FAQ's

About Loot NFT

  • What is Loot NFT?

    A gamified, patent pending, platform where members use bid units (BUNs) to bid in non-fungible token (NFT) auctions. Outside of the open member email whitelisting period ending at 23:59 UTC 30 June 2021, membership is by invitation only.

    Members can buy NFTs in auctions (and resell them). They can also collect NFTs in a themed set to unlock rewards. Creators showcase their work in the auction arena (i.e., the page on which all live auctions are listed) and receive the attention of members through the bidding process. In turn, they get noticed and compensated in the world’s first NFT talent show.

  • What is a BUN?

    The BUN is a cryptographic token of a limited supply (total of 500,000,000) used to bid at auctions and to consume for services on Loot NFT. Initially, the BUNs used are virtual units in a centralized database (BUN IOU) that mirrors the cryptographic token. The BUN was minted on the Cardano blockchain (BUN) and the LNFTxHABN permissioned blockchain (M-BUN). This triplication is for technological, commercial and audit reasons and happens in the background; members only have to deal with a BUN as a single unit.

  • What are LTT?

    The Loot Tickets (LTT) are mined by a member for each 13 BUNs a member bids in auction (this includes the joining fee).

    Think of it like redemption tickets you get at an arcade for playing games. Here, the LTT is a cryptocurrency (initially minted on the LNFTxHABN permissioned blockchain).

    LTT will be used around October as the sole purchase currency for items commissioned by Loot NFT for its Satoshi’s Lounge exclusive store. Every time a purchase is made, LTT are burned (or retired from circulation).

    We may increase the ratio of BUNs bid to LTT minted for future members signing up while grandfathering existing members to keep the ratio they first obtained.

  • What is the Oven?

    The Oven is a time-locked wallet that receives all of the BUNs spent by members on Loot NFT over 7-day periods (Saturday to subsequent Saturday). The Oven distributes BUNs back in the Loot NFT ecosystem at 00:00 UTC every Sunday. Members receive 20% as rewards and Loot NFT receives the other 80% for resale to members.

  • What is a Battle Bidding Auction?

    In a Battle Bidding auction, members spend 1 BUN to bid in a time-limited auction. This is a pay-to-bid process where BUNs are consumed and not refundable if a member does not get the NFT. Members must allow another member to bid before bidding again. If a bid is received in the last 15 seconds of the auction, the timer resets back to 15 seconds. The member that bids last before the timer expires wins the NFT.

  • What is an NFT?

    An NFT is a cryptographic token that establishes the authenticity, ownership, and transferability of a unique creation; it is in effect, a digital asset. No two NFTs are alike. On our platform the owner of an NFT is also the owner of the physical creation linked to that NFT (in digital-physical scenarios).

  • Are all of the NFTs on Loot NFT unique?

    Yes.

  • Are all NFTs in relation to artwork?

    No. The types of NFTs we list for auction are as follows:

    1. All NFTs are embodiments of final and completed creations. This means that they are purchased and sold as is and no further rights, other than the right of ownership, can be derived from it (such as, an NFT granting a royalty, or a revenue stream).

    2. All works are by the source creator (e.g., if a photo, the person that took and owns the rights to that photo).

    3. NFTs are classified in the following categories:

      1. Artwork (e.g., paintings, sculptures, or other digital or digital and physical artwork)

      2. Videos (e.g., music videos, celebrity messages, etc.)

      3. Historical Pieces (e.g., screen captures, architectural drawings, photos of unique moments in history, etc.)

      4. Music or Audio Files (e.g., podcasts, audio books, etc.)

      5. Models (e.g., model airplanes, boats, buildings, etc.)

      6. Mechanical objects, unregistered for operations (e.g., unique designed one of one motor vehicles, crafts, etc.). Mechanical objects could, however, be registered by its owner (think of the Batmobile that works, but may not suitable to be driven on a highway).

  • Are all of the NFTs a part of a set of collectibles?

    Yes. Every NFT on Loot NFT is unique and part of a themed set of 5.

  • What are “degrees”?

    When a member collects a majority of NFTs in a set (e.g., 3 out of 5), they achieve a degree (i.e., a status level). The highest level that can be achieved on Loot NFT is the 5th degree. Each degree gives more BUN rewards to a member than what they would otherwise have had as someone without it.

  • What are mystery gifts?

    If a member collects a full NFT set, they get a mystery gift. As its name suggests, the gift is a mystery.

  • What is the ultimate goal for members?

    To get the 5th degree (complete 5 sets of NFTs) and unlock the holy grail of admiration and legendary status.

  • Will you have a Hall of Fame for members completing sets?

    Absolutely. Hall of Famers will be listed in the “Rewards” section of the Loot NFT website.

  • Help me with the lingo?

    ADA stands for the native cryptocurrency of the Cardano Blockchain.

    BUN stands for Bid Unit.

    USDC stands for USD Coin, a pegged cryptocurrency to the US dollar.

    The Oven is a time-locked wallet that receives all BUNs spent on the platform and distributes it back to members and Loot NFT every Sunday at 00:00 UTC.

    NFT stands for Non-Fungible Token.

    Creators are any person whose creation is being minted into an NFT for auction.

    Creations are all works by creators that is embodied in the rights granted by an NFT and listed on auction. Creations can be digital only, or digital and physical.

    Sets are a collection of unique NFTs belonging to a particular theme and that can be completed by members to unlock benefits.

    LNFTxHABN stands for the Loot NFT permissioned blockchain powered by HABN.

    Cardano stands for the Cardano Blockchain.

    DAO stands for decentralized autonomous organization.

    Blockchain Bridge is a bridge using escrow wallets between LNFT and Cardano.

    Degrees are a status level giving special benefits to members.

  • How do I partner with you?

    Check out the “Join our Team” page on the Loot NFT website to contact us.

For Creators

  • How do creators participate?

    A creator is someone who creates works (i.e, creations) that we tokenize as an NFT to list at auction. Unlike platforms like OpenSea and Wax, creators cannot list their creations for auction by themselves. All creations are curated as part of a set of NFTs with a particular theme for which the creator is commissioned. Creators must attest that the creation is theirs, is original, that it shall not be reproduced for commercial gain, and that they have given us an exclusive right to sell the same at auction on Loot NFT. Creators can approach us directly or work with our agents.

  • As a creator, do I need to convert my work into an NFT?

    No. We do the tokenizing work and cover the shipping costs for creations that are physical until it is in our custody. We also take care of contracts, insurance, cataloguing, etc. However, we will require you to provide us with a high quality (4K) digital image of the creation if physical and a link to your biography or webpage (can also be Instagram or other social sites).

  • My creation is a physical item. When do I send it to you?

    We do not require you to send us the physical item before the auction. However, we do reserve the option to hold any proceeds from that auction until we receive the physical item (i.e., you will not get paid unless we have the item in custody). If we do not receive the item within 90 days of an auction, we may remove its description as a physical item and use the proceeds from the auction to compensate the member that won that NFT. The NFT will then remain as a digital only representation of the work.

  • Why do members who resell NFTs receive 60% of the proceeds of an auction and creators only receive 40%?

    Reselling demands less legwork for us. In this process, we act as an agent where we take a lower fee as opposed to our work in a creators listing process. If we agree on a price, you can also sell your creation outright to us. If that is the case, having bought that item we will list it for auction in our name and you will not get any proceeds from that auction.

  • Why do creators only receive 40% of all auction proceeds?

    Loot NFT performs several roles along the value chain, including curating, custody, listing, technology upkeep, marketing, and more. These tasks come with real associated costs. This differs from being an agent taking a commission on a sale. In addition, Battle Bidding auctions have the potential to significantly boost the visibility of a creator beyond traditional auctions. The risk to the creator is that the creation does not meet expectations, which is why we may also beforehand mutually agree on an upfront purchase of the creation instead of a consignment arrangement.

Blockchain Technology

  • How does the blockchain fit in?

    What members see is simply the tip of the iceberg with Loot NFT as the complexity is in the gamification science and the technology behind the mechanics of an ecosystem.

    We use the blockchain to:

    1. provide assurance that no more than 500,000,000 BUNs can ever be issued,
    2. track all member interactions (BUNs and NFT transactions) such that they cannot be falsified and to prove that we are not engaged in bot bidding to push up auction prices,
    3. allow members the ability to secure BUNs themselves, and
    4. create a web of smart contracts towards a complete (as much as is possible) decentralized infrastructure known as a decentralized autonomous organization (DAO).

    The DAO entrusts the governance of member interactions to the members instead of a centralized infrastructure within the boundaries of the actions permitted by the smart contracts; it also allows Loot NFT, having created and launched the platform, to exit day-to-day operations, and collect royalties for as long as the blockchain on which it lives exists (and members find the activities in which they participate valuable). An analogy would be like a natural resource on a physical piece of land existing for as long as the wells keep producing (i.e., our experiment is to create a natural resource out of the meshing of technology and human interactions).

  • When may I send and receive BUNs from the Cardano Blockchain?
    The current estimate is October 2021. Please refer to our detailed plan of future developments and implementation.
  • What is the total supply of BUNs?
    There is a fixed supply of 500,000,000 BUNs. Approximately 20% is used for member rewards and the remaining percentage is for sales to members. There are no reserves or team allocations.
  • Why create a DAO?
    The implementation of a DAO is an experimentation for an exit strategy while allowing members to control their own destiny to reflect what they want in a decentralized fashion. As the Oven distributes BUNs back to us for resale, we still maintain a commercial stake in the business as long as Loot NFT continues to engage members and generate activity.
  • Why do you need your own blockchain?
    As a permissioned blockchain, LNFTxHABN can provide high transactional throughput and fixed transaction pricing, without our members worrying about gas pricing and all of the complexity this entails. Validators on HABN burn tokens received during the validation exercise every 500,000 blocks to earn a stake in a pool made-up of fees received by HABN customers.
  • What are the pieces of the puzzle to create a link between LNFTxHABN and Cardano?

    This will depend predominantly on transaction frequency and value.

    Interactions such as whitelist invitee, re-listing fees, or payment to creators and resellers (e.g., non-exhaustive) are all activities where transaction fees can be entertained and makes for good candidates for being governed by Cardano smart contracts.

    However, the Battle Bidding process and parts of the Oven on the Cardano blockchain would be commercially prohibitive and could cause bloating; for this purpose we will keep using LNFTxHABN. While this makes for a good plan, practical realities of how we fit these pieces together may change to reflect the best possible structure at the time of implementation. This is described in our patent pending application.

  • Tell me more about the NFT tokenization process.

    All NFTs are tokenized on LNFTxHABN and remain under our custody. If a member requests to transfer an NFT out of our custody, we will burn that NFT (retire it from LNFTxHABN) and mint it on the member’s blockchain of choice (provided that blockhain route is offered by Loot NFT). We will provide all of the documentation for provenance purposes and it will be listed as “Burned” in the “Manifest” section of our website. Once the NFT is minted on the destination blockchain, we will then transfer it to that member’s provided public address. Note that if the NFT is linked to a physical creation, then we will request that the member take possession of the physical creation, at their cost, within 90 days from the time the NFT is burned on LNFTxHABN.

  • Do you have team member, advisor, and other third party BUN allocation?

    No.

  • Why a fixed supply of tokens and not inflationary?

    A fixed supply is critical. It automates member intakes, Battle Bidding gamification elements, removes purchase power advantage, etc. Simply put, the exclusive and gamified structure of our platform would not work without a fixed supply and Loot NFT would not exist; yes, it is that important.

Participation

  • What are the steps for members to participate?
    1. Anyone wanting to join must have their email addresses whitelisted to sign up. Members may either whitelist their own email addresses before 30 June 2021 23:59 UTC or have their email addresses whitelisted by a member after 10 July 2021.

    2. If you have a whitelisted email address, click “Sign Up” on our site. Immediately after the verification process, you will be met with a paywall. Follow the instructions to send USDC to buy BUNs and you will be able to log in. You will then see your BUNs credited in your account ready to use.

    3. Choose the item you want to bid on and click “Join Auction.” This requires you to pay the required BUN fee to join; this fee increases over time. Then you must tell us how many BUNs you would like to use on that particular auction. This action escrows the amount for you to bid (do not worry – you can clear the amount back to your account or add more to the escrow. You are in control).

    4. Bid by pressing the “BID NOW” button or set the “BID BOT.” You or the bid bot can only bid 1 BUN at a time and must wait for someone else to bid before bidding again. The bid bot is activated in the last 15 seconds of an auction. If no one else bids by the time the timer reaches 0:00, you win the NFT. If someone else bids in that time period, the timer resets back to 15 seconds.

    5. NFTs can be re-listed by members for auctions (denoted with an “R” on the auction card). These auctions only start once a reserve price is met. To join, you must pay a share of the reserve price as a joining fee.

      For example, if the reserve price is 300 BUNs and a minimum amount of 30 members is required, then a member’s share to join is 10 BUNs. Once 30 members have each contributed 10 BUNs, the auction reserve price is met and the auction starts. If the reserve price is not met, the auction is cancelled and all BUNs escrowed to that auction revert back to the relevant members’ accounts.

    6. If you win at an auction, the NFT will appear in your “My NFTs” section of our site; you can download it for display. Provided you fulfilled some pre-requisites, you can either re-list that NFT or transfer it off-site out of our custody. To resell an NFT means that you are giving up the right to own that NFT and any associated creations it embodies. NFTs sent off-site can’t be reintroduced to the Loot NFT ecosystem.

  • How do I invite someone to Loot NFT?

    On 10 July 2021, you will be able to whitelist email addresses of persons you would like to invite to become members of Loot NFT. Go to your Profile section on the Loot NFT website, enter the email address you would like to whitelist, and spend 1 BUN (currently). Note that there are no automated emails sent from the platform in this process. You will have to relay the information to your invitee that their email address has been whitelisted.

  • How does someone that has been invited join Loot NFT?

    The invitee should click “Sign Up” on the Loot NFT Website and enter their whitelisted email address. Our system then checks whether the referrer (person that invited the invitee) has at least 1 BUN in their account, then another check to ensure that Loot NFT has BUNs available for sale. If so, they then buy BUNs as the last step of the process to login. Note that no one (invitee or member) can login unless they have at least 1 BUN in their account or they own an NFT at that time, excluding burned or resold NFTs.

  • Is there a cap to BUNs a member’s account can have in their account?

    Yes, 50,000 BUNs.

    We may give degree holders (i.e., status level) a benefit that raise the maximum BUN cap per member for them from 50,000 BUNs by 10% (1st degree), 20% (2nd degree), 40% (3rd degree), 70% (4th degree), and 110% (5th degree).

  • What happens if I am due to receive more than the maximum allowable BUNs in my account?

    All excess BUNs above 50,000 BUNs are directed to the Oven for redistribution.

  • I am a member and I have spent all my BUNs. Can I log in?

    No one can access Loot NFT unless they have at least 1 BUN in their account or 1 NFT that they own at that time, which excludes burned or resold NFTs. For this reason, members should keep at least 1 BUN in their account at all times unless they own at least one NFT.

  • How many creations will you list for auction?

    Other than during the first month, we aim to list one NFT every day. Due to the Battle Bidding process, there is no end time for those NFTs to sell. This means that you may have several NFTs being auctioned off at the same time, known as overlapping.

    The Battle Bidding arena only accommodates 40 NFTs at any one time (20 first-time, [new] NFTs and 20 resales, although that proportion may vary depending on member participation). Before getting to the auction arena, all NFTs are listed in a first come, first served basis in the “Upcoming” section of the Loot NFT website.

  • How many auctions will you have at any one time?

    Over time, we anticipate up to 40 auctions running at any one time with more auctions queued in the “Upcoming” section waiting to go live on a first come, first served basis.

  • Can you explain the menu items “Upcoming” and “Loot Vault”?

    The “Upcoming” menu lists NFTs that are waiting in the queue to go to a live auction in the arena. This is a first come, first served (i.e., auctions go live on a first listed basis). If there are 40 live auctions, when one of these are completed, the next NFT in the queue will go live such that at any one time, there is a maximum of 40 auctions in the auction arena.

    The Loot Vault section of Loot NFT shows a list of all of the completed auctions.

  • Will you a keep a manifest of all creations on Loot NFT?

    Absolutely.

    Click the “Manifest” link on our site to see the status of each item listed. This tab shows the NFTs public addresses, whether the creation it embodies is physical, and if physical, where it is located, and the current owner’s username.

  • I won an NFT that is linked to a physical creation. Will I receive the physical creation?

    No.

    That creation is on loan to us until you decide to transfer that NFT off-platform. If you decide to transfer your NFT, you have 90 days to organize shipping, at your cost, and take delivery of it. We will send you an email with all pertinent details in this process. We will then remove that creation from our manifest.

    Important: If you do not take delivery of the item (or complete the shipping process) within 90 days, you will forfeit that physical creation and we may then donate it. Members should be aware that it costs us to manage the custody of each creation.

  • How do I relist an NFT I have won?

    In your “My NFT” tab, go to the “Untouched NFTs” section, enter your reserve price and the number of members you wish to contribute to that reserve price. You must have successfully completed your KYC (Know-Your-Customer) checks, have whitelisted one USDC public address you wish for us to send the proceeds to, and agreed to our terms. Our commission for a resale is 40% and all proceeds from the sale will be paid to your nominated USDC address.

    If you are not a holder of the free re-listing badge, there is a fee of 250 BUNs to relist. Press “Relist” and the item will be added to the “Upcoming” auctions list. At that time that NFT is on consignment to us to list for auction. This action cannot be reversed. If you do not achieve your reserve, the NFT will be returned to your “Untouched NFTs” section. Note that a re-listed item will have 170 hours to meet your reserve price.

  • Can I bid on an item that I have re-listed?

    No.

  • I do not want to re-list. Can you buy it from me and then you re-list it?

    Maybe, if we can agree on a price. Also, if you are thinking of transferring off-platform, consider selling to us first. Enter the price you would like to sell the NFT and we will contact you. However, we cannot guarantee we will buy it but, in any case, we will get in touch with you to discuss it.

  • What is the "Open Member Email Registration”?

    Loot NFT is an invite-only platform.

    The open member email registration period is the only time that anyone can whitelist their email addresses before 30 June 2021 to sign up.

    Anyone can sign up in Stages 1, 2, or 3 and receive early bird benefits based on when they whitelisted their email addresses. After 30 June 2021, all other people wanting to join must be invited (i.e., their email addresses must be whitelisted by a member).

  • What is the difference between “Whitelisting” and "Sign Up?”

    Anyone must first whitelist their email addresses prior to signing up. Another pre-requisite to signing up is to purchase at least 1 BUN pack (containing 25 BUNs).

  • What happens if all BUNs are sold by Loot NFT Co LLC?

    BUNs recirculate back to Loot NFT from the Oven every Sunday at 00:00 UTC. However, the number of BUNs we receive from the Oven depends on how active members are at spending them and whether an auction has concluded (BUNs from auctions are only sent to the Oven when they conclude).

    If we do not have any BUNs for sale, new members must wait until after the Oven distributes BUNs to us to complete the sign up process. Hence, the best period to sign up should be between 21 and 25 June 2021.

  • Can I combine all my NFTs into 1 NFT if I own all NFTs in a set?

    No.

  • When may I start inviting others to become members?

    After 10 July 2021 00:00 UTC.

  • During the whitelisting process, what happens if someone else whitelists my email?

    All sign-ups to Loot NFT send an email One-Time-Password (OTP) before signing up. As long as you have access to your email account, no one can complete the sign-up process on your behalf. You only enter your name, country, and password after you enter the correct OTP.

  • Are there any BUNs reserved for sale in each sign-up stage?

    No.

    However, on 20 June 2021, we may advise registrants of any maximum cap we impose on BUN purchases from 21 to 25 June 2021 so that a maximum of persons can sign up. Thereafter, BUNs are sold on a first come, first served basis depending on availability.

Payments & Fees

  • How much is a BUN?

    BUNs are sold in packs of 25 for 5 USDC (or ~US$0.20 each). In the future, this will transition to BUNs being sold for ADA (e.g., only, 1 pack for 5 ADA).

  • What is the currency in which members buy BUNs and receive payments?

    All transactions are conducted in USDC, a cryptographic token that is pegged to the US dollar. We sell BUNs for USDC and make transfers to creators, resellers, and Pioneer Badge members in USDC. This allows us to frictionlessly conduct commerce.

    Note: A Pioneer Badge is obtained by anyone signing up between 21 and 25 June 2021 and grants its owner (provided our conditions are met) 10% commission from all purchases of their invitees up until 31 December 2022. If you are in the US, you will be subject to receive an IRS Form1099. Only 500 Pioneer Badges are available on a first come first served basis (this cap doesn’t apply to the Loot NFT Genesis Army members who will receive Pioneer Badges if the sign up between 21 - 25 June 2021).

  • What are the current fees for BUN spends on the platform?

    Whitelisting an invitee’s email address: 1 BUN

    Whitelisting a public cryptographic address used to send NFTs or USDC: 10 BUNs

    Re-listing Auction Fee: 250 BUNs, unless member has a Free Re-Listing Badge

    Bid at battle bidding auction: 1 BUN each

    Auction Joining Fee: Starts at 5 BUNs to join, then 6 hours before the end of the original auction timer, that fee doubles. The fee then continues to double every 6 hours of extra time (if the timer resets every 15 seconds following a bid) up to approximately 78 hours, when the auction is locked to new bidders given that it will then cost more to join an auction than the 50,000 BUNs limit imposed on every account.

    Re-listing Joining Fee: Variable rate set by the owner of the NFT

  • Why use an internal BUN/USDC rate?

    Due to the BUN bonus and rewards (e.g., referral bonuses, and Oven rewards) the value of the BUNs within our ecosystem is less than the full price of a BUN we sell. This can result in auctions listings being overvalued ( e.g., actual BUN value is 0.05 USDC but we sell a BUN at 0.20 USDC; if an auction collects 100 BUNs, the value collected is 5 USDC, not 20 USDC). In the case we need to pay creators, they will be paid 2 USDC and not 8 USDC, otherwise we would be down 3 USDC (i.e., 8 to 5 USDC).

    Hence, we cannot value the BUN at the full price at which we sell them, but instead we need to value it based on an internal exchange rate. This is achieved by calculating the total amount we receive from the sale of BUNs divided by BUNs distributed in our ecosystem. The internal rate BUN/USDC is displayed publicly in the “Statistics” section of the Loot NFT website.

    Internal rate calculations are made at the end of each auction and are locked in that amount as the proceeds of the auction. The following are calculation considerations:

    1. We do not account for BUNs in the Oven as part of the calculation; otherwise this would depreciate the BUN/USDC rate.

    2. Over time, the net value of the internal BUN/USDC rate should tend to be a little less than 0.16 USDC (since 20% is returned as rewards (and there is lifetime member referral bonuses on an invitee’s first purchase) [i.e., ~20% of 0.20 USDC = 0.16 USDC]).

  • What is meant by the term paywall?

    The term paywall means that you cannot access a particular functionality unless you first pay to proceed. We use two main types of paywalls:

    1. At logging in, if a member does not have BUNs in their account, they will be directed to buy some before accessing Loot NFT;

    2. A member must pay for a seat to bid at any auction.

  • What are the different types of auction paywalls?

    There are two types of auction paywalls: a price to pay to join a first listed auction and. an amount escrowed to join an auction of a re-listed NFT.

    In the first type, all members must pay 5 BUNs (currently) to join an auction from the time it starts. When there are 6 hours left on the original auction clock, the price to join the auction doubles. Thereafter, the joining fee doubles every 6 hours of extra time (if the timer resets every 15 seconds following a bid) up until approximately 78 hours, when no one can join the auction (those currently bidding will carry on until the item is won by a member). This ensures each auction is seeded and penalizes latecomers.

    In the second type, there is a reserve price to meet before the auction moves forward. If the reserve is not met after 170 hours, the auction is removed, and bidders receive their escrowed BUNs intended for the auction. The reserve price is shared amongst multiple members (with a minimum of 30 members being required, and the reserve not being more than the amount previously obtained in the immediately preceding auction). Once members combine to contribute to an amount equal to the reserve price, the auction moves forward in Battle Bidding style for an initial auction time of 24 hours. Any members wanting to join after the auction has started must pay the member's share of the reserve price paid by all other members.

  • I have a Pioneer Badge. How do I get paid?

    Our system tracks all invitees that you have introduced to Loot NFT and you receive 10% commissions from their purchases (in USDC) up until 31 December 2022. The first commission period accrues until 25 July 2021, and will be paid at the end of July 2021. Thereafter, commissions accrue until the 25th of each month and will be paid at the end of that month.

    To receive commissions, you must pass our KYC checks, have whitelisted a USDC public address, and have agreed to our terms. If you reside in the US, you will receive an IRS Form 1099. All commissions are sent to your USDC address at the end of the month.

  • How do you calculate how much an auction item receives in USDC?

    We multiply our internal exchange rate for BUN/USDC at the end of an auction by the number of BUNs collected in that auction.

  • Can I sell my degrees?

    No. Once you achieve a degree, it stays with you for life.

  • Can I sell my badges?

    No.

Rewards

  • How are Oven rewards distributed back to members?

    Members receive rewards pro-rata their participation in auctions in the following two ways:

    1. Ten percent of the Oven goes to members based on how many bids they have spent on auctions from the time they joined, compared to all other members since the start of Loot NFT, and

    2. Another 10% of the Oven goes to members based on how many bids they have spent at auctions over the past 7 days, compared to all other members.

    Simply put, the Oven rewards long-term and recent auction participation. All Oven distributions are issued in whole numbers and any fractional numbers are placed back into the next Oven for distribution.

  • What are the rewards given to members other than Oven rewards?

    Members may earn badges which entitle them to special benefits on Loot NFT. For example, a Pioneer Badge (only available to members that sign up between 21 and 25 June 2021 and capped at 500 on a first come first served basis for non-Loot NFT Genesis Army members) allows them to earn USDC commissions from every purchase their invitees make in USDC up until 31 December 2022.

    To be eligible to receive these commissions, Pioneer Badge holders must complete our KYC process successfully. Other benefits include the following:

    1. a lifetime fee waiver for re-listing NFTs (currently at 250 BUNs)

    2. a referral bonus on the first purchase of an invitee (currently, 5 BUNs for each 25 BUNs purchased by an invitee) ending on 31 December 2022.

  • Will you show my name as an NFT owner if the work is displayed in a physical space?

    Absolutely.

    The username of the owner is displayed with the words “On loan from:” next to it. In some cases, at the request of the owner, we may display that owner’s name. Allow 72 hours for us to request the change of names in the case of NFT resales.

Know Your Customer, Contracts

  • Will you require KYC?

    We do not require KYC to log in, purchase, and spend BUNs.

    However, for any dealings involving payment to members in USDC (e.g., commissions for their referrals and auction proceeds for re-listing) and transfers of BUNs or NFTs out of our custody, you must have successfully passed the KYC checks.

    The KYC process goes live on Loot NFT on 10 July 2021, and USDC payments, re-listings, or NFT transfers will not be possible prior to that time.

  • Are there any additional conditions beyond KYC to re-list or get commissions?

    Yes, there are two conditions.

    First, you must whitelist your USDC public address (can be multiple), but choose one for us to pay you in USDC. We use the USDC address on file at the time of payment.

    Second, you must agree to our terms and conditions for that USDC payment to you.

  • Are there any additional conditions beyond KYC to transfer an NFT off-site?

    Yes.

    You must choose a blockchain as listed on Loot NFT and whitelist your recipient public address. This is the blockchain on which we will mint the NFT and the address to which that NFT is to be sent. The newly minted NFT will contain the particular details of transactions previously conducted on the LNFT blockchain for provenance.

  • Can members create multiple accounts?

    There is little benefit in creating multiple accounts (or BUN-farming from multiple accounts). It is against our rules and can lead to termination of membership. Members engaging in this practice will not be able to receive access to the full features of the platform, such as sending BUNs to their off-site wallets, receiving commissions, or transferring NFTs into their custody unless they pass our KYC checks.

  • What happens if I do not pass KYC?

    We deal with these cases on an individual and manual basis to ascertain your eligibility. In the event members breached our rules, their account may be suspended or terminated (in the centralized version of our platform). They will forfeit all their BUNs (which will be directed to the Oven) and their NFTs will be re-listed. Member sanctions may be severe if our terms are breached.

  • When can members complete the KYC process?

    Any time after 10 July 2021.

General Q&A

  • What is the vision and goal?

    The first is to propel the career of creators, known and unknown, no matter where they are in the world. We do this by offering another path (instead of the traditional marking, curating, critic, gallerists build up) to get recognized through highly engaging auctions, which indirectly values their work.

    Second, to create an engaging platform with value for our members where they receive amazing benefits for participating.

    Third, to hand over the governance and the interactions of the platform to a decentralized autonomous organization, whereby we exit normal operations (with some administrative functions entrusted to a foundation) but where we are still recognized for our work through DAO revenues based on how the platform is performing at the time.

  • What preventative measures are in place to stop low auction engagement?

    First, there is a joining fee to an auction (added to the auction tally); this cost increases over time dis-incentivizing people joining late. This seeds the auction early.

    Second, there are a relatively small number of NFTs; all are unique and offered in sets, which increases desirability.

    Third, members engaged in playing the game may be on the lookout to participate to complete their sets.

    Lastly, the re-listing feature may also bring value to a member that wants to sell an NFT previously obtained at auction.

  • What is D-Day?

    D-Day is a theoretical event where Loot NFT has no more BUNs to sell and the Oven has not yet redistributed BUNs to the Loot NFT ecosystem. As D-Day approaches, BUNs become more scarce and the last members that have BUNs (as long as they have joined an auction), are likely to win the NFTs.

    If all auctions are still in progress on the platform at that time, this could result in a cascade of auctions ending, filling up the Oven as they do so. However, since the Oven only distributes at 00:00 UTC on Sunday, there may be a situation where members have to wait until that time to participate again and Loot NFT has no BUNs to sell (it also means that no new members can sign up until that time).

  • Why are some dates marked “Est.” on the development roadmap?

    “Est.” means estimate. The creation of smart contracts must be approached very carefully and undergo significant testing. The interactions and feedback by members will inform us about our design which may be implemented at the time.

  • Do you anticipate auctions to take days on some items?

    Who knows? We will have the Guinness World Records on standby just in case.

  • Can you change your terms?

    We may update our terms and will provide reasonable notice to our members prior to doing so.

  • What happens if you go out of business?

    First, we hope this does not happen. But if it does, we will attempt to find a partner to sell to or run the business. Failing this, the following steps may be implemented:

    1. We will issue a press release through our social media accounts and website, requiring the owners of NFTs to take possession of same (transferring off-site), and allow a period of 90 days for this to be completed.

    2. After the 90-day period:

      1. any physical creations not picked will be donated.

      2. all remaining NFTs will be burned on the LNFT blockchain.

    3. After all expenses for the closure of the business have been deducted, any of the remaining USDC in Loot NFT’s custody will be distributed pro-rata to the members based on BUNs in their account on the 90th day of the notice to their whitelisted USDC public address. Members must have passed their KYC and background checks for this to happen. After a 90-day period, any remaining funds shall be donated to a blockchain foundation.

    4. Thereafter, the Loot NFT website will list the custodian of the physical creations if not claimed by the owner. The site will be maintained for 12 months before being retired.

  • What happens if you get hacked?

    No software system is 100% secure and we acknowledge that. We have taken as many precautions as would be expected from a professional in this industry. However, it is still a possibility. For the purposes of this section, we will consider the four hacking scenarios listed below, which are the most relevant and impactful. Our first step in each of these events will be to get the relevant authorities involved.

    1. Hack of our USDC accounts. In this event, the value for creators and resellers of NFTs will go down since the internal BUN/USDC rate will plummet. As the Oven redistributes to us, the BUN internal rate should go back up over time.

    2. Hack of BUNS. If BUNs are hacked in our wallet, the remaining BUNs will circle back to us for resale albeit at a slower rate.

    3. Hack of BUNs in the Oven. We will first patch and migrate BUNs sent to a new Oven. In the most extreme case, this can lead to interactions grinding to a halt. With a member’s co-operative we may, in that event, migrate to a newly issued BUN and convert the remaining old BUNs to new BUNs.

    4. Hack of NFTs. NFTs are reissued with the provenance, or past transactions, listed.

Advanced Q&As

  • Do you have a schedule for the listing of NFTs?

    Yes.

    We intend to list new NFTs for auction on a daily basis with a set end time. Auctions times cascade down, such that NFTs listed on Sunday will end the following Sunday (7 days), NFTs listed on Monday will end the following Sunday (6 days), NFTs listed on Tuesday will end the following Sunday (5 days), so on and so forth.

    Re-listed auctions (i.e., those NFTs that are re-listed for sale by members) can be listed at any time and will have 170 hours to achieve a reserve price. When a reserve is met, the battle bidding auction starts with a timer of 24 hours to allow all members to join in. The reserve is added to the auction receipt. If the auction does not get to the reserve, it is delisted. Any member can join in a re-listed auction at any time by paying the same share of the reserve price that prior members paid to join that auction.

  • What is the process to bid?

    First, members must pay a joining fee to bid on a new (first-time listed) NFT, or pledge BUNs to meet a member’s share of a reserve price for re-listed NFTs. If the reserve is not met (i.e., the auction does not go ahead), the pledged BUNs are returned to the member.

    Second, members must allocate an amount they are willing to spend on each auction. They can clear that amount at any time and the balance is returned to their account, or they can add more to it.

    Third, once members have allocated an amount they would like to bid for an auction, they can then set the bid bot or bid manually, or both. If the amount is entirely consumed, they will need to re-allocate more to continue bidding. This is good for members to control the amount they have allocated per auction.

    Lastly, members can bid on one or multiple auctions at the same time.

  • Do all bids get sent to the Oven automatically from biddings?

    No.

    BUNs for an auction only get credited to the Oven when the auction concludes. In the meantime, the Oven will accumulate BUNs spent for other services, such as whitelisting email addresses of invitees or of public cryptographic addresses, NFT re-listing fees, etc.

  • How long do we have to wait for a D-Day?

    D-Day is theoretical and dependent on several factors, such as how long an auction lasts, how many members are bidding in the last 15 seconds, how many NFTs are on auction, what the re-listing reserves are, how many BUNs are off-platform, or lost, or hodled, etc. Technically, our models show that it is possible in a 21-day period, but that is very unlikely.

  • In D-Day scenario, can members be locked out of auctions before the oven distributes?

    No.

    All of our listings end weekly following an Oven release. It means that members can still join an auction at 5 BUNs before the joining fee doubles (only in first-listing scenarios).

  • Have you capped your revenues?

    We have other avenues for growth, such as creating Loot NFT sub-sites on a country basis to help creators there; they could then gravitate to the Loot NFT site, much like the football World Cup which has different qualifying regions before getting to the World Cup. These sub-sites could use tokens with different tokenomics, but the same or similar approaches.

  • How do you stop members from storing BUNs off-site only to by-pass the 50,000 cap?

    A member’s cap is the sum of all BUNs they have sent off-site (since BUNs are blockchain assets) and their balance on Loot NFT (which includes amount allocated in live auctions). Hence, they are not be able to buy more from Loot NFT unless they use their BUNs on Loot NFT. In order to send BUNs off-site, they are also required to pass our KYC checks, which stops multiple accounts from being used to buy BUNs and consolidate off of Loot NFT.

  • Can a member buy BUNs at any time or is the cap of 50,000 BUNs a onetime lifetime cap?

    Members may buy BUNs at any time and the cap is a hard cap at any one time.

    For example, if John buys 50,000 BUNs and spends 1,000 BUNs in an auction, he will be able to purchase up to 1,000 BUNs.

    The following are important notes for BUN purchases:

    1. BUNs are sold in packs of 25, which means that if a member spends 1 BUN at an auction and wants to buy BUNs, they will not be able to do so. That member must make room for at least 1 pack.

    2. If a member has allocated BUNs to auctions or pledged to a re-listing, these BUNs are treated as if they had not left the account of that member (since they still have control of those BUNs).

    For example, John has 50,000 BUNs. He allocates 5,000 BUNs to an auction. His account balance shows 45,000 BUNs. He tries to purchase more BUNs. He cannot purchase more Buns until he returns the BUNs from the auction. For reserve escrows, these amounts are locked in and cannot be cancelled. It is only returned if the auction does not go ahead.

  • What to do when 50,000 BUNs were sent off-site and I cannot log back in?

    Send the BUNs back to Loot NFT.

    Each member has a public BUN address on Loot NFT. If you do not know your Loot NFT public BUN address, when you log in, and after the email OTP confirmation page, you will be presented automatically with your account’s public BUN address. You can then send BUNs to that address. Once the off-site BUNs are received, you can log in.

  • Can members send in BUNs from another non-whitelisted public BUN address to their account?

    Yes, but any amounts over their 50,000 BUN cap will be sent to the Oven for re-distribution to the Loot NFT ecosystem. Members must be mindful not to send more than the cap they are entitled to; otherwise, they will lose the additional amount.

  • If NFTs are added every day and there is a limited supply, does that mean that over time the remaining NFTs get valued less?

    We generally do not talk about the future value of NFTs as we do not want our words to be taken out of context, but we think that in this instance we can list certain aspects that may affect an NFTs value for general informational purposes.

    For fungible tokens valued in a pair to another, inflating one token in relation to the other generally means that the inflated one loses value. In our case, we are adding more NFTs while keeping BUNs fixed. This is more like valuing gold with respect to an inflationary US dollar, although even that is a stretch; but you get the idea!

    On Loot NFT, the following need to be considered:

    1. The arena has at a maximum of 20 first-listed NFTs and 20 re-listed NFTs at the same time (40 NFTs on auction); this proportion of first-time/re-listed NFTs may change depending on participation. All other items wait on a first come, first served basis in the “Upcoming” section of the Loot NFT website. Once a spot frees up in the auction arena, that next NFT goes on auction. This focuses the attention of the bidder only on a few items at any one time.

    2. Members that want to complete sets have to hold on to a number of NFTs, effectively temporarily taking them out of circulation (i.e., like an NFT staking). For example if a member has a 3 out of 5 set, they may want to get to the 5 out of 5 set to get the mystery gift.

    3. Some NFTs may attract more attention than others, such as if we have a custom car by a particular creator in a themed NFT set for mechanical objects.

    4. NFTs may not be sold by hodlers since NFTs may have value in themselves to those members.

    5. NFTs can be sent off-site. This reduces the amount of NFTs in the ecosystem and can balance out with the incoming NFTs such that certain NFTs may have more value off Loot NFT than on it to a member. This means that a fresh contingent of NFTs can take the spots of the older ones.

    6. The number of members on the Loot NFT is relevant to the bidding fervor at auction.

    7. In a decentralized ecosystem, we will transition to pricing the BUNs with a set amount of ADA (Cardano Native Token); for example, 1 pack for 5 ADA. We originally intended to launch by selling BUNs to ADA before replacing it with USDC for several practical reasons. In relative fiat terms, BUNs may fluctuate in the future with the price of ADA.

  • Are there any additional benefits to more BUNs out of the Oven to holding a degree?

    Maybe. We may give degree holders a benefit that raise the maximum BUN cap per member from 50,000 BUNs by 10% (1st degree), 20% (2nd degree), 40% (3rd degree), 70% (4th degree), and 110% (5th degree) to make room for the increase in rewards those members receive.