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Metaverse DAO Jenny Pools $7M For Fractionalized NFTs On Unicly

May 13, 2021 10:40 am
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Metaverse DAO Jenny Pools $7M For Fractionalized NFTs On Unicly

Jenny DAO, the first Metaverse DAO to launch its social token on Unicly, has pooled $7 million towards shared NFT ownership. Funds raised by the DAO, including contributions from several leading VCs, will go towards establishing and managing an NFT collection on Unicly.

The $7M will make Jenny DAO one of the largest stewards of NFT collections on Unicly and will give holders of its native JENNY token a direct incentive in seeing Unicly succeed. On May 13, the uJENNY token will list on Unicly’s AMM, which combines the token-swapping functionality of a regular DEX with the tools for trading ownership of NFTs.

Making NFTs Liquid

NFTs are traditionally illiquid assets, meaning the buyer risks being lumped with the asset for an extended period or forced to sell at a loss if they cannot identify a like-minded buyer. In this respect, NFTs have certain parallels with fine art. While highly collectible, NFT valuations can be highly subjective and their uniqueness can make it hard to broker a sale.

Unicly is on a mission to change all that – for NFTs at least – by hosting collections that are purchased and owned by collectives, rather than by a handful of whales with the wealth to make speculative bets. Unicly aims to democratize NFT ownership, but it can’t do it alone: only through the participation of collectives such as Jenny DAO will this be possible.

Jenny’s Metaverse DAO allows anyone to gain exposure to the NFT market through a fractional ownership model. All key matters pertaining to Jenny’s operations are determined by its DAO. Members can dictate the parameters of vaults that hold NFTs, oversee management of the treasury, and determine which NFTs should be bought and sold and when.

Blockchain VCs Claim A Slice Of The Action

Blockchain VCs aren’t generally interested in investing in NFTs themselves; they lack the framework to do so for one thing, and the market is still too immature to support accurate and independent valuations. Instead, shrewd blockchain VCs have gone down the picks-and-shovels route by investing in the startups that are helping NFTs realize their full potential. 

Jenny DAO straddles the two verticals within the burgeoning NFT sector, supporting access to NFTs themselves, while also giving exposure to the infrastructure that will host them in the form of Unicly’s vaults. Multicoin Capital, Ascensive Assets, Animoca Brands, and Metapurse all contributed to the $7 million pool Jenny raised for its DAO, and a slew of other crypto investment firms also chipped in.

Mable Jiang, partner at Multicoin Capital, explained the excitement surrounding Unicly succinctly: “Unicly is good for both NFT connoisseurs and speculative investors. For NFT owners, fractionalization improves capital efficiency for their NFT assets and offers an active venue of continuous price discovery.”

As for Jenny DAO, its uTokens grant NFT owners their proportion of the collection and enable them to sell these tokens on an AMM whenever they require capital. As a result, NFTs will gain a level of liquidity once synonymous with ERC20 tokens. 70% of the funds raised from the initial sale of the Jenny token have been allocated towards purchasing NFTs, ushering in a new way for buying, selling, and storing non-fungible tokens.

Image Sourced from Pixabay

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