xGov Proposal 158: X-NFT Cardano Integration, one way bridge from ADA to Algo

Governance xGov Proposals
,
1

Authors: Giles Campbell, Dom
Advisors: Michael Cotton, AJ Milne
Discussions: Twitter
Company Name: X-NFT
Category: DeFi
Focus Area: Cross-Chain Marketing Program
Open Source: No
Amount Requested: 170,000A
Status: Proposal

Abstract

The X-NFT team proposes to create a targeted release to bring Cardano users to Algorand. To do this the X-NFT team will develop an NFT collection specifically marketed to and targeted at the Cardano community that would be redeemable on Algorand. X-NFT tokens would be minted on Cardano, and users who earn / receive the token will be able to seamlessly transfer through a one-way bridge to Algorand, where it would be burned, and then replaced by the Algorand native X-NFT token. The idea and aim is to bring users from Cardano to Algorand. We believe that there is a high likelihood that users who receive X-NFT rewards within the Cardano ecosystem will bridge and use Algorand to realise the value of these rewards. X-NFT distribution will be via targeting areas with the highest number of suitable users. The token’s utility and focused liquidity will remain on Algorand acting as the driving force behind the need to bridge to Algorand.

Team

  • Giles Campbell - Co-Founder
  • Michael Cotton - Co-Founder
  • Dom - Core Blockchain Developer

Advisors

  • AJ Milne - Advisor

Experience with Algorand

X-NFT’s journey on Algorand has been marked by pioneering innovations in the intersection of decentralised finance (DeFi) and non-fungible tokens (NFTs). Through strategic partnerships, such as the groundbreaking collaboration with Meld Gold, X-NFT has introduced novel concepts like physically backed gold, silver, and bronze collector awards, providing a tangible and prestigious dimension to the digital art space. The implementation of a burn mechanism and dynamic rarity scoring not only enhances the value of X-NFTs but also establishes a sustainable and dynamic marketplace. This experience underscores X-NFT’s dedication to pushing the boundaries of innovation while fostering a vibrant and community-driven ecosystem on Algorand.

Present Proposal

This proposal seeks funding for the development of an incentive program to bring Cardano users to Algorand via a one-way bridge for the X-NFT token, fostering a seamless connection between Cardano and Algorand. The strategic burn-and-mint process ensures the transition from Cardano-generated X-NFT to the native Algorand X-NFT, incentivising users through rewards on Cardano’s DeFi platforms.

Benefits for the community

Bringing Cardano users to Algorand! We believe once exposed to Algorand technology many Cardano users will be ‘sticky’ in continuing to use and participate in the DeFi and NFT ecosystem. The development of the project also allows for the program to be repeated at a fraction of the cost.

Liquidity Hub on Algorand:

All primary liquidity and functionality will be concentrated on Algorand.

Dual-Platform Incentives

Rewards on Cardano’s DeFi platforms drive engagement, eyeballs and incentivize users to bridge to Algorand.

Additional information

Website Twitter/X

2

Will you be bringing Cardano artists over to Algorand? Do you think the token will desirable enough for ADA users to come over to Algorand, make a wallet, opt in etc?

3

It would certainly give us exposure to the Cardano space and enable us to become more involved in their NFT community and expose them to X-NFT. In this sense we would certainly be reaching out to them. I think if you had $30-$50 of tokens available to you and all you need to do to access them is bridge to Algorand, open a wallet here and start using them we certainly see people making that leap. Essentially we are incentivising ADA users to come and experience Algorand.

4

@mc_aus you advising here as well?

5

This is a good idea to on board some users from ADA community and set up a wallet and stuff let’s do this . I don’t know much about ADA but I know John does and I bet he be more then willing to help out make some introductions this would also give Algorand some more ways of going to the chain I was wondering you thank in the future it be possible to make it a two way bridge :slightly_smiling_face: in the future

6

Never mind about my last point I see Algomint going to make a two way bridge nice :slightly_smiling_face:

1 Like
7

Some background: I’m a big advocate of cross-pollination between ADA + ALGO ecos. I’ve been a part of ADA NFT communities for well over a year, and enjoy having many cross-chain collectors from ADA of my own collections here on ALGO… I truly see an opportunity for growth between both ecos with more collaboration.

Bridges aren’t the solution to the problem

Bridging doesn’t have significantly less friction points than swapping some ADA → ALGO on a CEX and setting up a new pera wallet… you still need people to make that pera wallet.

And most importantly you need people to want to make that pera wallet. Building a bridge, doing a token swap… all that technical stuff is all relatively simple compared to the social aspects that drive NFT communities.

Creating an ecosystem/culture/community that people genuinely want to be a part of longer term is much harder and more complex that no amount of grant funds fix.

The actual x-chain problem: social capital

The questions I have with this proposal is whether it has the key aspects needed for the success of such an initiative - social capital.

I have full belief in the teams technical ability, but…

The X-NFT twitter account is barely 1 month old and off the back of two NFT collection launches on Algo - both assisted with incentives via TDR (and/or xGov grants?)

Have you achieved a prolonged period of success within Algo NFT itself?

Have you achieved a critical mass of collectors to help you expand?

Are you already building genuine personal connections and trust with ADA NFT project leads?

Are your collections known within the greater NFT culture as a whole?

Is this proposal reliant/independent from proposal 158?

A x-chain initiative that does work:

See collaboration with Sappy Seals x TAS for a cross-chain NFT launch primed for success. The reason: Loaded with social capital.

Thank you for coming to my Ted Talk

4 Likes
8

without a cardano artist supporting it i dont think they would care really to redeem the X-NFT to mint a NFT, they would just dump them here and leave again.

the gamification of X-NFT is kinda cool but even here i dont see a lot of people farming X-NFT to mint the actual NFTs but i could be a bit wrong here. looking at the total secondary volume people on algorand dont seem to care too much about buying those minted NFTs…

2 Likes
9

If successful with this proposal the aim would be to onboard ADA artists. Like you say the project is still in its infancy but is growing.

10

What bridge are you using? The one proposed by AlgoMint? If so, then this seems like a premature proposal given that the Algomint bridge proposal has not been approved, much less been built.

What would the 170k Algo be used towards if it is not being used to actually build a bridge? I’m not sure why it costs 170k Algo to mint an asset on Cardano that is then bridged over. So, what is that breakdown of spend here? Are we just essentially covering the cost to to buy X-NFT tokens from the X-NFT treasury?

How would people be selected on Cardano?

I’m really concerned that this proposal will just result in Cardano users airdrop farming, bridging the tokens, selling the tokens here for Algo, then just cashing those Algo out on a CEX for cash or more ADA. It seems like instead of adding to our own liquidity we could end up giving liquidity up since there is not a great reason to think it will remain on Algorand.

2 Likes
11

The ask covers the build of a one way bridge, tutorials and marketing to ADA users, development of an ADA focused NFT series (preferably completed by a Cardano native artist).

12

The proposal has been updated taking into consideration community feedback: