Pawn Bots NFTs Introducing a BuyBack Mechanism

For anyone who managed to jump on the NFT bandwagon before it turned into a rocketship to the moon, it’s been quite a ride. Prices for the earliest, most well-known collections have exploded, making a lot of early adopters insane amounts of money and many new millionaires. However, for anyone just now getting into the NFT space, the ride is getting quite a bit bumpier, and moonshots are not as easy to come by.

Keep in mind that every popular cultural phenomenon has cycles. Like a song on the radio, what’s getting overplayed today might be considered a one-hit-wonder in a few years’ time. There will be a few big hits that climb the charts, and even those will begin to fall to a plateau.

Non-fungible tokens (NFTs) are already becoming a buyers’ market. And a tsunami of new NFT projects will be making landfall over the course of this year. Unfortunately, this massive rise in supply is unlikely to be accompanied by a comparable rise in demand.

So how do newcomers who are attracted to the space decide which NFT projects are worthy investments? The answer is to find projects with collections that have utility, inherent value, and reduced risk.

Lessons from DeFi

At this stage of the game, in order to succeed in creating value and building equity, an NFT project must go beyond the cutting edge and present new and exciting use cases. Projects must provide value right out of the gate and then continue to create value over time. Not only that there has to be some built-in risk protection. Projects with lower risk will have an edge over those that are high risk.

There’s another sector of the crypto world that provides value while being far less risky than NFTs — that is decentralized finance.

Pawn Bots Buyback and Burn Mechanism

Several DeFi platforms now include token buybacks and burning mechanisms in order to consistently decrease circulating supply. Reducing supply without reducing demand introduces deflationary pressure. For example, Binance, the largest centralized crypto exchange, has instituted just such a buyback and burn mechanism.

Up until now, NFTs could only be burned intentionally or accidentally (by ending up in a dead wallet). Pawn Bots is one of the very first NFT collections to incorporate an buyback and burn mechanism —the same tech that makes DeFi possible.

Royalties from aftermarket sales are automatically used to buy Pawn Bots NFTs off the floor and then burn them, thus making the supply deflationary. The buybacks are funded by royalties on aftermarket sales. So the more trading the collection sees, the faster the supply declines. Just knowing this adds incentive to buy and sell Pawn Bots on the secondary market.

Borrow and Earn with PawnBots NFTs

Several DeFi tokens let holders borrow against their assets and earn interest via staking pools. There are also platforms out there that let people earn interest on their NFTs by loaning them. However, these services usually involve the two parties having to agree on the terms—that is, if you can find a lender at all.

Another aspect of the Pawn Bots NFT project that has been adapted from DeFi strategies is that it allows users to access their equity without having to sell their NFT and without having to get a third party to agree to the deal.

Hifi’s fixed-rate lending protocol and a soon-to-be-revealed DeFi composability layer will allow Pawn Bots NFTs to instantly be used to earn staking rewards and to serve as collateral for loans at a low fixed rate.