NEW ZORA FEATURE:
-EVERY 1155 TOKEN CAN BE WRAPPED (OR TRADED IN) FOR AN ERC-20 TOKEN ONCE THE MINT CLOSES.
-A PORTION OF THE PROTOCOL FEE (.0000111 OUT OF THE .000111 FEE) WILL BE ADDED TO A LOCKED LIQUIDITY POOL FOR THAT TOKEN
-A PORTION OF THE LP FEE WILL GO TO THE TOKEN CREATOR
-ANYONE HOLDING THE ERC-1155 TOKEN CAN ADD LIQUIDITY TO THE TOKEN’S LP AFTER WRAPPING THEIR TOKEN AS AN ERC-20 (CURRENTLY ONLY AVAILABLE THROUGH A CONTRACT CALL)
-THE ZORA MINT PAGE IS STRUCTURED TO HAVE ALL SECONDARY TRANSACTIONS HAPPEN THROUGH THE ERC-20 TOKEN
-THE LP FEE IS A FUNCTIONAL CREATOR ROYALTY IN PERPETUITY.
WHAT DOES THIS MEAN?
-ZORA HAS REDUCED IT’S PROTOCOL FEE IN EXCHANGE FOR LIQUIDITY ON SECONDARY MARKETS.
-ZORA IS LOOKING TO REPLACE THE OFF-CHAIN SECONDARY MARKET OPENSEA WITH AN ON-CHAIN SECONDARY MARKET FROM UNISWAP
-UNISWAP PROTOCOL V.4 UPGRADE CURRENTLY BEING AUDITED
-UNISWAP ALLOWS FOR A MORE EFFICIENT SECONDARY MARKET SPECIFICALLY FOR PRICE DISCOVERY.
-EFFICIENT PRICE DISCOVERY HAS THE ABILITY TO TURN ILLIQUID SECONDARY MARKETS LIQUID
THE SECONDARY MARKET IS BECOMING MORE EFFICIENT
PRICE DISCOVERY AND LIQUIDITY FOR TOKENS = MORE SECONDARY
ROYALTIES FOR CREATORS MEANS MORE SECONDARY VOLUME
UNISWAP IS GROWING AND UPGRADING ITS PROTOCOL
THE ABOVE FACTORS WILL LEAD TO BETTER PRICE DISCOVERY
ON SECONDARY MARKETS.
INVESTING IN THE LIQUIDITY OF A TOKEN ENCOURAGES ORGANIC PRICE DISCOVERY FOR THAT TOKEN.
LET THE SECONDARY MARKET PRICE THE TOKENS.
GENERATE VALUE IN THE SECONDARY MARKET AND USE THAT TO INFORM PRICING IN THE PRIMARY MARKET.
INVESTING IN THESE LPS IS STAKING CREATORS.
INVESTING IN LIQUIDITY ALLOWS FOR THE MARKET TO PRICE THE TOKEN.
WE ARE THE MARKET.
DON’T MAKE NUMBER GO UP.
MAKE NUMBER GO.
THESE ARE JUST MY INTERPRETATIONS OF PUBLICLY AVAILABLE INFORMATION, I AM NOT A ZORA EMPLOYEE AND THIS IS NOT FINANCIAL ADVICE.
I honestly appreciate this change, there is a world in which this can feel and look good beyond the abstract version that requires a bit more contract & token expertise than likely most artists / collectors who haven’t ventured into the defi / trading side of this universe. Even if this were fully fleshed out, simple to understand and execute to a degree that any recently onboarded (novice) user was able to digest, see the value and utilize. The elephant in the room is still the main purpose for most artists to even use a platform. Discovery / visibility / reach. If this would have rolled out months ago before changes to following / discover & the search feeds. It might have had a chance to be better received. But when the “today/new” feed is truncated to displaying only a few select mystery mints instead of real time. At the same time the following / discover user feeds are congested with seeing the same popular thing everyone is minting and at the cost of not seeing new things created by the people you follow. It makes it hard for new or existing artists, collectors to feel good about secondary markets when the same mechanics used in the legacy platforms that made pivoting even make sense. Have been implemented in an ecosystem where discovery & reach are tied to possibility of monetary incentives. and to be clear, if I was benefitting from this existing model even at the highest level it still wouldn’t feel good because it’s a transparently broken model easily manipulated. I say this all with love. I’m definitely not the only one who notices or is disappointed in this taking place. I’m just less inclined to put my self preservation over making an attempt to signal “There is glaring, unhealthy flaw” when it’s still early enough to course correct and patch the bugs.
If those unhealthy bugs aren’t an oversight & are instead the intended function. I don’t mind that being communicated directly so I don’t keep wasting time trying to hold onto Hope that this is something we can return to championing and recommending 🫂
echoing @cxy here, concept is great but abstract. Would love to see more tangible UX around what this all means, when wrap/transfers/ 2ndary markets actually trigger.
echoing @cxy here, concept is great but abstract. Would love to see more tangible UX around what this all means, when wrap/transfers/ 2ndary markets actually trigger.
The key point for me was "Zora is looking to replace ... secondary market OpenSea with ... secondary market from Uniswap"
Previously I was presuming that Zora's intent was for every 1155 to become an ERC-20 token.
But now I see that it's not a forgone conclusion; it's an opportunity that only needs to occur if it makes sense.
A critical thing that would make this scheme feel more coherent & palatable is a UI for the secondary market; something that presents it as a useful & desirable extension of the existing NFT universe and not an abstract concept that harkens back to a time of toxic speculation.
buildinginpublic
Zora Go.
Zora Go.
The key point for me was "Zora is looking to replace ... secondary market OpenSea with ... secondary market from Uniswap"
Previously I was presuming that Zora's intent was for every 1155 to become an ERC-20 token.
But now I see that it's not a forgone conclusion; it's an opportunity that only needs to occur if it makes sense.
A critical thing that would make this scheme feel more coherent & palatable is a UI for the secondary market; something that presents it as a useful & desirable extension of the existing NFT universe and not an abstract concept that harkens back to a time of toxic speculation.