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  1. Akorn-White Paper
  2. NFT Marketplace

Liquidity Pool

If a holder of an NFT does not want to sell their NFT on the NFT marketplace they can trade it for tokens. This can only happen once the action has been measured and verified to have been completed. For example: an NFT that has 1,000 trees measured and verified to have been planted can be traded for 1,000 tree tokens. These tree tokens can be traded for USDC or other cryptocurrency value. In NFT form, every NFT is unique. NFTs can be pooled together based upon the information of the NFT (Attributes). Creating aggregated liquidity and ease for trade in the marketplace. Key to fair and efficient price discovery. Each pool has a unique configuration and carries a certain logic that dictates which NFTs can be deposited into it for pool tokens. For example, a NFT that was about tree planting in Nigeria could not deposit their NFT into a pool for tree planting in Madagascar, however they could deposit it into the Nigeria tree planting pool for tokens. When the NFT depositor successfully deposits the NFT new tokens are created and sent to the depositor’s wallet. An NFT representing a batch of 100 tree plantings is fractionalized into 100 tokens. When NFTs are turned into tokens, a percentage of those tokens are sent to the global DAO treasury to be used for further ecosystem development as well as the original NFT creator- the regenerative organization. Token Tax When tokens created by any of the NFT pools are traded in the marketplace, these tokens have a code for taxation built into them. For example there is a 10% tax that occurs on each transaction, 3% of this tax is sent to the regenerative action sector treasury, 3% is sent to the liquidity pool, and 4% is redistributed to the holders. The 3% that is sent to the treasury accumulates over time. The sector DAO (holders of the sector pool tokens) then elects when these funds will be used and for what purpose. The purpose could include but is not limited to, further marketing, paying for more regenerative actions to be done, onboarding new regenerative organizations or anything else that helps the ecosystem. Tokens with deep enough liquidity can be used to wrap tokens (such as Bitcoin with a tree planting token), games, create other NFTs, or other Regenerative Finance (Refi)) mechanisms. Localized Liquidity Creation of tokens based on location Localized currencies, tree in Africa

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Last updated 3 years ago

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