We’re now in 2022, a year that promises to be very important for NFTs and the wider crypto market. Now that the word is out and the majority of people interested in the crypto space have heard about NFTs, it makes sense that we begin to see drastic improvements in the underlying technology. While improvements and alterations to Bitcoin’s initial technology have been plentiful and fruitful, the NFT ecosystem is a beast unto itself. As such, there hasn’t been a whole lot of technological developments in space (outside of NFT capabilities appearing on different networks). However, with dynamic NFTs this is about to change drastically.
What are Dynamic NFTs?
Despite massive popularity, NFTs of the past had a serious lack of utility. Developers would try to add utility by implementing things like airdrops for holders, exclusive access to a cat cafe, and even yacht parties (BAYC I’m looking at you). While this, of course, does add value to these NFTs it’s akin to trying to force a circle through a square shaped hole.
While standard NFTs are fairly simple, dynamic NFTs are able to interact with both on and off-chain data. This means that you could, for example, have an NFT that changes based on a factor like the weather. Obviously, this is a basic example but the possibilities are endless. You could have a NFT that evolves based on your level in a game, an NFT that changes or “matures” based on how many blocks have passed, or even an NFT that reacts to global news or project updates. This enables developers to implement a massively increased amount of utility and add features that would have previously been impossible. If the NFT market is here to stay, these developments are crucial for continued adoption.
What is Loopring?
Loopring is a layer-2 protocol on the Ethereum network. While this may sound confusing, when explained in simple terms it becomes much clearer. A layer-2 program allows transactions to be settled on their own network as opposed to on the main blockchain. For users of Loopring, this means avoiding the sizable transaction fees and wait times associated with the Ethereum blockchain. Considering the amount of dApps built upon Ethereum, it’s no surprise that loopring has been flying over the past few months, reaching highs of over $3 in November 2021.
Recently, it was announced that every degen’s favourite company, GameStop, had partnered with Loopring to create an NFT marketplace. This aligns with the upcoming release of the Loopheads NFTs. While it’s impossible to predict exactly the impact this partnership will have on the price of Loopring, it’s apparent that it’ll likely be positive. Combine this with a possible recovery for ETH, BTC, and the wider crypto market and the potential for Loop Ring’s token LRC to take flight is undeniable.
If you’re an avid user of the Loopring platform, then the chances are that you’ve heard about the airdrop, however, if you just hold the LRC token there’s a good possibility that you may have missed the announcement. As we stated above, Loopring and GameStop have partnered up to release a NFT marketplace and alongside it, a series of dynamic NFTs called Loopheads.
These Loopheads can have up to 25 variations, with them changing based on the current price of $LRC. You might be wondering how expensive this collection will be, however, it’ll be completely free! The Loopheads will be distributed exclusively through airdrops for users of the Loopring platform.
There will initially be 1000 NFTs released, but this number is set to increase in increments of 1000 until there are 10,000 total Loopheads in circulation. The requirements to be eligible for these airdrops are set to change but for now, you’ll need to have used the “direct-to-Loopring” on-ramp between the dates of December 21st 2021 and January 30th 2022. The 300 top addresses (by volume) will each receive 1 Loophead, with a further 670 being distributed to random, eligible addresses (seemingly leaving 30 for devs or marketing). There will be a further 9 airdrops taking place over the course of 2022, however, the eligibility requirements for those have yet to be released – once announced this article will be updated.
While they are very similar, dynamic NFTs are able to interact with both on and off-chain data, allowing them to change based on a wide range of variables.
Luckily for us, they’re free! All you need to do is use the direct-to-Loopring on-ramp by the 30th January 2022.
Loopring is a layer-2 Ethereum-based program