When Bitcoin was established in 2008, it held the singular function of operating as a peer to peer currency. Several forks of Bitcoin occurred to add smaller blocks, faster transactions, and privacy as options to improve upon the original technology.
As crypto currency evolved, so did the need for further functionality, smart contracts, and dApps. Cue Ethereum.
When Ethereum was created, it introduced a whole new suite of alternative coins & projects that each contained their own smart contract functionality, causing subsequent growth in the industry we know today.
NFTs as a Comparison
Similar to Bitcoin, when non-fungible tokens (NFTs) were first introduced, their usage was limited and they served only one purpose, to act as profile pictures.
The increasing popularity of NFTs sparked the development of new concepts, as artists and teams introduced more features. Just as the introduction of Ethereum expanded the uses of cryptocurrencies, this human element helped to drive the next generation of NFTs, providing greater utility and creating additional use cases for NFTs in general, beyond just static profile pictures
The Next Generation of NFTs
As there is a defined amount of traits in the Kanpai Panda collection, we can establish a hierarchy of the least occurring traits to the most occurring traits, and combinations of these.
By ordering these from least to most occurring, we can define the rarity of a collection.
With most collections (including NFTs), this rarity definition drives intrinsic value for specific pieces.
Typically though, when a collection was created or established, this order of rarity didn't change.
Introducing Dynamic Rarity
Kanpai Pandas have now created an opportunity for Panda holders to take rarity and rank into their own hands by participating in the Kanpai Panda's Dynamic Rarity system.
To participate in the system, users must spend newly introduced Panda Points on new traits in the Panda Lab, a product of the PPDEX. By purchasing and applying new traits, users can change their panda's rarity, and thus their on-chain metadata.
It is important to note that Panda Points are non-redeemable points that do not exist on any blockchain as a token (and cannot be traded on the open market. They are centralized utility that attach to the metadata of a Panda or wallet that participates in the Kanpai Panda ecosystem.