The Floor Protocol is pioneering a new approach in the NFT finance sector by automating the acquisition of undervalued NFTs from selected collections and utilizing these assets within the decentralized finance (DeFi) landscape to generate yield. This system reinvests the generated yield back into the protocol, enabling progressively larger purchases week by week.
FLOOR Governance Token
Central to this ecosystem is the FLOOR token, which grants holders the power to steer the protocol's direction. This governance is executed through a structured bi-weekly voting process, where token holders select which NFT collections should be targeted next. Only collections that have passed an initial voting phase qualify for these critical sweeps.
Floor Wars: A Competitive Voting Arena
The voting process ignites a competitive environment known as the Floor Wars, which includes two primary competitions: the Collection War and the Sweep War. Triumph in the Collection War means that an NFT collection will be consistently purchased by the protocol and will benefit from:
- Sustained purchasing activity that bolsters the market value of the collection.
- Integration with DeFi products, which enhances the utility of the NFTs.
- Immediate liquidity provision through platforms like NFTx, which allows for easier asset trading.
Moreover, a secondary market has developed where FLOOR holders can monetize their votes, providing an additional yield opportunity.
Treasury Management and Future Plans
The DAO leverages its treasury to invest in NFT-Fi via platforms such as NFTX and explores new, potentially higher-risk protocols through its sub-DAO structures. This strategy not only boosts the protocol’s yield but also amplifies the stakes and value within the Floor Wars.
With the rollout of Version 2, the DAO plans to broaden its scope by developing novel NFT-Fi products aimed at generating alternative Ethereum (ETH) sources. This expansion is designed to accelerate the growth of the DAO’s treasury and invigorate the weekly Floor Wars, creating a vigorous, self-perpetuating ecosystem that enhances both the governance influence and economic benefits for FLOOR token holders.
