GOO: Aligning NFT Ownership with Fungible Token Emissions

Summary

Gradual Ownership Optimization (GOO) is an issuance mechanism for ecosystems where NFTs generate a fungible token. It aims to keep token and NFT ownership aligned by making each NFT’s emission rate depend on the square root of the tokens already held in its associated account tank. Emissions compound over time, and users can add or remove tokens from the tank.

The paper derives an optimal distribution of tokens across an owner’s NFTs: allocate tokens in proportion to each NFT’s emission multiplier. Under that allocation, multiple NFTs produce at the combined rate represented by their summed multipliers, and the allocation remains balanced as emissions accrue. This structure gives NFT holders an incentive to keep token holdings in proportion to their NFT capacity. The document presents mathematical reasoning rather than market performance evidence. Its alignment claims depend on assumptions about continued NFT multipliers and other system mechanics; the approach is designed for tokenized NFT economies, not as a general trading strategy.

Key ideas

• GOO makes NFT token emissions increase with the square root of tokens held in the associated tank.
• The mechanism compounds issuance over time and allows users to change tank balances.
• Optimal allocation distributes tokens among NFTs in proportion to their emission multipliers.
• The combined output of multiple NFTs corresponds to their summed multipliers when balances are optimized.
• The alignment incentive depends on system conditions, including whether total NFT emission capacity stays stable.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.