And yet again, we are in here for moolah right? No? Okay!
Anyway, so each NFT consists of two components. One is the MP4 video of goddess Lakshmi and her avatars and the other is an MP3 file that contains a soothing music to go with your NFT.
The Economics of Lakshmi NFT:
This is where I got sold. According to the founder Anshul Rustaggi, NFTs like Crypto punks, BAYC, MAYC have a sole purpose of flexing. Even though there’s a lot of value attached to these NFTs, there is no economics around it. They hold value because everyone thinks it has value.
And I personally don’t want to buy a NFT solely for flaunting my money. It needs to give me something tangible. And the Lakshmi NFT hit that exact note.
Lakshmi NFT is a loot-box based NFT distribution system. This means that buyer could randomly get any NFT out of the total collection. For this project, there are a total of 5,555 Lakshmi NFTs. Each NFT costs 101 USDC (or $101) and you can buy as many as you want. Also, did I mention that each NFT is tied with a 36% APY. This means that a base floor of 36% interest can be earned for holding (and staking) these NFTs.
But then, what’s the difference between these avatars? Here’s where it gets really exciting. Each Lakshmi NFT represents certain avatars of goddess Lakshmi. Based on the rarity, your NFT is allocated a GPA (Gold Procuring Ability). This is basically a multiplier on the floor APY of 36%. It can vary from 0.5 to 3.
Depending on the GPA your NFT carries, this interest can vary between 108% (highest) or 18% (lowest). The table below highlights the rarity and GPA attached to each type of NFT.
Should I Buy?
If the minimum rate of interest is fixed at 18%, it is still better than any other traditional asset class in India. So why is this question even coming to my mind? Not so soon baby! Let’s discuss what happens once you get the NFT.
Basis your luck, you land any of the aforementioned NFTs. But this APY isn’t for lifetime. It is meant only for one year. After that one year, you can use your NFT as an entry ticket to a game called ‘Vijayi Dash‘.
Drum rolls! Yes, a simple game involving some basic functions like walk/run, jump, crouch and push. You compete against 50 other players and of course time isn’t by your side. The sooner you complete the track, higher you score.
After 10 rounds of Vijayi Dash, you are scored basis your performance. It’s all fun and games until this point. Let’s talk money now.
There is a base reward of $100 (or 100 USDC) for each player in the game. Basis your performance, there’s yet another multiplier ranging from 0.5x to 10x. If you don’t play the game at all, you get 0.5 * 100= $50. Alternatively you could end up with a $1000 if you are good at it.
Inference:
This is where it all boils down to. So if you think that you are not a gamer type or stand no chance if winning Vijayi Dash, consider your principal after the end of staking period to be $50. Now if you have got an NFT with GPA>2, you would be in a net profit. Else, you will always lose.
For calculating your gains simply subtract 50% from the APY you are getting by staking the NFT. Why? Because your principal takes a 50% hit (least you can make in the game is $50) if you skip playing or suck at the game.
But hey, don’t be pessimistic. For all we know you could nail Vijayi Dash!
Early Adoption Perks:
That’s the beauty of web3 right? It tries to democratize the wealth. Also, just like web2 companies which tried to give you free rides or free credit, adoption needs to be driven here too! So first 444 holders of NFTs get $21 as a joining bonus. Refer to the table below for the rewards available in other slabs.
Conclusion:
Well, I was rather lucky. I got a tier 3 rare NFT containing 7 gods. It’s called the ‘Sapta Lakshmi’. I am currently getting a 72% APY currently. This also means that I am getting a net APY of 22% even if I lose bigtime in the game. I know this isn’t a crazy return in the crypto space, but I am happy with whatever I have got. Next steps? Buying BTC on CoinDCX with my retruns
So, what are your plans of buying an NFT?
Got questions? Want to take it to the next level? Reach out to me using your preferred platform from the links below
Until next time..
Btw, if you are a seasoned trader or just testing the waters with derivatives, here’s an exchange specifically meant for that. Head over to MCS using this link. Still not convinced? Join the vibrant community that is talking about MCS on Telegram, here.
Very useful information.
But I do have some questions.
1. Does one Lakshmi NFT means 1 ticket for game entry. If we have 10 NFTs can we play the game 10 times?
2. Can we sell our NFT to recover the principal amount?
3. In this article you mentioned the GPA should be more than 2 to earn a net profit but shouldn’t it be more than 1 according to the table to earn a net profit.(considering we don’t play the game or lose badly).
Hi Harshit, thanks.
1. 1 NFT means one ticket. Each ticket will allow you to play 10 rounds and then scores will be accumulated.
10 NFTs would mean 10 different entries.
2. You can sell the NFT on a platform like opensea after unstaking it. Depends on the buyers at that time.
3. So a GPA 1 would mean 36% APY. Since the lowest you could get in the game is $50 (a 50% loss on principal), the 36% APY would mean a net loss.
Thanks for the reply
Also on GPA 1.5 (54%) and GPA 2 (72%) there will also be a net profit.
Fair point, missed on to 1.5 scenario. Thanks.
I think you need to change where you mentioned GPA>2 , to GPA>1 in this article.
All of what you have written will come to pass only if Zioverse is around to settle dues at the end of the year. In a system which has no statutory governance, mortality of businesses will not be secured. And these businesses seem really likely to perish.
Agreed. Which is why crypto as an asset class is high risk high reward. That’s true with every thing in this space.
Thanks for this very outstanding article, it’s a real lot actually and was really helpful. Thank you