What happened to the once-popular Loot-based NFT?

Loot was born one year. The NFT hype is over, but the “Lootverse” hopes remain.

The list of fantasy gear sparked market booms (and busts), but also sparked the imagination of builders. Games and media inspired by “loot” are coming soon – and the launch of “loot 2” NFTs could accelerate growth.

What happened to the once-popular Loot-based NFT?

From Loot (left) to HyperLoot, the “Lootverse Loot universe” is growing.

Everything starts with a tweet.

Dom Hofmann, the creator of the video app Vine, is well known in the tech world for posting a mint message of a free Ethereum NFT with only white text on a black background. Loot (for Adventurers) includes tokenized “bags” of 8,000 fantasy weapons and items; “random adventurer gear,” in Hofmann’s words. It was cast in a few hours.

To some, this represented the absurdity of the NFT craze. Who would spend ETH on gas to mint something like this? – Gas fees can soar into the hundreds or thousands of dollars. But for others, Loot is a revolutionary advance: an open-source skeleton of bottom-up, community-driven intellectual property, where user-owned games and media mirror and reinforce each other.

The hype will skyrocket, but it won’t last. While the average selling price of Loot NFTs soared to around $84,000 above 21ETH at the time, the speculative frenzy quickly died down. Prices fell, trading volumes slowed, and in the weeks following its launch, the distractions quieted down. But Loot’s creative spark is real.

A small community of creators continues to use NFTs as “scaffolding” to inspire a range of games and more innovation. After a year of hysteria, the builders of “Lootverse” spoke to the press about building after the hype failed, chatting about why they believe this is the start of a creative revolution, and how to speed up “Loot 2.”

Paradigm shift

Hofmann co-founded Vine and other tech startups before joining Web3. He launched the NFT project Blitmap, co-founded Nouns, and is now building an on-chain game with Sup. But as it turns out, Loot is a unique feeling.

It was an experiment, and that’s what he did with Loot. Aside from the Ethereum network’s own gas fee — a mandatory transaction fee paid to the network — he doesn’t charge any fees to mint one of the 7,777 publicly available NFTs (the other 223 are reserved for Hofmann), nor does he charge any fees to mint one of the 7,777 publicly available NFTs Additional creator’s royalties on secondary sales. Hofmann recently told the media that asking for money or expecting royalties for such a risky project “doesn’t feel right.”

What happened to the once-popular Loot-based NFT?

Also, NFTs can only be minted directly from the smart contracts themselves — the code that executes collective instructions and powers NFTs and decentralized applications — making it less accessible to casual users and newcomers to cryptocurrencies. It’s a deliberate friction, he said, designed to attract experienced users, or those willing to break through barriers.

“These decisions were made to reinforce the project’s bottom-up drive and consensus strengthening of community spirit,” Hofmann said .

The loot is kept as simple as possible so that others can build on them what they want. Each NFT contains a simple Dungeons & Dragons-style list of items. For example, Bronze Ring or Skill +1 “Grim Shout”, Crypt Wand. There are no visual components or listed statistics. “Both of these things are intentionally omitted,” Hofmann tweeted.

While Loot’s unclear listing left some scratching their heads, many Web3 enthusiasts held their breath to praise its potential as a composable, blockchain-powered baseline for future fantasy games and media. What if Loot’s bag could cause characters, worlds and stories to all start from the same seed and grow together in time?

Loot has no principals, and no company makes decisions unilaterally over IP. In other words, there are no gatekeepers. It fits perfectly into the vibe of a permissionless cryptocurrency; a public good for collaborators to use as a narrative starting point. “Please feel free to use Loot in any way,” the website reads.

Software engineer Thanakron Tandavas called it a “paradigm shift in the NFT space” at launch , praising its bottom-up design that encourages community-led construction. PartyBid creator John Palmer likened its influence to NFT icon CryptoPunks, saying, “There was Loot before, now there is After Loot.” Even Ethereum creator Vitalik Buterin praised Loot’s open approach.

What happened to the once-popular Loot-based NFT?

The creators of Web3 took the cue. Within days, people were sharing their own artwork around Loot, along with guilds, music, legends, companion animals, and more. SyndicateDAO co-founder Will Papper even launched an Adventure Token (AGLD) for the ecosystem and let Loot holders claim 10,000 tokens — at its peak, each NFT bag was worth $77,000.

This all helped fuel a brief but explosive market boom around NFTs, which ended up generating about $280 million worth of secondary trading volume so far, according to CryptoSlam. In October last year, one NFT bag was sold for over $1.4 million in ETH. Derivatives and knockoffs followed. The Loot revolution seems to be off to a quick start.

boom and bust

But the hype didn’t last long. Last fall, the price of Loot on the secondary market dropped rapidly as the NFT market itself cooled amid the falling value of Ethereum. According to CryptoSlam, demand has collapsed by 95% from a trading volume of $221 million in September 2021 to below $12 million in October.

For those who spend tens of thousands of dollars on a Loot NFT, at a fraction of the price, it can be difficult to find a taker. Some speculators hoping to profit from a quick turnaround were instead undermined by Loot’s brief moment of shine in the NFT spotlight. Today, Loot’s floor price is probably the cheapest NFT on the market — just 0.93 ETH, or less than $1,600.

Not just individual investors. Kyle Samani, managing partner of investment firm Multicoin Capital, boasted on Twitter that he bought an “8-figure Loot” in September 2021, adding a cheeky “AMA” to his tweet, “Ask me any questions”. This is Multicoin’s first NFT investment, and Samani justifies his investment by saying Loot is “the first investable cryptocurrency-native game.”

A few months later, someone asked how that investment turned out. Samani acknowledged that it was “95% down,” but added: “Be willing to take the risk of losing 100%, it’s very important to our long-term success.” Multicoin Capital declined to comment for this story.

What happened to the once-popular Loot-based NFT?

Ultimately, rapid boom and bust speculative cycles cast a shadow over the Loot project. The excitement over open source, composable is largely overshadowed by the bizarre amounts some people are paying for NFTs, and when Loot’s market cap evaporates, some buyers think they’ve lost money.

Hofmann himself has never promised NFT buyers anything. However, given the hype cycle, expectations are high. Where the hell is a Loot-based game, some people have asked out loud. Creative projects can take a considerable amount of time to execute, but this is not in line with the fast-moving NFT space and impatient investors’ expectations for quick returns.

Hofmann told the outlet he was reflecting on the moment: “The hype has a role, it starts to reinforce itself and find itself outside the core concepts and the actual work being done, timelines and expectations can be distorted, which can cause Some noise and friction.”

Some of the early adopters of Loot’s Web3-native promise continued to build after the hype faded. However, the perception that Loot was a failed project created challenges to bring in new collaborators and get their expansion and project off the ground.

Threepwave, creator of the Loot dungeon map project Crypts & Caverns and developer of the Lootverse game Realms, said: “Loot became incredibly popular and then unbelievably unpopular, some of my friends They said, ‘What are you doing? You’re crazy.’ The hacking thing cost me a lot of money. It left a bad reputation among people.”

LordOfAFew, founder of Pseudonym Realms, cites Loot’s “boom and bust cycle” and admits that since its launch last year, fewer creators have entered the space. However, he said that despite falling NFT prices and less attention, many builders persevered. “It wasn’t scary for them at all,” he said.

Enter the Lootverse

A year later, we’re starting to see significant progress in the game and story initiatives born out of Loot’s opening. Some are built on top of the original Ethereum NFTs and interact directly with them, while others are inspired but use their own NFTs. The creators refer to it collectively as the Lootverse.

“What’s happening inside Loot is a bunch of builders working together, experimenting with the rough edges that a blockchain could have, and building these composable ‘building blocks’ that fit together in a fun way,” explained the pseudonym Timshel. is the co-creator of the Loot-based genesis project and runs the Loot Foundation website to encourage further construction.

What happened to the once-popular Loot-based NFT?

What happened to the once-popular Loot-based NFT?

In addition to initial experimental spinoffs from various creators, Timshel and fellow builders LootHero and Peter Watts discovered a hidden classification and rating system in Loot’s smart contract code data that could develop a more consistent lore around bags.

This led to the creation of Genesis Loot – said to be community-driven bags held by Loot’s legendary early adventurers, as well as a lore development kit that provides guidelines that builders can utilize if they so desire. Meanwhile, the Lootverse NFT project Banners claims to provide a “social and political layer of Loot.”

Crypts & Caverns are a key piece of the on-chain Lootverse infrastructure, providing builders with dungeon maps to incorporate into games and applications, potentially saving a time-intensive step. Threepwave told the outlet: “Now you’re at least as far as making a decent dungeon crawler or exploration game.”

One of those games that makes use of maps is Loot MMO, a glossy-looking fantasy RPG that runs on Unreal Engine through Manticore Games’ core platform — the same as many of today’s big games. The game leverages player-owned loot NFTs, including original bags, more loot expansion bags, and various community items.

Meanwhile, Realms is an Eternum resource management game that runs on Ethereum’s extended network, StarkNet. It’s progressing well during development and is approaching a wider testing phase. LordOfAFew demoed the game to the press, showing a menu-driven event consisting of military units, buildings, farming and other variables that players control before raiding online opponents.

What happened to the once-popular Loot-based NFT?

Artwork from the Loot-inspired game Realms

Another interesting game project in the Loot universe is HyperLoot, which uses Loot bags to visualize a 3D avatar that has the potential to be used in various game worlds. Tandavas told the outlet that this is a “second layer of visual building blocks” on top of the Loot NFTs, which he is using to create a fighting game called CC0 Wars with characters from Nouns and other Creative Commons with “unreserved rights” CC0 licensed project.

However, Loot’s community doesn’t just spawn games and related infrastructure. It also produces stories and pushes the boundaries of on-chain stories. Timshel’s Open Quill collective is compiling a Loot-inspired storybook that will be released as a physical book and NFTs that can be read through the Ethereum blockchain.

What happened to the once-popular Loot-based NFT?

The NFT, titled The Eye (for Adventurers), started mint this weekend. But it’s not just a loot-based storybook. NFTs are also the key to publishing work through The Librarium, a new Ethereum platform for on-chain storytelling. Loot gave birth to the Lootverse, and now the Lootverse can help others achieve other breakthroughs in Web3 creation.

Hofmann said of the ever-expanding Lootverse: “It’s been very inspiring and beyond my imagination. I’ve been fortunate to have built things in the past that have been adopted by creators, but this time it feels and continues to feel different. So much so I respect. people are involved in this project.”

The future of Loot

The challenges facing the Lootverse go beyond the coordination issues of many decentralized communities. One obstacle, Threepwave said, is the lack of a strong hand to guide infrastructure development and collaborative efforts. Multiple builders told the outlet that the bigger question surrounding Loot has to do with the incentives for further growth.

Loot is free, so there is no major sales revenue and no initial royalties are set, which means that gradually no funds flow into the community DAO treasury. Builders can create and sell their own NFTs to fund Loot-inspired projects, as some have done, but the market for those projects has thinned.

Timshel described the lack of funding in the first year as “a feature, not a bug”, as it ensured builders were enthusiastic about the cause and created in an economical way. But the Lootverse might only grow so much without the funding push to ensure creators can invest their time and be rewarded for their contributions to the ecosystem.

After the initial Loot craze faded, NFT holders voted to increase royalties by 5% on secondary sales, which helped drive several rounds of small funding, including Gitcoin for Loot-based projects. They are relatively modest rewards. After all, royalties are added after most high-value Loot sales, and relatively little ETH goes into the DAO.

What happened to the once-popular Loot-based NFT?

Threewave estimates that Loot’s community, which includes about 150 active builders, is facing funding issues? How to deal with it? The answer may come unexpectedly from “Loot 2”.

Timshel said that “the core leadership of Loot” (including Hofmann) is working on an upgraded NFT collection that will help solve the value accumulation problem and reward creators for their input. Timshel describes it as “an upgrade from Loot 2.0, like going from Windows 95 to Windows XP”.

Timshel said that the next-generation Loot NFT project currently proposed will seek to “provide an upgraded foundation for the Lootverse”, and the new Loot bags will be similar – but “more dynamic and more alive”. He pointed to Hofmann’s April “just legends” tweet, which included a passage that suggested the bag’s contained grand adventures.

What happened to the once-popular Loot-based NFT?

Timshel explains the premise: “The bag is actually an infinite container that contains the universe, and each bag is alive, not just like a bag of trash on the ground. It’s almost like a fantasy purse with your stuff in it. . This “wallet” can also contain media, characters, history, passes, equipment, and more.

In other words, it sounds a bit like a pass into the budding Lootverse. And for builders who bring that space to life, the revised launch and model will allow the DAO behind the project to offer Loot NFTs as a form of equity (or payment) in exchange for benefits that benefit the wider Loot community. Serve.

Timshel said of NFT grants: “Now, you are a holder, and now you have a reason to build with us.”

Whether Loot 2 will eventually materialize remains to be seen, and there may be other solutions to the funding hurdle. Still, the Lootverse is taking shape, and the product that some were looking forward to last year is about to see the light of day. Builders told the media they believe the momentum will only grow from here.

“It really feels like a grand new fantasy world is being built and nurtured by the community,” Hofmann said.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-happened-to-the-once-popular-loot-based-nft/
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