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MegaETH has unveiled soulbound NFTs to potentially raise $28 million as airdrop farming models receive heat.
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Ethereum layer-2 project MegaETH is bucking the trend, opting out of the airdrop farming frenzy and unveiling The Fluffle, a non-fungible token (NFT) collection that grants network participants ownership stakes.
The 10,000-piece NFT collection represents 5% of the MegaETH network, with allocations set to evolve alongside the project. The NFTs are soulbound, meaning they cannot be transferred.
The NFT sale will be offered in two installments, with the first directed at over 80,000 whitelisted addresses. Each will be priced at 1 Ether (ETH). At current prices, the sales could net $28 million.
“We chose to launch a soulbound NFT collection because it avoids invasive KYC [Know Your Customer] requirements, remains anti-sybil, and uses stringent AML [Anti-Money Laundering] procedures,” MegaETH said in an X thread, adding that none of its team members will hold the NFTs.
Related: OpenSea faces backlash over ‘OS2’ private beta, airdrop dynamics
The MegaETH project has been highly anticipated due to its advertised 100,000 transactions per second, and it includes Ethereum co-founders Vitalik Buterin and Joe Lubin among its backers. According to MegaETH co-founder Yilong Yi, the network’s public testnet is set to launch in early March.
Source: Yilong Li
MegaETH’s NFT plans come at a time when the sector is hemorrhaging interest. Total secondary NFT sales across blockchains haven’t broken the $1 billion mark since April 2024, according to CryptoSlam data. The number of unique buyers has remained below 1 million since May, while December’s brief market rebound has since faded.
NFT market struggles extend to 2025. Source: CryptoSlam
Several crypto projects have opted for airdrops as a means of distributing network ownership, with allocations based on users performing tasks and accumulating points, but the model is wearing thin. Sybil activities — where individuals game the system with multiple wallets — have surged, and accusations of insider trading are rampant. Users increasingly find themselves walking away with less than expected, fueling frustration and backlash.
This article first appeared at Cointelegraph.com News
