What is Muse (MUSE)?

Deep Dive

1. Purpose & Value Proposition

Muse addresses NFT illiquidity by enabling fractional ownership and instant trading. NFT20 allows users to:
- Deposit NFTs into pools to mint ERC20 tokens (e.g., 1 CryptoPunk NFT → 1,000 PUNK20 tokens).
- Swap NFTs within pools without waiting for buyers, reducing price discovery friction.
- Govern protocol parameters like fees (0.3%–5%) via MUSE staking (NFT20).

2. Technology & Architecture

Built on Ethereum, NFT20 uses:
- Permissionless pools: Users create/open pools for any NFT collection.
- Automated pricing: Pool ratios (e.g., 1:1,000 NFT-to-ERC20) set by creators, with swaps executed via smart contracts.
- Interoperability: ERC20 tokens tradeable across DeFi platforms, bridging NFTs with lending/derivatives ecosystems.

3. Tokenomics & Governance

• Supply: 508,554 MUSE circulating (61% of 829,194 total).
• Incentives: 75% of protocol fees distributed to MUSE stakers; 25% burned to reduce supply (NFT20).
• Concentration risk: Top 10 wallets hold 75.6% of supply, potentially centralizing governance decisions.

4. Pros & Cons

Advantages:
- Solves NFT liquidity crunch via ERC20 standardization.
- Daily rewards (fees) incentivize long-term participation.
Risks:
- High whale dominance may deter decentralized governance.
- Competing solutions (NFTX) fragment market share.

Conclusion

Muse’s value hinges on NFT20’s ability to streamline NFT trading while balancing governance decentralization—a critical factor as the NFT market grows 23% MoM. How might ERC20 tokenization impact niche NFT markets like gaming assets or digital art royalties?