Kadena NFT's: The Future is Poly-fungible

8 min readOct 10, 2021

Digital art has taken the world by storm, with the rich suddenly becoming digital artists and digital artists, in some cases, becoming rich seemingly overnight. However, digital art is only one use case for NFT's. NFT stands for non-fungible token. Non-fungible is an economic term that you could use to describe things like your dog, a video file, or your phone. These things are not easily interchangeable for other items because they have unique properties, which means the value isn't in the item. It's what comes with it.

KDA NFT's can be easily verified, and KDA NFT's can not be falsified. Depending on the use case, Kadena NFT's can have multiple owners or a single official owner. The Kadena blockchain — Chainweb — secures them. One can modify ownership with multi-signature accounts and mint new Kadena NFT into existence, free.

There is a clear opportunity to innovate on digital asset exchange, and Kadena is committed to delivering robust and decentralized infrastructure for NFT's. NFT's allow tokenization of assets in finance, music, logistics, video games, art, and collectibles, to name a few industries. On the other hand, fungible items can be exchanged because their value defines them rather than their unique properties. For example, $KDA or $USD are fungible because KDA / USD is exchangeable for USD / KDA. Kadena NFT's are poly-fungible.

What's a Kadena NFT?

Kadena NFT's are tokens on Chainweb that we can use to represent ownership of unique items. Kadena continues to outclass other NFT standards with KIP-0011, the poly-fungible standard. It enhances ERC-1155 with actual fractional custody just in case scarcity isn't the only game in town. KIP-0011 outclasses all ETH NFT standards and proposals (ERC-721, ERC-1155, EIP-2309). A testament to Pact's upgradeable properties and confirmation of the difficulty of improving ETH standards. EVM has the wildly unsafe property that any code address can receive funds under ERC-1155 and related standards, without any way to know if that address is prepared to handle custody. Upgrades built into $KDA make it the first or only smart-contract-driven base layer coin, and it uniquely benefits every NFT in the ecosystem.

An internet of KIP Assets

NFTs and Chainweb solve some of the problems that exist on the internet today. As everything becomes more digital, there's a need to replicate the properties of physical items like scarcity, uniqueness, and proof of ownership. Not to mention that digital items often only work in the context of their product. For example, you can't re-sell an Amazon movie you've purchased, or you can't exchange one credit card's reward points for another provider's credit.

Here's how an internet of KIP NFTs compares to the internet today.

NFTs on Kadena launch with higher quality provenance than any other platform because 1. Article storage, 2. Haber Content Integrity 3. Proof-of-work for Superior Resilience 4. Uniqueness (scarcity) Enforcement 5. Superior custody — only on Kadena and Pact.

NFT examples and Terms

The NFT world is relatively new, and in theory, the scope for NFTs is anything unique that needs provable ownership. Here are some examples of NFT ideas, use cases, and terms that exist to buy and sell digital art today.


Colorblock was the first NFT platform to launch on Kadena. It offers a fun way to share pixelated digital art with a handy online wallet extension.

Making addresses easier to remember

Someone can make NFTs that provide an Ethereum address with an easier-to-remember name like mywallet.eth. This means you could ask someone to send you ETH via mywallet.eth rather than 0x123456789. Kadena doesn't need NFT's for this as it was already built to make it easy to assign memorable account names. The KIP-0012 standard was recently introduced to further improve this Kadena feature.


The creator of an NFT gets to decide the scarcity of their asset at creation for free, with gas stations. NFTs make it possible to create digital scarcity — something that has never before existed. When something is scarce, the value of that commodity goes up. Additionally, an NFT makes goods tradeable, and there’s a chance that, through trading, the value of the asset goes up. NFT’s and Defi on Kadena are about to break the mold, beyond copycats/vampires, with a safe, decentralized infrastructure. Kadena brings innovation, specialization, leveraging multi-chain liquidity, HFT ledgers, lending quotes, and oracle services. Poly-fungibility and multi-signature accounts make it possible to divide a super scarce NFT into fractions, and those fractions can have multiple owners.


Royalties are what creators receive for their content. A lot of creators don't get paid the royalties they deserve. If your NFT has a royalty programmed into it, you'll never miss out.

The most significant use of NFTs today is in the digital content realm. That's because that industry today is broken. Content creators see their profits and earning potential swallowed by platforms. An artist publishing work on a social network makes money for the venue, which sells ads to the artists' followers. They get exposure in return, but exposure doesn't pay the bills. NFTs power a new creator economy where creators don't hand ownership of their content over to the platforms they use to publicize it. Ownership is baked into the content itself.

In EVM, every project is an island, and this harms ecosystem development by fragmenting markets and inventory. NFT minters are usually trapped in a single market, while fractionals cannot benefit from placement on multiple exchanges. Pact on Kadena is built for interop by making it safe to call other contracts, and this means that a single poly-fungible Kadena NFT ledger can service the entire market.

DeFi x NFTs

The NFT world and the DeFi world can work together in many exciting ways on Chainweb, one example is NFT-backed loans. There will soon be lending applications on Kadena that let you borrow money by using collateral. For example, you collateralize 100 KDA so you can borrow 200 DAI. This guarantees that the lender gets paid back — if the borrower doesn't pay back the DAI, the collateral is sent to the lender. However, not everyone has enough crypto to use as collateral. Kadena can allow for NFT/ Fractional NFT backed loans seamlessly. Imagine serial/fractional NFTs where elements can trade on different exchanges from each other. Imagine unfragmented liquidity pools that still support special incentives and cash flows on multiple exchanges. It's going to happen: only on Pact and only on Kadena.

Video Games x NFT's

Video games can see many use cases for poly-fungibility. Ultimately the items you grind for in-game can outlive the games themselves. In many regular games, you can buy digital items for you to use in your game, but if those items were NFT's, you could recoup your money by selling them when you're done with the game. If a game is no longer maintained, your items will always be under your control and in your wallet. This means in-game items become digital memorabilia and have value outside of the game. These items could have one or multiple owners. For example what if players you opened in packs (that cost you hard-earned money) on NBA 2k or FIFA Ultimate team could be sold for real cryptocurrency long after the next iteration comes out, transfer players from one year's game to the next, or split the cost of a player and share the player with multiple owners.

How do Kadena NFT's work? The answer is poly-fungible.

The immediate inspiration for Kadena NFT's comes from the ERC-1155 "multi-token" standard, reflecting the attractive feature that a single item can represent unlimited tokens. As beautiful as that is for developers, future Pact versions will support single items to present a single-token interface for multiple assets. There is more to NFT's than being "multi-token."

Instead, the plasticity of fungibility adds the most value to Kadena NFT's. Use-cases that want to issue some kind of fractional ownership or series are where poly-fungible shines. Pact but can offer truly "fractional" ownership with higher precisions.

In theory, this would unlock the possibility to do things like own a piece of a Picasso. You would become a shareholder in a Picasso NFT, meaning you would have a say in things like revenue sharing. It's very likely that one day soon, owning a fraction of an NFT will enter you into a decentralized autonomous organization (DAO) for managing that asset.

NFTs gives the ability to assign or claim ownership of any unique piece of digital data, trackable by using Chainweb as a public ledger. An NFT is minted as a digital object representing digital or tangible assets.

The minting process, from a high level, has the following steps that it goes through:

  • Creating a new transaction
  • Validating information
  • Recording information into the blockchain

Kadena NFT's have some unique properties:

  1. Pact doesn't have EVM safety issues.
  2. Pact has too flexible of a custody model to handle automatic associations.
  3. A module can be upgraded to manage custody of a module-guard-controlled account in some token.
  4. Poly-Fungible standard: fractional NFTs with cross-chain and multi-sig safety. Fractional NFT's are tokens themselves.
  5. Cross-chain NFTs, effortless inventory management.

In other words, if you own a Kadena NFT:

  • You can easily prove you own it, with multiple wallets, from multiple devices, and no one can manipulate it in any way.
  • You can sell it or some of it, and in some cases, this will earn the original creator resale royalties.
  • You can hold an entire or fractional NFT forever, resting comfortably knowing your wallet secures your asset on Kadena.

And if you create a Kadena NFT:

  • You can easily prove you're the creator.
  • You determine the scarcity and fungibility, and you can earn royalties every time it's sold or a fraction of it is sold.
  • You can sell it on any NFT market or peer-to-peer. You're not locked into any platforms, and you don't need anyone to intermediate.
  • Enjoy cash flows, not just royalties. Mint marketplaces, not just tokens

Decentralized infrastructure is a highway system for digital value with on-chain onramps and offramps. It's only possible when interop is safe and cheap: Kadena's scalability and low gas fees matter here too. Kadena is maximizing earnings for NFT creators with innovative standards and free or negligible gas for the minting and transfer of NFT's. Something big is coming very soon.