What is F1ZZ?
A streetwear fashion retail and resell platform with stock market characteristics of buying, selling, and issuance of shares of scarce viral commodities (SVC) take place. F1ZZ is a liquidity network for scarce viral commodities (SVC) by creating a perpetual contract that allows frictionless trading of semi-fungible tokens(SFT).
The maker function gives F1ZZ members access to Initial Sneaker offering (ISO): open-sourced manufacturing and design, providing F1ZZ members the opportunity to issue, vote, and invest in intrinsically valuable items upon production.
In the F1ZZ network, speculators may long/short a fraction of a SVC, buyers and sellers may trade a variety of SVC effortlessly, members may participate in the ISO (the maker function), and influencers may engage in the live streaming selling.
What is considered a scarce viral commodity (SVC)?
A scarce viral commodity is a tradable good that the public believes to have a higher resell value than its retail value. An example of such is the Adidas Campus Chinese New Year (2019) limited edition, which has already experienced a price premium of 1362% (from the retail price of $130 to resell price of $1,900). Other examples are: collectible toys, celebrity signed merchandises, and any tradable good with higher monetary value in the resell market.
F1ZZ’s definition of SVC is not confined to streetwear or any particular category of goods. However, all SVC should demonstrate some degree of gap between limited supply and unlimited demands.
What is the maker function? What is an ISO?
The maker function is disruptive for the traditional streetwear market. Any verified F1ZZ member with enough initial capital can launch his/her own SVC. The current streetwear market is highly monopolized: 96% of sneakers available on the secondary market are believed to be from the Nike group while the non-sneaker streetwear market is dominated by the Supreme brand. Regarding the market monopoly, F1ZZ aims to diversify by proposing the marker function.
With the maker function, F1ZZ serves as a middleman, bridging SVC issuers with manufacturers, designers, and, as a crowdfunding platform, connecting SVC issuers with interested F1ZZ members to invest early.
ISO is meant to target KOL and celebrities who may wish to release their own SVC, but anyone with capital and confident fan base may issue their assets in limited edition. Based on the smart contract, the revenue generated from the ISO will be divided based on each participant’s share
What’s the relationship between F1ZZ and TEM-PLATE?
TEM-PLATE is the prototype in which F1ZZ is built on. With more than 30,000 Stock Keeping Units (SKUs) and 10,000,000 USD worth of goods in stock, the TEM-PLATE APP by F1ZZ is one of the largest suppliers for fashion brands.
Similar to how Amazon opened up its APIs for external sites with AWS, F1ZZ lays out the missing protocol for a free peer-to-peer market. The marketplace built on F1ZZ tremendously lowers the threshold for each member to become a reseller and allows the customers to hold a stake in the issuance of new viral commodities.
Why integrating blockchain?
Blockchain enables F1ZZ to trade a fraction of SVC. The ERC-1155 token standard, developed by Enjin, allows the authenticator to manage multiple token types including fungible tokens, non-fungible tokens, and semi-fungible tokens (SFT). The SFT may look similar to any NFT from a developer’s perspective. However, unlike the unique NFT, SFT represents one unit of a larger number of scarce items. The issuance of more than one SFT to reflect one item will allow the trading of a fraction of an asset.
The SFT based digital market sets the basis for virtual trading. When each Stock Keeping Unit (SKU) enters the warehouse and passes the authenticity test, a digital twin is issued on the backstage under the depositor’s address. Upon confirmed withdrawal, the SFT identifies its latest owner’s address and generates the address for delivery. The SFT is then burned, leaving a trace for all the transactions that occurred with the item.
How does F1ZZ differ from other fashion platforms?
While StockX is the biggest secondary market for buying high demand sneakers and streetwear and GOAT is the biggest marketplace for authentic sneakers, F1ZZ differentiates by providing an ISO primary market feature and constructing a value network for all key players. F1ZZ’s inclusive network captures speculators, collectors, manufacturers, influencers, and authenticators, all into one ecosystem.
What does F1ZZ offer speculators?
Speculators no longer need to own shoes to trade shoes. Trade any SVC the same way one may trade any stocks. Speculators may invest in any SVC on F1ZZ in which they expect to have a higher monetary value in the future.
Trade a fraction of any SVC. By allowing products to be denominated in smaller units, it certainly allows more freedom with the diversification of a user’s “shoefolio” and opens up a million ways for speculators to hedge against the idiosyncratic risks.
Trade pairs include USDT, Bitcoin, and Fiats (certified users who have governmentissued IDs approved by the KYC system will have access to local fiat currencies based on their nationalities and local regulations).
What does F1ZZ offer buyers and sellers?
F1ZZ offers borderless and transparent transaction. F1ZZ’s authentication system disallows knockoffs from entering the network. Buyers can withdraw an integer amount of SVCs to receive the authenticated physical asset. Buyers can also stake F1ZZ coin with authenticators to earn Fiat interest.
F1ZZ lowers the entry barrier for resellers. While franchisees can afford to appoint professional authenticators from entering the warehouse, individual resellers who rely on average authenticators are often asked to pay a hefty collateral to the resell platforms to compensate for their higher chance of default. With F1ZZ, resellers only need to pay a one-time fee paid to the authenticators. F1ZZ helps individual resellers to alleviate their burden on warehouse logistics while providing them with increasing exposure to global buyers.
What is the Aqua SDK?
The Aqua SDK prepares the traditional online marketplace for the integration of SFT. F1ZZ aims to extend the scarcity liquidity network to commodities beyond the sneaker market. Merchants will be able to implement the Aqua SDK to digitize their SKUs and gain access to the open platform of users and markets on F1ZZ.
Users will be able to scroll through verified wallets on the Aqua Wallet and select the type of market that sells their desired items. Merchants may entrust the warehouse for authentication and logistics or propose creative ways to trade non-traditional assets, like encrypted art pieces.
What are some application scenarios for F1ZZ token?
F1ZZ members can spend F1ZZ tokens to participate in the ISO. The ticket price will be recycled to the F1ZZ foundation. For users who do not own fiat or stable coin as a payment option, they can purchase the amount in F1ZZ and pay 2/3 the transaction cost.
In the early stage, stable coin, bitcoin or fiat can be used for the purchase of items on the secondary market. As F1ZZ becomes more widely accepted, it will slowly replace the role of major coins to serve as a unit of account. Likewise, sellers will pay for the authenticator’s logistics with stable coin or Fiat.
The authenticator stakes the F1ZZ tokens from sellers as a collateral at the market rate, which are fully returned when the product is deemed authentic and reflected on-chain as SFT. Each authenticator will receive a percentage of the total transaction fees earned from the transaction based on the amount of F1ZZ that they currently hold. The first authenticator will be appointed by the F1ZZ foundation.
What is the roadmap for F1ZZ’s development?
2018 Q3: partnered with major suppliers, TEMP-LATE Launched
2019 Q1: generation of healthy revenue to cover expenditure
2019 Q2: wallet and markets development, global warehouse establishment
2019 Q3: Token Generation Event (TGE), launch secondary market Beta, integration of Aqua Wallet
2019 Q4: launching of four default marketplace, influencer engagement, release of Aqua SDK
2020 Q1: migration and integration of external marketplaces or scarce commodities.
Who built F1ZZ?
F1ZZ is built by a team of tech and fashion experts. The founding and advisory team is composed of designers from Farfetch, fashion & luxury industry professionals, serial blockchain startup founders, Amazon full-stack software development engineers, exAlibaba cross border supply-chain & logistics consultant, and an VC/PE operation head. Details of F1ZZ team can be found at the white paper or click here to be redirected (put a hyperlink to the whitepaper here).