A US$3 million incentive to lure a major non-fungible token (NFT) project from one blockchain to another appears to have brought consequences some may not have expected. 

According to data from Forkast Labs’ NFT index — a measure of the performance of the top tokenized assets across all blockchain networks — Polygon’s seven-figure transfer to DeLabs in January to move y00ts over to its blockchain may have cost its own users and ultimately its own ecosystem.

In recent weeks, NFT titans y00ts and DeGods started migrating from the Solana blockchain. DeLabs, the Los Angeles-based startup behind both projects, moved y00ts to Polygon, while DeGods ventured on to “explore new opportunities” on Ethereum. The allure of being in the company of the biggest brands in the world, including Disney, Starbucks, Reddit, Budweiser and countless more, is appealing to intellectual property-creating NFT projects. Many investors have wondered if these moves will pay off for the NFT projects.

(by Yehudah Petscher)