【$WEN】Creating Buzz with an Airdrop Targeting 1 Million People / Community Tokenization through Ovols Protocol for Splitting and Tokenizing NFTs / Issuing as the First Token on Jupiter Launchpad
This is a token that is currently in the midst of a hot air drop.
Good morning.
I am Mitsui, a web3 researcher.
Today, I researched about "$WEN".
Table of Contents
1. Overview | What is Ovols?
-Mechanism
-Other features
2. NFT Information | 10,000 Ovols NFTs
3. Airdrop | $WEN Token Issued by Jupiter and Making Waves
4. Analysis | Expanding Interoperability Between Protocols
Overview | What is Ovols?
Before explaining about "$WEN", let me first explain about the underlying protocol called "Ovols". "$WEN" is a meme coin issued by the "Ovols" team using that protocol, so it is necessary to understand "Ovols" first.
"Ovols" is a tokenization protocol that seamlessly integrates NFTs into the DeFi ecosystem, emphasizing composability and interoperability. It enables fractionalization of NFTs, allowing them to be traded like tokens. It is built on Solana.
◼️ Mechanism
① NFT → Tokenization
Firstly, 1 NFT is divided into 1,000 parts. The NFT is locked, and tokens (fNFT) representing 1/1,000 ownership are issued.
The issued fNFTs are deposited into the Collection Pool, and collection tokens equivalent to the deposited fNFTs are granted.
These tokens are issued using the SPL standard (Solana's token standard, similar to ERC-20) and are usable in DeFi. They can be swapped for SOL using Orca/Raydium swaps.
In order to increase liquidity, the individual NFTs are converted into collection tokens.
For example, there is a collection of 10,000 NFTs called Ovols. These can be tokenized into $OVOL through the Ovols protocol.
Currently, 2,466 NFTs are locked and converted into $OVOL tokens.
②Token→NFT
Furthermore, it is possible to convert the original NFT back by collecting 1,000 collection tokens in DEX or other platforms.
◼️Other features
Ovols is partnering with Jupiter to support token swaps, trades, and DCA (dollar-cost averaging) transactions for issued tokens. It also enables liquidity provision, allowing for transactions similar to regular tokens.
Furthermore, Ovols provides a self-service tool called "Creator X" that allows users to freely create, mint, and launch NFTs. It provides all the necessary services for presale rights determination, airdrops, metadata creation, and supporting the creator's journey.
NFT Information | 10,000 OvolsNFT
There are 10,000 NFTs called Ovols in existence. These NFTs were minted one week after the FTX bankruptcy on November 17, 2022. At that time, the entire cryptocurrency market was experiencing a decline, and SOL in particular had dropped to around $8.
However, thanks to the recovery of SOL since then, the current floor price is 9 SOL.
OvolsNFT has four types:
Genesis: 9,223 units
Evolved (evolved from Genesis)
Legendary: 777 units
1/1: 24 units
There are three utilities for OvolsNFT:
Tokenization by splitting
Staking for earning points
Evolution
Splitting refers to the functionality mentioned above. By staking NFTs, you can earn points. These points, called Essence, will be transformed into a core element of the future ecosystem. Please note that staking rewards vary depending on the duration and the number of NFTs staked. Additionally, Legendary NFTs provide higher rewards compared to Evolved NFTs.
Here comes the crucial point: only Evolved NFTs and beyond can be staked, while Genesis NFTs cannot. Therefore, it is necessary to evolve Genesis NFTs into Evolved (after evolution).
To evolve, you need to burn 1 Ovol or use 900 $OVOL. Since 1 Ovol can generate 1,000 $OVOL, it is more cost-effective to issue tokens and then evolve, which also promotes tokenization.
Currently, the status is as follows:
Genesis Ovols: Supply 9,223, Floor 8.49SOL
Evolved Ovols: Supply 22, Floor 15.5SOL
Legendary Ovols: Supply 777, Floor 11.1SOL
At this point, they are not being used much for evolution. Tokenization and management may have more use cases.
AirDrop | Jupiter Issues $WEN Token and Creates Buzz
Now, it may have been a long read, but for some, this might be the main point. As I was researching the excitement around the $WEN token, I came across the original protocol called "Ovols".
"$WEN" is created by utilizing the technology of OvolsNFT to tokenize Meow's poem, "A Love Letter to Wen Bros," which has been divided into one trillion pieces.
Meow is the founder of Jupiter, and "A Love Letter to Wen Bros" is a poem (words) of gratitude that Meow posted on X to Wen Foundation, which is operated by "Ovols". Wen Foundation is a group dedicated to supporting the development of public goods and giving back to the Solana community.
As the initial contribution, they announced Wen New Standard (WNS), an open-source NFT standard intended to be expanded by all members of the community.
Let's summarize the story.
Jupiter and Ovols originally had a partnership.
Ovols launched Wen Foundation to contribute to the Solana community and announced Wen New Standard (WNS), an open-source NFT standard.
Meow, the founder of Jupiter, posted a poem on X praising Wen Foundation's activities.
The poem received a positive response.
The poem is divided into one trillion pieces on Ovols using Wen Foundation's new NFT standard, Wen New Standard (WNS), and $WEN is born as the community token (meme token) of Wen Foundation.
This is the flow of events. (There might be some discrepancies in the timeline, but the overall content is accurate, I believe.)
And here, another timing overlapped, and it has become a significant movement so far. This is related to Jupiter's movement.
Jupiter is approaching an airdrop on February 1st next month. It is expected to reach a scale of one million people, and the distribution of $WEN is seen as part of its testing. It is also becoming the first project of the launchpad "LFG" launched by Jupiter.
With such connections, the distribution of $WEN has become the wallet address targeted for Jupiter's airdrop of JUP tokens, and approximately one million addresses are targeted. The current value of $1WEN was 0.0001088 USDC.
I believe that the reason why it has become such a hot topic is mainly due to the existence of Jupiter. It targets over a million wallet addresses and is also the first community token based on fractional NFT. Its significance as the first token of Jupiter LFG and the first NFT based on WNS infrastructure also enhances its value as a commemorative item.
Until January 29th, if you don't mint your tokens, the unclaimed tokens will be burned, so it might be a good idea for those who have been using Jupiter to try and claim their eligibility early.
(I found it interesting, so instead of an airdrop, I bought a small amount of $WEN tokens. There is a possibility of a price crash with meme tokens, so please do your own research and take responsibility when making a purchase.)
Analysis | Collaboration between protocols is expanding
Lastly, let's discuss.
$WEN was interesting, but the underlying Ovols protocol was also very intriguing. Personally, I really like the feeling of the true value of tokens being demonstrated when fractionalizing one token of a fractional NFT. So, the Ovols protocol, which specializes in that, feels very interesting, and I would like to continue following it in the future.
Furthermore, what has become a recent standard for airdrops is including the usage history of other protocols as a condition for token distribution. This can be used not only for a vampire attack where rival protocols steal market share, but also for synergy between protocols that have a friendly relationship like Jupiter and $WEN.
I find this movement to be very interesting.
For example, when releasing an NFT collection, there have been cases where acquaintances or holders of related collections are given AL tokens. However, since this is only AL and it is unclear whether it will lead to further minting, and especially since there are only about 10,000 NFT collections, it is difficult to connect with a large and impactful community.
But when it becomes a token, like in the case of Jupiter and $WEN, the target audience becomes on the scale of millions, and everyone can be distributed tokens for free, making it easier to create a significant impact.
During the time when DAOs were starting to emerge, it was foreseen that DAOs would exchange tokens, help and cooperate with each other, and a future where they would connect was approaching. And it already feels like that future has begun to arrive. DAOs exchanging tokens with each other, connecting their protocols, connecting communities, and demonstrating synergy while ensuring interoperability, similar to stock exchanges.
The most prominent example of this is the relationship between chainlayers and protocols, but gradually it has also started to emerge between protocols and DApps. I believe this is a result of the emergence of large protocols with hundreds of thousands to millions of users and relatively stable token prices. Therefore, I think it will continue to accelerate from now on.
Which protocols to collaborate with will likely become a major factor in future protocol strategies.
That concludes today's research on "$WEN" and "Ovols".
Disclaimer：I carefully examine and write the information that I research, but since it is personally operated and there are many parts with English sources, there may be some paraphrasing or incorrect information. Please understand. Also, there may be introductions of Dapps, NFTs, and tokens in the articles, but there is absolutely no solicitation purpose. Please purchase and use them at your own risk.
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Author
mitsui
A web3 researcher. Operating the newsletter "web3 Research" delivered in five languages around the world.
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The author is a web3 researcher based in Japan. If you have a project that is interested in expanding to Japan, please contact the following:
Telegram：@mitsui0x
*Please note that this newsletter translates articles that are originally in Japanese. There may be translation mistakes such as mistranslations or paraphrasing, so please understand in advance.