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SOTA Finance: Marketplace for limited edition NFT art

The internet improved how we communicate, share files, and stay connected. Unfortunately, it also made it hard to preserve content copyright. Rules and regulations haven’t done much to solve the problem. 

As such, digital content creators have to choose between safeguarding copyright or reaching their audience. Mostly, they don’t receive the exact incentives. Luckily, Bitcoin brought blockchain technology, opening a new world of possibilities. For instance, it powers decentralized finance (DeFi) and non-fungible tokens (NFTs).

Notably, NFTs have unique signatures that allow them to move from one user to another without affecting their authenticity. Interestingly, their ownership is automatically changed during a purchase. SOTA Finance brings the new world to reality by connecting NFT creators and collectors by allowing limited digital content creations to be easily created and transacted using blockchain technology.

Background

Dung Nguyen and Tommy Le are the Co-founders of SOTA Finance. Nguyen has rich experience in blockchain research, business management, and economics.

On the other hand, Le’s strengths are IT consulting, blockchain development, and general software development. Its CEO, Thao Nguyen, has a strong background in financial technology, focusing on risk management, investment, and asset modeling. The CTO, Thi Truong, also has technical expertise in blockchain technology.

What is SOTA Finance?

SOTA finance is a decentralized platform that brings together NFT creators and collectors. In other words, it facilitates NFT creation, selling, and buying. Additionally, it has a governance token that allows users to have a say in how the platform is run. Notably, this is among the few firsts in NFT marketplaces.

Note that SOTA is an inter-blockchain platform allowing NFT creation on Binance Chain, Ethereum, and TomoChain.

SOTA Finance allows the creation and sale of non-fungible tokens, and buyers can choose to trade on the network or external/secondary markets such as OpenSea.

How SOTA Finance Works

User Login

The first step to start using the multi-chain NFT platform is through logging in. Users can either use a valid email-password combination or Google ID or Facebook ID. Upon creating an account, the platform assigns each user a wallet where it deducts gas fees to pay for user-ignited activities.

NFT Creation

SOTA is open to everyone thirsty to develop an NFT using original virtual content. Initially, creators define key metrics such as how many NFTs will exist and the expected royalties when their creations are sold on secondary markets.

At present, SOTA caps the royalties at 10 percent. Note that royalties are calculated as a percentage of the profits from sales. Notably, the deductions are credited directly to the creators.

Creators can sell their works on SOTA by listing their prices in Tether (USDT). Note that the protocol charges a 15 percent creation fee during the first sale.

The platform runs verified accounts that recognize creators as the original owners. However, creators have to explicitly apply for this type of account. Whether or not SOTA administrators grant their request depends on a creator’s profile on the network.

In case of a copyright violation, users can use the inbuilt “report” feature to bring it to the attention of the platform’s admins.

NFT Collection

After creating, it’s time for collecting. SOTA Finance users can freely trade non-fungible tokens directly on the platform. Notably, buying and selling attract a flat fee of 2.5 percent.

Observe that although NFT prices are set in USDT, users can still use other cryptocurrencies such as Ethereum (ETH) and Bitcoin (BTC) to make a purchase. However, to do this, the platform converts the users’ coins to USDT using prevailing market prices at the time of the conversion. An example of exchanges providing updated prices includes Uniswap.

NFT Farming

In the wake of DeFi, yield farming takes center stage. SOTA Finance isn’t blind to the phenomenon and enables users to stake the network’s base currency, SOTA, to earn rewards.

Staking the native coin earns stakers Pumpkin points. Apart from users, creators can join hands and provide NFTs for farming purposes. In such a scenario, the number of NFTs dedicated to staking is set during creation. Additionally, creators set how many Pumpkin points are needed to lay your hands on the rare gem.

However, unlike other NFTs on the marketplace, a farmed NFT earns the creator half of its price as the royalty fee.

SOTA token

SOTA is the base asset of the SOTA Finance ecosystem. The token has a fixed supply of one hundred million coins. Out of the total, 40% goes to token sale/swap.

In addition, the founding team takes 15 percent, and 4 percent drives the bounty program. Additionally, there is a six percent allocation to rewards to NFT farming, and ten percent goes to incentivizing participants for 36 months.

Notably, the smart contract powering the SOTA token has a 99 percent success score from CERTIK, a reputable security company focusing on blockchain-based applications.

In its qualifying statement, CERTIK noted that it “believes this smart contract passes security qualifications to be listed on digital asset exchanges.”

Apart from the token contract, the security company interrogated the SOTA Finance source code giving it a score of 100 percent for key technical areas such as integer overflow/underflow, function incorrectness, buffer overflow, reentrancy, transaction order dependence, among other areas that can weaken the platform’s security.

Benefits of holding SOTA tokens

SOTA is a governance token for the SOTA Finance platform, meaning they can vote on decisions relating to how the platform is run. The act of voting itself also generates rewards.

Other benefits for token holders include staking benefits. SOTA tokens cam be staked in return for pumpkins. Currently the staking rate is 100 SOTA staked yields 1 pumpkin every 1 day. Pumpkins are a form of “payment” for redeeming NFTs on their “Farm NFT” page.

SOTA Finance artworks
SOTA Finance artworks (Image credit: SOTA finance)

How Does SOTA Cater to Mobile Users?

Life is mobile, and so is SOTA Finance. The platform’s developers are committed to enabling access through mobile devices. The application allows for NFT creation, sale, and buying.

Non-crypto Users

The platform isn’t made for only crypto holders. As such, the team is working on interfacing the project with popular conventional payment methods like PayPal and credit card platforms such as MasterCard and Visa.

Conclusion

Armed with a governance token, SOTA Finance brings a new dimension to the NFT marketplace. Moreover, the platform is among a few in its class to natively support NFT staking.

Notably, all critical areas are audited by a leading blockchain security firm. This improves user confidence, hence, promotes a better adoption rate. Another key feature on the network is its resolve to bring non-cryptocurrency users on board by adding traditional payment methods. On the other hand, its mobile application allows users to stay in touch when on the go.

The information provided in this article is intended for general guidance and information purposes only. Contents of this article are under no circumstances intended to be considered as investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly encourage you to do your own research before taking any action. Although best efforts are made to ensure that all information provided herein is accurate and up to date, omissions, errors, or mistakes may occur.

B.C.
Ben loves Bitcoin and Bananas!

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