Algogems - Algorand Deep Dive
This week AlgoDaddy is coming in hot with yet another Algorand guide. Todays topic is Algogems - Algorand Deep Dive. In this part of the Deep Dive series we take a closer look at a recently popular ASA (Algorand Standard Asset). Actually, simply calling Algogems an ASA isn't fair. More than anything it's a fully-fledged platform with plenty of utility. Rest assured, it's truly a gem among stones.
What is Algorand Deep Dive?
I'll quickly add a short explanation for those not previously familiar with my "Algorand Deep Dive" series. At heart, the Algorand Deep Dive is where I summarize verified ASA's, meaning I do the research so you don't have to. I try my best to remain objective. I'm hoping AlgoDaddy can be your go-to website when you're looking to learn more about anything Algorand, and especially if you're interested in a specific ASA or platform. You can find the other Algorand Deep Dive articles here.
With that said - Let's take the leap and dive deep!
What is Algogems?
Algogems (GEMS) was launched in autumn of 2021. They received the Algorand Foundation Grant shortly thereafter.
Algogems is more than just a NFT market with a token attached to it - it's a complete platform aimed at content creators and buyers alike. It offers plenty of social aspects, profile customizations, digital art galleries, and a of course a dynamic NFT market. Moreover, it's affordable, ecological and scalable - much thanks to them having chosen the best possible protocol for Algogems - Algorand. Among the different crypto and blockchains available Algorand is the prime choice for a venture like Algogems.
Furthermore it's a community-driven environment, with events, lotteries, contests and more. Everything while remaining decentralized and running a governance system together with their native token - $GEMS. More about that further below.
Lastly, one of the best aspects of Algogems is that you can mint your NFT's for free. You can find the Algogems Website Here.
What is a NFT?
NFT stand for Non-Fungible Token. It's one sub-group of the different ASA categories. In everyday language NFT is commonly used referring to art which have been uniquely printed (or minted) on a certain blockchain. Essentially not being fungible means that every NFT is unique, as it has a certain ID number attached to it. This means ownership can also be easily verified, and NFTs can be easily sold and bought through the free market.
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GEMS - Algogems Algorand Token
GEMS are the native Algogems tokens used on their platform. GEMS are not for purchasing NFT's, but rather used in order to mint NFT's, as well as facilitating a reward system for content creators. In addition the NFT creators can use their GEMS to boost visibility of their NFT's on the Algogems platform. Buyers can use GEMS for tipping said content creators to show further appreciation of their work, as well as boosting their visibility even more.
The GEMS reward system allows users to also have an internal way of rewarding themselves.
Furthermore GEMS are deflationary token, which means that a certain amount of tokens are burned. The way Algogems does this is through charging a 5% fee on all the NFT sales (in ALGO) through their platform, then using that same ALGOs to buy back GEMS and burn them.
On top of that Algogems also apply a decentralized governance system to their platform through GEMS, where 1 GEMS equals 1 vote.
There are 10 million GEMS existing in total.
Where Can You Buy GEMS?
GEMS, which are Algogems Algorand token, can be obtained or purchased in 3 different ways, as described below:
1. ProBit Global Exchange GEMS/USDT
Algogems token GEMS was recently listed on the Top 20 cryptocurrency exchange ProBit Global. It's possible to trade GEMS/USDT. It's possible to create an account and deposit FIAT (USD, EUR, etc) to ProBit in order to buy USDT. Thereafter you're able to purchase GEMS using your USDT. Check out the Current GEMS Price.
2. Tinyman Liquidity Pool
Another way to buy GEMS is through the Algorand native Tinyman platform. Tinyman is a DeFi platform offering users to swap Algorand for different ASAs/Algorand Tokens.
You can Swap Algorand for GEMS here.
3. Staking on the Yieldly Platform
The Yieldly Staking Pools allows users to earn Algogems through staking. The APY is prone to fluctuation depending on total amount staked by all participants. This means that the numbers presented below are estimates reflecting the values as of the date when this article was posted.
1. Stake Yieldly for GEMS (est. 54% APY)
2. Stake GEMS for GEMS (est. 19% APY)
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How To Use Algogems?
Using the Algogems NFT platform artists can mint NFT's for free, or pay 0.2 ALGO to have their creation minted. At the moment I could not find a proper explanation of the pros and cons between the two options.
The creator then gets to chose whether it's a limited-time auction, or if the NFT is sold for a fixed buyout price. What's more is that the artists are able to set a certain royalty percentage on their NFT piece, which means that if the creation gets purchased and later resold - then they'd collect that % of the price it's sold for.
Quick Tip: You can list off-platform NFT's on Algogems as well.
How To Mint NFT's Free on AlgoGems
Below is a great video I found from the channel "Rules for Rebels" on Youtube, where the author carefully guides you through the process of minting an NFT for free on Algogems.
Social Media - Algogems
You can follow the project on the official Social Media platforms or through their website.
Twitter - @algogemsnft
Telegram - @AlgogemsLounge
Reddit - Algogems Subreddit
Website - algogems.io
Discussion & Conclusion
Algogems is a pretty ingenious concept. From an Algorand ecosystem point-of-view it's excellent, because it lowers the barrier of entry for engaging in the NFT markets, for artists and potential buyers alike. It lets anyone get involved in NFT's, and hence crypto in general. They achieve this by having chosen themselves the best possible protocol for Algogems - Algorand. The Algorand blockchain enables Algogems to be ecological, affordable and scalable. This is what makes the NFT market on the Algorand blockchain much more attractive than it's Ethereum counterpart. For the uninitiated; minting on the Ethereum blockchain can be very expensive due to high gas fees.
Nevertheless, there are already several popular NFT galleries on the Algorand blockchain. However it'd be wrong to compare Algogems with RandGallery and AB2 Gallery, as Algogems fill their own unique place in the Algorand ecosystem and provides plenty of utility and social engagement that the previously mentioned platforms doesn't offer.
The project enjoyed a hot surge in popularity at launch, after which it seems to have slightly cooled off. Hopefully there will be increased social media engagement and more updates about the Algogems platform in the upcoming months. I'm personally looking forward to it.
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Final Words
Thanks for reading this weeks AlgoDaddy guide Algogems - Algorand Deep Dive. As always, it's been a pleasure to have you, and any feedback is warmly welcomed in the comments below.
If you enjoyed this article in particular, then consider buying AlgoDaddy a coffee.
Oh, and one last more thing - I'll be announcing a giveaway for hundreds of ALGOs in the upcoming days. Be sure to follow the blog or subreddit closely so you can participate as well!
1 Comments
It is very informative article, great work again! Thanks for educating us!
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