Ether.fan Introduces the First NFT Collection Backed by Staked ETHSponsored
Only 1,000 NFTs will be eligible for minting in the first series drop on July 11th.
By: Ether.Fi •Sponsored
Here’s how it works:
- Users stake their ETH by minting a non-fungible token (NFT) with a minimum deposit of 0.1 ETH.
- Minting = staking. Wallets enrolled in ether.fi’s Early Adopters Program (EAP) mint for free on ether.fan.
- EAP users also get assigned a membership status to earn higher rewards.
- The EAP closes on July 10th, so make sure you register!
- All staked ETH contributes to decentralization and supports Operation Solo Staker.
- Users can burn their NFT at any time and their ETH will be returned to their wallet.
The current ecosystem
Ethereum has a staking problem. A handful of providers control the lion’s share of the 21 million ETH that is staked on the network. Staking deposits have steadily increased ever since the beacon chain launched in late 2020, yet depositors gravitate to the same few players that monopolize the market.
We believe that for Ethereum to be credibly neutral and resilient, it needs to become more decentralized. Part of this means having multiple staking protocols and solo stakers responsible for staking ETH. Targets for hacks, single points of failure and denial of service (DOS) attacks, threaten Ethereum’s security and are just a few reasons why too much power placed in the hands of a small group of providers could cause incalculable damage. Sadly, investors are the ones who ultimately pay the price.
Decentralization and self-custody are at the heart of what we do. We are proud to be the first non-custodial, decentralized liquid staking protocol (LSP) that allows users to have control over their keys. With ether.fan, it’s important that we differentiate ourselves from other LSPs. Our goal was to come up with a unique way for users to generate yield, help secure the network and earn additional staking rewards; something we confidently feel we achieved.
What makes ether.fan different from other staking solutions?
Ether.fan is the first NFT collection backed by staked ETH. From our perspective, minting is staking. Anyone who deposits a minimum amount of 0.1 ETH in the ether.fi protocol can mint an NFT “fan” that represents their staked ETH deposit. This instantly provides the NFT with meaningful value and utility beyond price speculation.
Every new deposit mints a new fan, and users can hold as many fans as they’d like. Think of them analogous to trading cards. They are collectables that give users access to exclusive events at all major Ethereum conferences, and a chance to show off your commitment to decentralization with a fancy new profile picture for Discord and Crypto Twitter.
By opting into the ether.fan loyalty program, users can earn points that allow them to move up in membership status (based on how long they stake) and can receive a higher percentage of protocol revenue. The program consists of four membership tiers in ascending order: Bronze, Silver, Gold and Platinum. Every fan initially starts at the Bronze membership tier and over time progresses to Platinum.
Different NFT character traits & flair
Traits makeup a fan character’s specific attributes, such as eyes, hair, skin as well as intangible traits like charisma, strength and agility. Some traits are rarer than others, and together they give a character its unique personality and identity. Traits are also randomly determined at minting time. Each fan has an overall score that factors in the rarity of the individual traits.
Flair is deterministic and depends on how much ETH is staked by a user. There are specific variants and deposit amounts that make up both traits and flair. You can read more about this in our ether.fan litepaper.
How to properly value an NFT fan
The floor price of a fan NFT will always be equivalent to how much staked ETH it represents. For example, if a user deposits 10 ETH and mints a fan NFT, that NFT will be worth 10 ETH — and not a Gwei less. Factoring in unique character traits and a user’s membership status, it’s possible the price of an NFT will appreciate and be bought or sold for more than what was deposited.
Staked ETH withdrawals & fan upgrades
Staked ETH can be withdrawn from the ether.fi protocol by the fan owner at any time. If they withdraw more than 50% of ETH that is deposited, including staking rewards, their fan NFT will automatically be burned. The same goes if a fan NFT is sold, the new owner can burn the NFT and withdraw the full deposit. If the NFT owner chooses to partially withdraw ETH (less than 50% of the deposit), their flair and membership status will be impacted.
Conversely, ether.fans might decide to upgrade their NFTs by depositing more ETH into the ether.fi protocol. An upgrade can improve flair and boost intangible character traits; however, we believe the best approach is to simply mint a new fan. Over time as new ether.fan features are released, it will be valuable to have multiple fan NFTs to participate in a variety of games and activities.
When we launched Operation Solo Staker in April 2023, our mission was to empower people in different parts of the world to operate validators on behalf of the network. Along with our partners Obol Network, Dappnode, and AVADO, we gave successful candidates the hardware and technical guidance to set up and run nodes.
All ETH that is staked via ether.fan is allocated to these node operators. Helping Ethereum become less concentrated and more diversified has always been at the core of what we do. In addition to supporting the wider ecosystem, we will never sacrifice the non-custodial nature of the ether.fi protocol and believe all stakers must always maintain control of their ETH. Remember: Not your keys, not your coins.
What’s next for ether.fans and ether.fi
When we started ether.fi, we made it a priority to uphold our commitment to launching projects and initiatives that support Ethereum development while never compromising when it comes to decentralization.
Ether.fan was designed to encourage users to support solo staking and help secure the network by staking their ETH. In return, they receive proof of their participation by minting a unique NFT and a chance to earn additional rewards on top of that. Fostering a healthy and fair ecosystem is essential, which is why all the rewards from ether.fan are paid out to the stakers, solo node operators, and ether.fi interns.
We are just getting started and can't wait to introduce new incentives for ether.fans in the months ahead, including a potential governance role in an ether.fi DAO. Building out ether.fi is a community-driven, grassroots effort and we couldn’t do it without our supporters. We are very much in it for the long haul and believe in the industry’s potential to stay resilient.
To stay up-to-date with the latest ether.fan developments, make sure you follow us on Twitter and join our Discord server.