ZAFAR ✨

In my last post, I discussed how @FungoLabs plans to move beyond Genesis through its Launchpad and a game built around encrypted NFT attributes. But these plans raise an important question: what makes it possible for other projects to build on Fungo's infrastructure in the first place? The answer lies in its use of Fully Homomorphic Encryption (FHE) and how the technology changes what can be done with information stored in an NFT. Fungo's Genesis collection introduces two distinct layers: the Look and the Essence. The Look is the NFT's artwork, which the holder can view privately and choose to publish permanently. The Essence contains its class, four attributes and element. Unlike the artwork, these details remain encrypted on-chain. Fungo uses Zama's FHEVM to make this possible. What makes FHE particularly interesting is that smart contracts can perform computations on encrypted information without first decrypting it. This matters beyond keeping NFT details private. Consider the game Fungo plans to build around Genesis. Two players could compete using characters with different attributes. Ordinarily, revealing those statistics could expose each player's strengths and weaknesses. With FHE, a smart contract could compare the encrypted attributes, determine the outcome of a battle and settle it without making the underlying values public. The Genesis sealed-bid auction provides another practical example of this approach. Fungo has put 2,500 Genesis NFTs up for auction, with bids placed in cZAMA. During the bidding period, participants cannot see the prices or quantities submitted by others. When the auction closes, bids will be ranked from highest to lowest. Successful bidders will pay the same clearing price, while any excess amount will be refunded. There is a clear connection between these applications: information can remain private while still being used to carry out transactions and determine outcomes. This is also what gives the Fungo Launchpad its importance. Other studios will be able to create encrypted NFT collections on Ethereum and decide which attributes remain hidden, which can be revealed by holders and which become public at a specified time. The economics of the ecosystem are designed to involve Genesis holders in this expansion. $FUNGO has a fixed supply of 10 billion tokens, distributed as follows: 36% for Genesis NFT holders, 7% for Zama OG holders, 3% for the X Creator Campaign, 10% for community growth, 10% for the team and 34% for liquidity. Each Genesis NFT is allocated 1,113,861 $FUNGO at TGE. Holders are also entitled to 20% of Launchpad revenue, shared equally across the 3,232 NFTs, as well as between 5% and 20% of the token allocation from collections launched on the platform. The 300 million $FUNGO reserved for the X Creator Campaign also gives content creators a direct allocation within the project's distribution model. However, the important test is not how many features @FungoLabs can announce. It is whether the technology works reliably when other studios begin using it, whether developers find the Launchpad useful and whether players actually want the privacy features in their games. For instance, encrypted character attributes are interesting, but they need to create meaningful gameplay advantages. Similarly, the Launchpad needs more than the Genesis collection to demonstrate that other projects can build successful products with it. This is where Fungo's next phase becomes important. Genesis introduces the idea. The auction provides an early use case. The Launchpad is expected to open the infrastructure to other builders, while the planned game will test how encrypted attributes can be used in practice. That is the bigger idea behind Fungo Labs: not simply making NFTs whose information is hidden, but allowing that information to remain useful without being exposed to everyone.