Notorious Pixelmon Reincarnated as NFTs, Embraces Fractional IP Ownership

The Pixelmon project, initially known as the "worst NFT project ever," is making a comeback utilizing fractionalized nonfungible tokens (NFTs). After acquiring the project in 2022, CEO Giulio Xiloyannis recognized the need to revamp the artwork while preserving the infamous "Kevin" NFT as a symbol of resilience in the crypto industry. By fractionalizing NFT intellectual property, holders gain royalties whenever the monster's likeness is used outside the game, offering a unique model of IP ownership within blockchain gaming. Despite potential risks such as skewed holdings and governance challenges, Pixelmon has attracted significant interest, amassing over 1.12 million wallets and securing investments from several crypto firms, including Immutable and Animoca Brands.

Resurrection of the Notorious: Pixelmon Reinvents with Fractionalized NFTs

Once vilified as the "Worst NFT Project Ever," Pixelmon is staging a resurgence through the innovative concept of fractionalized nonfungible tokens (NFTs). This novel approach aims to transform the infamous project into a viable and lucrative venture.

The Infamous Genesis

Pixelmon's tumultuous genesis dates back to February 2021, when a group of developers launched a Pokemon-inspired game with high hopes. However, the project quickly spiraled into a mockery, generating $70 million in Ether (ETH) while delivering only 68 "questionable" NFT characters. One such character, Kevin, became the unfortunate mascot of what was deemed the "worst NFT project ever."

Enter Giulio Xiloyannis

In May 2022, Giulio Xiloyannis took the reins of Pixelmon, recognizing the potential for redemption. He acknowledged the need for a complete overhaul of the artwork, with the exception of Kevin, which he deemed a symbol of the resilience inherent in the crypto industry.

Fractionalizing NFTs: A Path to Royalties

Xiloyannis introduces the concept of fractionalized NFT IP, a mechanism that empowers NFT holders with ownership rights to intellectual property. He draws parallels to Nintendo, hypothetically granting ownership shares for Pikachu NFTs, entitling holders to royalties from its commercial endeavors.

Applying this model to Pixelmon, Xiloyannis envisions a future where NFT holders receive royalties whenever the likeness of their monsters is used outside of the game, akin to the royalties paid to the hypothetical Pikachu NFT holders.

A Shift in Focus: Free-to-Play Philosophy

Breaking away from the industry norm, Pixelmon will adopt a free-to-play model, eschewing gated access enforced by NFTs. Xiloyannis believes this strategy will unlock true adoption for blockchain-based games.

Risks of IP Ownership

While Xiloyannis firmly believes in the fractionalized IP model, he acknowledges potential risks. The success of a particular NFT is highly dependent on its popularity, highlighting the importance of strategic selection.

Ironically, the infamous Kevin NFT stands as a testament to this risk, as holders speculate on its future value based on its potential use within the game and beyond. However, Xiloyannis warns against blindly selecting a monster, comparing it to the unpredictable nature of selecting popular Pokemon NFTs before launch.

Governance and the Paradox of Disney

Pixelmon's decentralized governance model empowers its holders to vote on licensing agreements for the use of IP rights. This introduces a potential business risk, as holders may reject lucrative licensing opportunities, as exemplified by a hypothetical scenario where Disney's request to use a Pixelmon character in a Frozen movie is denied.

Xiloyannis remains optimistic, believing that the community's involvement ensures the longevity of the IP by preventing external entities from potentially damaging its reputation.

*Growth and Funding

Pixelmon's community has experienced significant growth over the past 18 months, boasting over 1.12 million wallets as of March 2023. The project has also secured funding through seed investment rounds, attracting firms such as Animoca Brands and Delphi Ventures. Notably, Immutable recently launched a $100 million fund, allocating a substantial portion to Pixelmon, underscoring the growing optimism surrounding the project's resurgence.

Conclusion

The upcoming launch of Pixelmon's "Battle Arena" and "Hunting Grounds" segments further solidifies its ambitions. The project's innovative approach to fractionalized NFTs and free-to-play gaming has garnered attention within the crypto industry. While risks remain, Pixelmon's redemption story showcases the dynamic and ever-evolving nature of the crypto space.