paint-brush
SparkWorld* has Launched a "Fair NFT Minting System" That Aims to Replace Whitelistsby@gabrielmanga
406 reads
406 reads

SparkWorld* has Launched a "Fair NFT Minting System" That Aims to Replace Whitelists

by Gabriel MangalindanMay 18th, 2022
Read on Terminal Reader
Read this story w/o Javascript
tldt arrow

Too Long; Didn't Read

SparkWorld, a community-driven web3 ecosystem driven by Fair Prediction Launches, has developed a new way for users to mint NFTs on its platform. The protocol aims to replace randomized allocation and whitelisting systems that are widely used by many NFT projects. Whitelists have attracted some scrutiny from investors due to the hoops users have to jump through just to gain a spot on the list. The Fair Prediction Launch protocol assigns users to ordered lists depending on the accuracy of their predictions, allowing each user a fair chance for a more valuable piece of the collection.

Company Mentioned

Mention Thumbnail
featured image - SparkWorld* has Launched a "Fair NFT Minting System" That Aims to Replace Whitelists
Gabriel Mangalindan HackerNoon profile picture

Over the course of time, the minting process for NFT projects has seen many iterations, transitioning from a first-come, first-serve (FCFS) model to whitelist slots and randomized allocations. There is a new protocol that has just been developed, and it is based on the predictions that have been made by members of the community in relation to the NFT collection.


SparkWorld*, a community-driven web3 ecosystem driven by Fair Prediction Launches (FPLs), has developed a new way for users to mint NFTs on its platform. The protocol aims to replace randomized allocation and whitelist systems that are widely used by many NFT projects.


Whitelists have attracted some scrutiny from investors due to the hoops users have to jump through just to gain a spot on the list, with thousands of users competing for a few hundred spots. Instead, SparkWorld*uses Fair Prediction Launches (FPLs), a system where users have the chance to predict the price of the native token of the blockchain on which the NFT collection is issued.

The Fair Prediction Launch protocol assigns users to ordered lists depending on the accuracy of their predictions, allowing each user a fair chance for a more valuable piece of the collection and eliminating whitelists and randomized minting.

Getting on a whitelist before an NFT drop is the greatest way for NFT fans to get their hands on the collections they want. Even the most dedicated NFT fans, however, are not assured a spot on the list. Randomized minting has negatives as well, as it fails to encourage any kind of involvement by relying just on chance.


Nonetheless, NFT project designers have had to rely on similar tactics in the past to avoid circumstances where a single wallet purchases the entire collection for a low price and then raises the price on the secondary market.

Whitelisting can be Beneficial for NFT Projects but it’s not Perfect

Whitelisting is a process where a certain number of community members are given allocation spots on a crowdfunding project, in this case, it would be an NFT mint. These whitelist spots usually come with conditions that users need to meet before qualifying.


These conditions can include joining the NFT projects Discord group, following its social media accounts, retweeting certain tweets, or other activities. Whitelist conditions also involve users having to verify their identity through the Know Your Customer (KYC) protocol a lot of the time.


Essentially, whitelisted community members are able to mint NFT hours or days before non-whitelisted investors. Whitelisted community members get to avoid "gas wars" this way since they won't be competing with a large number of investors who want to mint an NFT. This is amplified by the fact that many whitelist allocations can be small with only thousands of spots available.


Because the whitelisted community members are able to mint their NFTs before the general public, there are fewer transactions on the project's blockchain. This helps to avoid a sharp increase in fees which is a common occurrence when there's a high demand for transactions.


Allocated whitelist spots help early community members to mint their NFTs without having to worry about high transaction fees or being on time, however, there are some major drawbacks.


One of these issues is "whitelist grinding", a tedious process where community members complete numerous tasks just to get a whitelist spot. Examples include:


  • Inviting new community members to the Discord group
  • Proving that they are active in the community by continuously interacting with others in various Discord channels
  • Creating fan art, memes, and promotional material for the NFT project
  • Building a reputation in the Discord group by continuously helping other users


Whilst this may look good on the surface, many users find this frustrating and tedious, with users on Reddit calling it a “full-time job”. It has even gotten to the point where users are paying up to $1,000 just to hire a whitelist grinder to do all of the work for them.


Other problems include limited spaces on whitelist spots, and when you combine this with the grinding needed to earn a place on the whitelist, it becomes very difficult for most users to get whitelisted.


The SparkWorld* platform aims to change the NFT launch paradigm by assigning rewards algorithmically. As mentioned earlier, the Fair Prediction Launch protocol works by placing users in ordered lists based on how accurate their predictions were.


For example, let's say users had to predict the price of a token. The token price is $5. User A predicts a price of $4.50, User B says $3 and User C says $6. The list will go in the following order, User A, User C, and User B. The more accurate the user's prediction, the higher up the list they go.


This gives every user an equal opportunity to get a chance at minting additional NFTs in the collection. The team behind the protocol claims that this encourages a fair, and competitive user experience. Prediction events are also transparent and open to the general public, enabling any potential investor to get involved with the program.


The Fair Prediction Launch protocol includes a verification process that all projects must go through before being included which reduces the risk of a rug-pull or scam. In order to make a prediction, users need to deposit SPRK tokens into the platform's assigned prediction pool to compete for any NFT collection. When a user reaches a specific threshold, they are guaranteed an allocation spot and every pool participant receives a return on their investment regardless of prediction accuracy. SPRK also intends to provide voting and governance rights to SparkWorld* DAO holders in the future, allowing them a say in how the platform is administered. The first token generation event (TGE) will take place in June, with the main-net launch of the platform is scheduled for the end of June.

Conclusion

The minting process for NFT projects has evolved over time, going from first-come, first-serve (FCFS), to whitelist spots and randomized allocations. Now there is a new protocol based on predictions placed by community members that are related to the NFT collection. Will it take off the same way whitelisting has? We’ll have to wait and see.


Disclosure: This story was submitted to HackerNoon by an independent contributor. Hence the information contained therein has also been researched and compiled independently.