A Pi-NFT is a special type of Non-Fungible Token (NFT) that represents tokenized real-world assets (RWAs) such as luxury items, art pieces, or collectibles on the Aconomy platform. Unlike traditional NFTs, which typically symbolize digital art or virtual assets, Pi-NFTs are tied to physical, high-value assets, ensuring that their provenance and authenticity are verified by experts known as Validators.
Pi-NFTs on Aconomy are issued by Jurisdiction Verified Validators (JVV) or Self-Regulated Validators (SRV). These validators are responsible for assessing and authenticating the physical assets. Once an asset's authenticity is confirmed, the validators enhance trust by adding liquidity bonds to the Asset NFT to transform it into a Pi-NFT. This process ensures confidence in the marketplace and safeguards its integrity. Once validated, Pi-NFTs can be traded, auctioned, or used for lending and borrowing on the platform, providing seamless liquidity while maintaining the security and reliability of a decentralized asset economy.
Here’s an overview of Pi-NFTs and how they work:
Tokenization of Real-World Assets: Aconomy’s tokenization engine enables anyone to bring their real-world assets on the blockchain and transform them into tokenized assets i.e. Asset NFT.
Validation and Transformation: To convert Asset NFT into Pi-NFTs, asset owners must submit their Asset NFT to certified RWA Validators. These validators are trusted experts in the specific asset class, recognized within Aconomy’s ecosystem.
Verification Process: RWA Validators evaluate and verify the credibility, value, and legitimacy of the Asset NFT. They conduct a thorough review of the assets and accompanying documentation, adding an extra layer of trust and authenticity to the NFTs.
Adding Liquidity Bonds and Conversion: Once the Asset NFT is authenticated, RWA Validators can transform the Asset NFT into Pi-NFTs by staking tokens as Liquidity Bonds. The staked amount represents the RWA validator’s confidence in the asset’s legitimacy. This Liquidity Bond helps build trust and encourages potential investors to invest in Pi-NFTs.
Flexible Staking: RWA Validators have the flexibility to stake an amount that reflects their confidence and expertise. This amount can be less than, equal to, or greater than the value assigned to the asset by the asset owner.
Collateral for Asset Owners: The RWA Validator's staked tokens serve as collateral for the asset owner, who can withdraw these funds from the Pi-NFT. This provides the asset owner with liquidity without giving up ownership of the asset during the validation period.
Unlocking Liquidity: The Pi-NFT process allows asset owners to unlock liquidity from traditionally illiquid assets. This liquidity can be used for investments, financial needs, or other purposes, while the ownership of the asset is maintained.
Trading and Utilization: Once converted into Pi-NFTs, they can be fully utilized within the Aconomy platform. Asset owners can list their Pi-NFTs on the Aconomy Marketplace, with options to sell, lend, borrow, auction, or swap their assets.
Pi-NFTs bridge the gap between traditional illiquid assets and the NFT ecosystem, offering a way to tokenize, validate, and unlock liquidity for these assets. At Aconomy, we provide asset owners with new opportunities to utilize their holdings while attracting investors who seek transparent, validated RWAs for investment within the blockchain space.