XP System Breakdown

The first liquidity and risk-based NFT-native rewards system transparently attributing incentive weights by user risk tolerance and real-time market dynamics.

Overview:

• Earn Passive XP daily for each Key you hold.

• Earn XP when making eligible (Earn+) purchases at a rate of 1 XP per $1 in volume.

• Earn XP by bidding and listing eligible (Earn+) collections on Mintify, and having your bid and listing orders filled. Mintify's liquidity is aggregated across other platforms.

• Earn a minimum of 10 XP per token minted on the Mintify Launchpad.

• Earn XP multipliers for every Key that you hold, native to its chain.

• Earn XP for token swaps (coming soon).

• Non-passive XP unlocks 50% over 5 days, and 50% over 25 days. If you sell the NFT before the XP is fully unlocked, it is forfeited (you only get volume-based XP for the sale).

• Use XP and $MINT to upgrade your Genesis and Bitcoin Keys (coming soon).

Collector & Holder Rewards

• Collection Sets: complete themed sets across a variety of eligible collections

  • Trait sets

  • Rarity sets

  • Onchain sets

• Rarity Bonus: top collections award XP multipliers for acquiring rares

  • Top 5%: +200% XP

  • Top 20%: +150% XP

• Launchpad: mint from the Mintify Launchpad and earn XP per token minted

  • 10 XP per token minted, unlocked 50% over 5 days, and 50% over 25 days

• Time Held: holders from the past 20-365 days earn head-start XP going into SZN1 (snapshot TBC)

  • More than 20 Days: +20,000 XP

  • More than 60 Days: +60,000 XP

  • More than 180 Days: +180,000 XP

  • More than 365 Days: +365,000 XP

Rewarding Risk-based Liquidity

Risk-Adjusted XP consists of several modular formulas built to independently normalize different aspects of NFT liquidity. This perspective enables seamless comparison and automation of scaling incentives based on a collection’s unique demand for liquidity.

In short, the smaller the ratio of a collection’s market capitalization to its orderbook depth (bids and listings), the larger the rewards for users on Mintify. Here's an example:

a) Market Cap $100k, Bid Liquidity $10k = Higher Multiplier b) Market Cap $100k, Bid Liquidity $50k = Lower Multiplier

Operating parallel to its modular NFT trading infrastructure, Risk-Adjusted XP allows everyday users to stay informed and make more educated trading decisions, while enabling power users to craft complex strategies through programmatic order execution and the Mintify Liquidity API (coming soon).

How It Works:

1. Position and Risk: The closer a user’s order to the floor price, and the less [buy/sell limit] order volume is between them and the floor price, the larger the order-associated multiplier.

2. Normalized Liquidity: The smaller a collection’s [normalized] orderbook volume * market capitalization, the larger the collection’s overall multipliers v.v.

3. Greater demand for liquidity = greater rewards.

Example Bid Spread Simluation

As a user bids above other buy (bid) limit orders and closer to the floor price, the larger the order-associated multiplier is.

Example Bid Spread Simulation:

• As a user bids above other buy (bid) limit orders and closer to the floor price, the larger the order-associated multiplier is.

• Dynamically adjusting incentives by a user’s associated risk and the collection’s normalized liquidity enables Mintify to transparently produce real-time estimates of XP attribution directly within bid-spread modules, bidding and listing modals, trending tables and collection KPI bars, or anywhere a user may find environmental variables useful for making well-informed decisions.

Bid & Listing Incentives

When you place an order, your XP attribution is dynamically adjusted based on:

• Your order’s position within the Orderbook and proximity to the floor price

• The time you placed the order relative to other orders at the same price

Bidding (Buy Limits):

• The closer your bid is to the current floor price, the higher your multiplier.

• The further your bid is to the current floor price, the lower your multiplier.

• The lower a collection's liquidity relative to its market capitalization, the larger the multipliers it can attribute to bidders (and vice versa).

Listing (Sell Limits):

• The closer your listing is to the current floor price, the higher your multiplier.

• The further your listing is to the current floor price, the lower your multiplier.

• The lower a collection's liquidity relative to its market capitalization, the larger the multipliers it can attribute to listers (and v.v.).

Cross-Chain Compatibility

XP uses a base rate of $1 per 1 XP, denominated in USD.

Direct Purchase Incentives

When you make a direct purchase, you earn XP based on the converted dollar value of your order.

• Making a Direct Purchase awards $1 per 1 XP and is further multiplied by Mintify Keys held on that chain.

System Components

Mintify’s Risk-Adjusted XP operates on a multifaceted approach, where each individual component adheres to strict requirements based inherently on executable value.

Real-Time Market Data

• Organizing raw collection parameters including supply, market (floor) price, market capitalization, and orderbook volume (buy/sell limit orders)

• Some real-time datapoints may have lagging metrics deployed to smooth volatile adjustments

Cumulative Orderbook Depth

• Quantifying the value of an asset’s available orderbook [buy/sell] liquidity relative to its market cap

Value of Liquidity & Demand

• Applying and normalizing raw market data to gauge the value of liquidity, and value of demand for liquidity

• Assessing excessive collection liquidity and its extrapolating impact on user risk

Inferred Overhead Limit Value

• Implicating aggregate value of [buy/sell] limit orders between a users’ order and the market (floor) price of a collection

Incentive Multiplier Calculation

• Determining a users’ [buy/sell limit] incentive multiplier based on the combined influence of above system components