I get excited about explosive projects in blockchain like Defy, the Metaverse, Non-Fungible Tokens and NFT’s. So naturally, we’ve asked ourselves the question:
Is there one particular project that combines all of those different sectors?
The answer seems to be LUKSO; a blockchain infrastructure that comes from the proposer of ERC20 ERC725 and web 3.js. A project coming from such a reputed blockchain veteran is expected to do well. But Lukso has actually done exceptionally well its token, LYXE, went from 35 cents in February 2020 to an all-time high of $40.59 a few days ago.
We’re talking about a 70x increase in price but what we like about Lukso is that it seems to be exactly what it claims to be; The beginning of a new digital economy.
So, has it really reached its full price potential at $40 or is there more room here to grow?
Lukso is dubbed as the blockchain for a new digital lifestyle and it seems to be laying the foundation for creative economies in the most cost effective and scalable manner possible. To understand what Lukso is and how it can work in the current system we should have a look at the digital fashion realm.
This includes digital clothes, NFT’s, customized avatars and of course many other variables.
Lukso have revealed a meta gala special digital cover that exemplifies the concept of lifestyle consumption which is really undergoing a paradigm shift right now with all of the available technologies that are out there really to influence this space.
This is exactly where Lukso fits in.
Lukso is a decentralized proof-of-work blockchain dwelling in the fashion industry and it aims to create a fully digital fashion experience. It aims also to create identities for users like avatars. You can also purchase digital clothing and build a digital economy for a 1.4 trillion dollar industry. Yes, it is that big.
Lukso’s mainnet is expected to go online in Q4 of 2021 and that’s where we currently find ourselves, so this thing is imminent and right around the corner.
The excitement around Lukso is also high right now because it may be the first blockchain in the world to adopt and run the Ethereum 2.0 proof of stake consensus algorithm. From a use case perspective alone Lukso has three major aspects that we feel it has going for it.
1. Identity or data governance
Lukso offers a self-sovereign universal and transferable identity. It enables users to prove their identity and take the information with them whenever they leave the chain.
2. Virtualization
Lukso maps physical commodities to virtual networks through so-called digital twin technology; continuous record keeping throughout a unique product’s lifespan defines its ownership, authenticity and value attached to a given product.
3. Tokenization of assets
This is based on the concept of digital collectibles and many of us are familiar with that in one form or another.
What is the current value proposition of Lukso?
we all know that digital collectibles can attract huge investments and revenue. Sometimes the euphoria helps to boost up that price tag. There’s certainly a lot of enthusiasm behind people that seem to be willing to pay quite a bit for digital collectibles.
The popular game fortnite for instance broke the record of the highest annual revenue ever made in gaming history by selling in-game digital collectibles.
You could argue that that’s the backbone of their revenue model their in-game digital collectible purchase structure. Lukso also allows developers and artists to display their digital lifestyle and build tokenized communities. These can be nfts they possess or limited edition products from major brands or even collectibles. Lukso has successfully conducted sales of some unique NFT’s.
The latest one is lambada dyed red, white and blue is a digital dress created by Narrow Future in solidarity with the trans community and remembering the lives lost to anti-trans violence in America.
This non-fungible token has also featured as a cover of the digital issue of the very popular v magazine.
Lukso also has the next generation of sports collectibles, fantasy football and interactive memorabilia covered.
Lukso has also released NFT collectibles of fashion icon Carl lagerfield with a hashtag “embrace the present and invent the future” these collectibles were sold on dematerialized within a minute.
That’s within one minute of launch!
Lukso supports creators to have full control and continuity over their digital profiles and the attached reputation they have gained correspondingly over time.
That’s why famous artists are trying to build their digital presence specifically using Lukso as a preferred platform.
A great thing about Lukso is that the team is not anonymous, this can be a deal breaker.
It’s never a good indication when a project has its team members hide behind anonymity; not the case with Lukso.
This by extension builds our trust in the project and what they’re trying to accomplish.
Members on board include Fabian Vogelsteller; the founder who is also one of the authors of the ERC20 token standard which opened up the ICO wave in 2017.
Marjorie Hernandez is the co-founder of Lukso. She created the innovation lab of Ernst and Young in Berlin which is a major player in Self-sovereign Identity
Advisors of Lukso include heavyweights like Daniel Heaf from Nike, Dr Ana Trbovich the co-founder of energy web chain and Grid Singularity, Chanel, Instagram, Blackrock Deutsche bank and others.
Tokenomics
Let’s take a look at the tokenomics of Lukso. LYXE; the native token of Lukso is used as a transaction fee on the Lukso blockchain. It’ss given as staking rewards for production of blocks. it has a circulating supply of 15 million and has a supply cap of 100 million tokens.
The token distribution after the Main Net is also very promising. Lukso has reserved a mammoth 40% for ecosystem development, leaving just 5% with the team and developers.
Compares to other projects which, on average, reserve about 25% for the team, you can see that Lukso is a beacon of decentralization.
At the time of this article LYXE has a market cap of $400 million dollars. We feel there is still much more room to grow.
Growth and longevity of the project
we feel that there’s huge industry potential the fashion industry has a global market value of $760 billion, that’s the current figure for 2021. Apparel, accessories and footwear are the top E-commerce sectors in the world and the ever-growing need for innovations in the fashion industry is not going to slow down for the foreseeable future.
Furthermore the sector is projected to grow to $1 trillion by 2025. So if Lukso could capture just 10% of the sector, hypothetically speaking, it would be 250 times the current value of Lukso.
It also allows an easy transition of any project from the Ethereum Mainnet to the Lukso blockchain by way of E.V.M compatibility.
This is a key aspect for Lukso to become an incubator for projects, ideas and digital standards.
There are definitely some notable partnerships to mention; Lukso also has some significant collaborators it worked recently, for example, with Helsinki – the world’s most sustainable fashion event.
There are many other partners that you can also read about on their website Lukso.network
Competition
As far as competitors go as of right now Lukso doesn’t seem to have any major ones however LVMH group is developing a consortium for blockchain called Aura. Aura will be used to track and trace luxury goods from raw materials, all the way to the point of sale, including second-hand markets.
But Lukso does more than just tracking of goods which effectively putsit so far ahead in that particular race. So at least at the moment, there doesn’t seem to be too many other competitors, if any.
When is their mainnet happening?
Lukso is still operating in test net phase and is yet to switch to mainnet. The team has conveyed the mainnet migration in Q4 of this year which we are currently in. Although we still don’t know how smooth it’s all going to be.
The project has a strong team led by none other than Fabian Vogelsteller so our expectations are actually reasonably high.
LYXE is the token in circulation and is still an ERC20 token nevertheless, the team has assured a smooth migration to LYX token.
Their stated mission is to create a decentralized future-friendly and transparent ecosystem that supports the new fashion industry landscape. They’ve got a great team, a great vision, great developers and some phenomenal partners so this is certainly one that we’re going to be keeping on our radar,