Conflux NFT Index

Project Introduction

  1. Project Name: Conflux NFT Index
  2. Project Type: Exploratory
  3. Why us: The team members have rich experience in NFT field, and we are all working for well-known company.
  4. Introduction:Since the launch of crypto kitty in 2017, NFT market has experienced tremendous growth and become a complete ecology. Until now, the cumulative transaction volume is over 2 billion USD. Although NFT is still a Niche market compared to the traditional art market, consensus has been built up and the future is promising. However, the core challenge that the whole industry is facing is that the learning cost is still quite high. For the investors who are not crypto native,huge effort needs to be made to perceive the framework for the NFT market and build up their investment portfolio. So under the current stage of the NFT market, we believe there is a nature demand for all the market participants to have a NFT index to show how well the market has developed as well as provide a low threshold investment subject.
  5. Funding application time: 2021-8-12

Development Roadmap

Milestone 1: Doing the basic research to build up the structural framework for the NFT market and sum up the mathematical model to generate the NFT market index, which should be able to demonstrate the development of the market.

During this period, the first action is to deconstruct the NFT market,we would conduct our research based on research methods for traditional industry. We would divide NFT into different types and NFT participants into different layers. And on each type or layers, we would define the leading products for them based on the core business indicators based on their own business mode. Some of the indicators are public, like TVL and trading volume. We would also spend parts of our budget to get the acquisition for valuable data or research. After the research, we believe we would be able to gain further insight for the whole NFT market and gather adequate data to design the mathematical model of the index. During the first step, we believe 12k CFX would be needed, mainly for the data collection and data analysis work.

Specification: research and develop MVP;
numbers of the employees: 2;
milestone duration:30 days.
grant amount: 5K CFX

Milestone 2: To be a famous and effective NFT Index
Based on the outcome for the first period, we believe the next step to conduct more complex mathematical work for this index. We would conduct time series analysis, regression analysis as well as other mathematical frameworks to output the mathematical model for the index. We would continually modify our model based on the feedback from the conflux communities. Also, we would conduct the predictive analysis to verify the reliability and validity of our model.

What is more, we will try to integrate the index into other platform like ConfluxScan, DeBank and so on. 15k CFX would be needed for the data analysis work.

Specification: a more authoritative model for the NFT index and platform integration;
numbers of the employees: 2;
milestone duration:60 days.
grant amount: 15K CFX

Milestone3: After the model we build in the first milestone is proven to be effective, we would try to build up an investable financial product based on the model we make. The key action is to build up the combination of the underlining assets from different projects to fit the model we build in the first stage.
Cause the overall propose for this period is to build up an ETF portfolio, we would summarize the investable assets in the NFT market such as the series of the tokens for top NFT project and put them as the underlining assets to publish our ETF. In this period, we would also try to build up our community to work together to promote the project growth. Depending on the development of our project and the community we would gather, we would publish the DAO function in the proper time so that the community members can participate and benefit from the development of the project. During this period, we would be in need for 50k CFX, which would be mainly consumed by the development of the product and the operation of the community.

Specification: NFT index as a financial product.
numbers of the employees: 4;
milestone duration: 120 days.
grant amount: 50K CFX

Long Term Vision

We are committed to building an industry-leading NFT index,like ahr999 index. And we name it Conflux NFT Index. This NFT index can accurately predict the development and cycle of the industry, and can provide an effective reference for NFT investment. At the same time, we hope that the authority of this index can enhance the global influence for Conflux brand. What is more, we would try to build up an investable financial product based on the model we make. We name it Conflux NFT ETF.

Team

Sheldon: Sheldon graduated from Pennsylvania State University with the bachelor degree in mathematics. He is currently working as a senior Java programmer for the company at BAT-level. Before this working experience, he worked for a famous blockchain company as a blockchain developer for 2 years. Sheldon will be responsible for the technical development of the Conflux NFT index.

Kevin Yang: Yang graduated from Fudan University with a bachelor’s degree, and then went to Columbia University to pursue a master’s degree. He is currently working as a senior blockchain product manager for the company at BAT-level. Yang will be responsible for the product design of the Conflux NFT index.


Github address: https://github.com/sheldonzhao/conflux-nft-index

2 Likes

Hi @SheldonZhao , thanks for the submitting your proposal! Just some clarifying questions:

  • Can you please provide more information on your milestones and development roadmap? They will need to be milestones we can objectively evaluate. I.e. what smart contracts will be deployed on Conflux? Will there be a UI? Any community activities?
  • Can you include total budget amounts for each milestone as well? Grants are released based on milestones being reached and not released at once.

To agree with what @Geoff said. You mentioned “We name it Conflux NFT ETF” is there plans for making it a ETF in future?

Hi, my partner Yang will answer the question about milestones and roadmap. I just answer the question from technical perspective.

  • For the first question, I will write a Java program to generate NFT index, so temporarily smart contract is not needed. By the way, I have started to write the code and uploaded the code to Github. The code address is https://github.com/sheldonzhao/conflux-nft-index.
  • For the second question, there will be a UI to display the index. Actually, I hope the index can be integrated to ConfluxScan.
  • For the third question, of course, community activities are very significant and we can get a lot of suggestions from community. I believe that the success of any project must be based on the community.
  • For the fourth question, ETF is a very long-term plan for us. Currently the team will focus on the recognition of NFT index. Only when many people agree that this index is very effective, we will start to think about it.

Milestone 1: Doing the basic research to build up the structural framework for the NFT market and sum up the mathematical model to generate the NFT market index, which should be able to demonstrate the development of the market.

During this period, the first action is to deconstruct the NFT market,we would conduct our research based on research methods for traditional industry. We would divide NFT into different types and NFT participants into different layers. And on each type or layers, we would define the leading products for them based on the core business indicators based on their own business mode. Some of the indicators are public, like TVL and trading volume. We would also spend parts of our budget to get the acquisition for valuable data or research. After the research, we believe we would be able to gain further insight for the whole NFT market and gather adequate data to design the mathematical model of the index. During the first step, we believe 12k CFX would be needed, mainly for the data collection and data analysis work.

Specification: research and develop MVP;
numbers of the employees: 2;
milestone duration:60 days.
grant amount: 12K CFX

Milestone 2: To be a famous and effective NFT Index
Based on the outcome for the first period, we believe the next step to conduct more complex mathematical work for this index. We would conduct time series analysis, regression analysis as well as other mathematical frameworks to output the mathematical model for the index. We would continually modify our model based on the feedback from the conflux communities. Also, we would conduct the predictive analysis to verify the reliability and validity of our model.

What is more, we will try to integrate the index into other platform like ConfluxScan, DeBank and so on. 15k CFX would be needed for the data analysis work.

Specification: a more authoritative model for the NFT index and platform integration;
numbers of the employees: 2;
milestone duration:60 days.
grant amount: 15K CFX

Milestone3: After the model we build in the first milestone is proven to be effective, we would try to build up an investable financial product based on the model we make. The key action is to build up the combination of the underlining assets from different projects to fit the model we build in the first stage.
Cause the overall propose for this period is to build up an ETF portfolio, we would summarize the investable assets in the NFT market such as the series of the tokens for top NFT project and put them as the underlining assets to publish our ETF. In this period, we would also try to build up our community to work together to promote the project growth. Depending on the development of our project and the community we would gather, we would publish the DAO function in the proper time so that the community members can participate and benefit from the development of the project. During this period, we would be in need for 50k CFX, which would be mainly consumed by the development of the product and the operation of the community.

Specification: NFT index as a financial product.
numbers of the employees: 4;
milestone duration: 120 days.
grant amount: 50K CFX

1 Like

Hi! Welcome to Conflux!

Two questions here:

  1. How can we evaluate whether the index generated by the mathematical model is effective?
  2. Can you provide more details about the milestone3? Is the ETF kind of synthetic assets based on bundled NFTs? Will you setup a Dapp for your ETF? For 120 days are quite a long time for milestone3. And it seems that you are only focusing on the index during milestone1 and milestone2 (120 days in total).
1 Like

Hi, thanks for applying for a Conflux Network grant!

An NFT index is an interesting idea. Do you know of any similar products on the market?

Given that milestones 2 and 3 depend heavily on 1, which is kind of a feasibility study, my suggestion is to divide this application into multiple smaller applications. The first one could be a small grant to do your study and share it in some form with our community. Then, based on your findings, we can approve another grant to build it into a product.

2 Likes

Currently there is no similar index in the market. I agree with your idea of breaking down the project. I think the project should be run quickly at this stage. And I adjust the grant amount from 12K to 5K. We need to move forward to start the research! By the way, NFT is so hot currently.

For the first question, I believe any mathematical model needs time to verify. The famous AHR999 index has also been verified for a long time before it proves its effectiveness.

For the second question, the effectiveness of the NFT index is the basis for establishing EFT. Only when everyone believes in the effectiveness of this index will everyone buy EFT, which is why we focused on the index in the first two milestones. After all, EFT is a very long-term goal. I think we should move the project forward now.

Congratulations @SheldonZhao, your Conflux NFT Index grant application has been approved by the Global Grants Committee!

For reference, below are the voting results: