NFT's Darkest Hour: The "Wealthiest" Become the "Beneficiaries" - Analyzing the Narrative Conflict of the Latest Meme $NOVA
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With deflationary measures and the concept of UBI (Universal Basic Income), Nova aims to provide economic security and build a strong community based on shared values and consensus.
Popular culture/memes are one of the most important components of Web 2.0. The cryptographic technology brought by blockchain has made the monetization of popular culture/memes possible.
The prototype of Dogecoin comes from a Shiba Inu named Kabosu. And $Pepe comes from a common meme in our daily lives - Sad Frog.
What's even more interesting is that some memecoins have built a native Web3 memecoin based on the memecoins born from Web2 popular culture. $AIDOGE is a representative example.
The $AIDOGE model involves a token airdrop to all addresses eligible for $ARB airdrops, along with an added token transaction tax. A portion of the tax is used to purchase $ARB, which will be rewarded to users as LP rewards and token buyers. $AIDOGE creates a native Web3 meme through DeFi.
Just as $AIDOGE emerged from the combination of AI and memes, Nova, deployed on Ethereum, also emerged from the combination of AI and Pepe. PePe has risen 375,000 x in just 21 days, with the chain monitoring an address that bought $250 of PePe, which turned into $1.8 million, and Nova has emerged with the hope of continuing this miraculous wealth creation performance.
$NOVA gameplay: UBI and the most "ironic" economic security
The smart contract code for Nova is written by ChatGPT and will be officially released on July 7. The artwork on its official website resembles characters commonly seen in American animated series but with exaggerated features. The characters are portrayed with green colors and wide eyes, reminiscent of users anxiously waiting in a bear market.
After the launch, 95% of $NOVA will be allocated to liquidity, while the remaining 5% of $NOVA will be used for the development of the subsequent NFT ecosystem. The total supply of $NOVA is 1 quadrillion.
Unlike most purely emotion-based memecoins, Nova is more like a social experiment, introducing a concept called UBI (Universal Basic Income) in its token model design.
UBI, Unconditional Basic Income, is a concept that entails providing a certain amount of money on a regular basis to every citizen or member of a society, without any conditions, qualifications, or means testing. This money is distributed by the government or organized groups to meet the basic living needs of individuals, including food, housing, education, healthcare, utilities, and other essential expenses. The goal is to ensure economic security and fulfill basic human rights.
UBI has been advocated by individuals such as Elon Musk and Bill Gates since the outbreak of the COVID-19 pandemic in 2020. Recently, Sam Altman, the founder of OpenAI, has also put forward the idea that Universal Basic Income (UBI) is a solution to address the future issue of widespread job displacement. WorldCoin represents this concept. Altman believes that when AI replaces a significant number of jobs, lack of work and income should not pose a challenge to individual survival. Therefore, his idea is to provide everyone with money to guarantee their basic needs. This theory has some economic basis and can potentially free up people's time for living and creativity.
However, the question remains: where does the money come from?
Altman predicts that in the next 10 years, companies in the entire AI industry will earn enough money to the extent that a portion of it can be distributed to everyone. He conservatively estimates that it would be possible to provide $13,500 annually to 250 million people.
In order to ensure that everyone worldwide can receive this money equally, Altman chooses to utilize blockchain technology and create a virtual currency called "WorldCoin." He believes that by having everyone join this "WorldCoin" system and distributing money through it, universal basic income can be achieved.
In the context of Web3, it means distributing the protocol treasury equally among all token holders.
So, how does Nova accomplish this?
The contract for $NOVA introduces a 9% tax on sales (with 0% tax on purchases), of which 3% is automatically used to purchase ETH and distributed among the holders of the top 30 blue-chip NFTs. In the traditional world, relief funds are typically allocated to those in need. However, allocating 1/3 of the sales tax to the holders of these top 30 blue-chip NFTs demonstrates Nova's concern for the current state of the collapsing NFT world.
In order to "assist" those who have suffered significant losses in recent NFT events such as Azuki and BAYC, $NOVA has ultimately decided to distribute the benefits of the sales tax to them. At the same time, this appears to be a kind of ironic twist, as it makes those who did not actually need "relief" become recipients of it, turning $NOVA into an economic safety net for anyone.
It must be said that during the nearly two-year bear market of the NFT market, these once highly regarded figures and whales in the cryptocurrency community did indeed suffer the most severe losses. Eligible holders can regularly visit the $NOVA website to claim relief funds.
Of the remaining 6%, 3% will be used for team marketing expenses, while the other 3% will be added to the liquidity pool to achieve self-sustaining liquidity growth.
Moreover, $NOVA incorporates token burning into its design to achieve deflationary measures. The initial price of $NOVA token is $0.000000001, and whenever the price of $NOVA increases tenfold, the system automatically burns 1% of the tokens.
In essence, Nova is conducting a social experiment of digital communism through cryptocurrency technology. It resembles the popular (3,3) concept in Web3, where as long as consensus is maintained, the combination of price growth and deflation forms a positive feedback loop, driving the formation of a digital consensus civilization.
Humanitarian consensus in the NFT market collapse
In addition to introducing new mechanisms, a compelling narrative and storytelling opportunities are equally crucial for meme tokens.
The NFT market has been on a downhill trend this year. The underlying reason is the increasing scarcity of on-chain liquidity caused by the US interest rate hike, resulting in a more player-versus-player (PVP) environment. As the furthest end of the asset side, NFT liquidity has gradually been diluted after a prolonged interest rate cycle, and the emergence of Blur has accelerated this process. As the tide recedes, only the price of the NFT collection Azuki remains strong, even experiencing an upward trend.
Another important factor supporting the confidence of the Azuki community is the offline party scheduled that was held in Las Vegas on June 23rd. Prior to the event, rumors circulated about potential major announcements. However, the release of Azuki Elmentals did not meet expectations, leading to a significant departure of Azuki OG holders. As a result, the floor price of Azuki dropped from an average of 16E-17E before the party to the current 5E-6E.
The collapse of Azuki is like ripping off the last veil of the NFT market. Following the collapse of Azuki, blue-chip NFTs have generally experienced a decline. Currently, it can be described as the darkest moment for the NFT market. However, for the technology of NFTs, we firmly believe that it will receive broader adoption in the future.
Unlike other meme tokens that focus on NFT rights protection concepts, $NOVA demonstrates maximum humanitarian care for holders who have been affected by the downturn of blue-chip NFTs through its UBI mechanism. This narrative is ongoing. During the low period of the NFT market, Nova can provide subsidies to those who persist in holding blue-chip NFTs through the sales tax. And when the NFT market recovers, Nova may once again accompany more NFT holders on their journey to new heights.
To ensure fair and transparent distribution of incentives, Nova will conduct a whitelist verification process, aiming to ensure that every recipient of "relief funds" is a genuine blue-chip NFT holder. This verification process ensures that the fees generated by $NOVA traders are directed to those who truly have a need. However, this is just the first step. In Nova's narrative, it will further encourage equal participation of ecosystem contributors in the community decision-making process to foster community growth and progress.
It can be foreseen that sustainable meme narratives, the UBI mechanism, and a fair and transparent community environment will provide strong momentum for the growth of $NOVA.
$NOVA doesn't limit itself to being just a meme token on Ethereum. It aspires to stand firmly by the side of all those in need of assistance, accompanying them on their journey from the depths to the peak, through an innovative social experiment.
Moreover, Nova aims to build a strong community within the crypto utopia through this social experiment. The value of $NOVA is entirely determined by this community, and the consensus within the community is the value of $NOVA.