What are CROWN NFTs?

What are CROWN NFTs?

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The CROWN NFT is a particular type of Phantasma Smart NFT. It has been created as one of the multiple ways we reward our loyal supporters. Having been announced in December 2020, the CROWN NFT was retroactive all the way back to mainnet launch.

There are two important sides to the CROWN story – how is it earned, and what does it do?

A CROWN NFT is an infused NFT. This means that the CROWN NFT holds assets inside itself. Phantasma’s sustainable tokenomics allocates a 2% annual inflation to block producers, and 10% of this is diverted to the CROWN NFTs. In addition, 25% of the KCAL fee for every transaction on the Phantasma blockchain is allocated to the CROWN NFTs unless a dApp provider has specifically requested this portion of the fee to fund their operations.

What this means is that every CROWN NFT distributed contains both SOUL and KCAL. If you wish to access these infused assets, you must burn the CROWN NFT. Otherwise, the infused assets remain out of circulation, effectively lowering the circulating supply.

However, if you are considering burning your CROWNs, you may want to reconsider. The CROWN NFTs come with a special power: For every CROWN you have in your wallet, your rate of KCAL generation is increased by 5%. You can keep adding up to 20 CROWNs to your wallet and still enjoy this cumulative benefit. This means that in a single wallet, with 20 CROWNs, you will generate twice as much KCAL as you otherwise would have.

The CROWN NFT is a scarce resource, as such a powerful item should be. The only way to earn a CROWN is to stake a Soul Master (50,000 SOUL) for at least three consecutive months. The CROWN rewards are distributed every 90 days, starting from mainnet launch. This means that you need to stake a full such 90 day interval to earn a single CROWN.

Being an NFT on Phantasma, the CROWN NFT is of course also tradeable on GhostMarket. Thus, you can choose between burning it for the infused assets, selling it, or keeping it to generate extra KCAL!

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