Very Nifty

Introduction to Very Nifty

Very Nifty, developed under the Muse DAO banner (@NiftyMuseum on Twitter), is a pioneering experiment in the NFT gaming and trading ecosystem. Emerging from the creative minds at VeryNifty, it blends interactive gameplay with decentralized finance (DeFi) principles to breathe new life into NFTs. Initially launched as a game where players wrap NFTs to mine $MUSE tokens, it has evolved into a broader platform, notably through its NFT20 protocol—a decentralized exchange (DEX) for tokenizing NFTs into tradable ERC20 derivatives. Very Nifty aims to solve the NFT liquidity crisis, offering a dynamic environment for collectors, creators, and investors.

Game Type: A Hybrid NFT Game and Trading Platform

Very Nifty is a hybrid NFT-based game and utility platform, straddling the line between interactive gaming and a functional DEX. Its original incarnation, "The Gallery," was a play-to-earn (P2E) game where players wrapped NFTs into vNFTs (Very Nifty NFTs) to mine $MUSE tokens and compete on leaderboards. Over time, it expanded into NFT20, a permissionless protocol addressing the illiquidity of NFTs—think CryptoKitties’ $23,000 weekly sales in 2020, where only 5.8% exceeded $100 (source: NonFungible.com). Unlike traditional NFT games focused on battles or racing, Very Nifty prioritizes economic mechanics, making it a unique blend of strategy, speculation, and community-driven innovation.

Token Economy

$MUSE Token and ERC20 Derivatives

At the heart of Very Nifty’s economy is the $MUSE token, an ERC20 cryptocurrency minted by players in Season 1 of The Gallery (now ended) and repurposed for broader utility. In its gaming phase, vNFTs mined $MUSE daily, with yields tied to leaderboard rankings—higher levels meant more tokens. Today, $MUSE powers the NFT20 ecosystem, where users tokenize NFTs into ERC20 derivatives (e.g., 100 $KITTY tokens per CryptoKitty). These tokens are tradable on DEXs like Uniswap, providing instant liquidity. The system burns $MUSE for certain actions (e.g., wrapping NFTs), creating deflationary pressure—check market stats on CoinMarketCap.

The NFT20 protocol extends this by pooling NFTs, averaging their value across a project. This counters the historical trend where most NFTs lose value post-hype, enabling investors to gain exposure without picking individual items. X posts from @NiftyMuseum highlight this evolution, like this update on NFT20’s growth (placeholder; replace with real tweet if available).

Mechanisms and Gameplay

Core Mechanics: Wrapping, Pooling, and Auctions

Very Nifty’s gameplay has two phases: the original Gallery game and the current NFT20 DEX. In The Gallery, players wrapped NFTs into vNFTs, feeding them gems (bought with $MUSE) every 72 hours to keep them alive and mining. Failure to do so led to "death," halting rewards until burned by another player. NFT20 shifts focus to liquidity: deposit an NFT (e.g., a Doki Doki Gachapon) into its pool (e.g., DokiDoki Finance), and receive 100 ERC20 tokens. No pool? Create one via NFT20’s pool creation guide. High-value NFTs can opt for Dutch auctions on the asset page for better token payouts.

Withdrawal is unique: spend 100 tokens to claim any NFT from the pool, turning NFT20 into a swapping hub. Project owners can enhance trading by supporting pools—see the project owner guide. Early pools often saw low-value NFTs, setting a baseline price via OpenSea-Uniswap arbitrage.

Gameplay Examples

Example 1: Linda can’t sell her CryptoKitty. She deposits it into the NFT20 CryptoKitty pool, gets 100 $KITTY tokens, and trades them on Uniswap or stakes them for fees.

Example 2: Katherine’s Gen 0 CryptoKitty is premium. She launches a Dutch auction on NFT20, letting the market bid in $KITTY tokens, cancellable if bids disappoint.

Example 3: Enea swaps his Gen 0 CryptoKitty for 100 $KITTY tokens, then uses them to snag a Gen 1 Kitty he prefers from the pool.

Use Cases

For NFT Holders

Collectors deposit NFTs for instant liquidity, trading ERC20 tokens instead of waiting for buyers. It’s also a swapping paradise—volume ensures fair pricing for acquiring new NFTs.

For NFT Creators

Developers can seed pools, boosting project tradability. A liquid pool simplifies sales, attracts newcomers, and incentivizes liquidity provision—a strategic move for NFT ventures.

For NFT Investors

Investors speculate on collections via ERC20 tokens, bypassing the hassle of individual NFT selection. This addresses a key NFT investing challenge: broad price exposure without pinpointing assets.

Why Very Nifty Stands Out

Very Nifty transcends typical NFT games by merging P2E roots with a robust DEX. Its NFT20 protocol tackles illiquidity head-on, creating a secondary market where NFTs thrive as tradable assets. From The Gallery’s experimental vNFT mining to NFT20’s swapping and auction mechanics, it fosters a vibrant ecosystem for all NFT stakeholders—backed by a community-driven Muse DAO vision.