What is Muse (MUSE)?

Quick Facts

  • Token name: Muse (MUSE)
  • Blockchain: Ethereum (ERC-20)
  • Primary protocol: NFT20 — a permissionless NFT DEX
  • Token role: Governance and fee-sharing token
  • DAO name: Muse DAO (formerly VeryNifty)
  • Key products: NFT20, Launch by MUSE, RolodETH, ETHCMD
  • GitHub: github.com/verynifty

Introduction

Muse (MUSE) is the governance and fee-sharing token powering Muse DAO, a community-owned NFT venture builder on Ethereum. The DAO's flagship product is NFT20, a decentralized exchange protocol that allows NFTs to be tokenized and traded as ERC-20 tokens on platforms like Uniswap and Sushiswap.

MUSE sits at the center of this ecosystem, giving holders a voice in governance and a share of protocol fees generated by the NFT20 DEX.

History & Background

Muse DAO grew out of the VeryNifty project, an NFT-based game launched in 2020 where virtual NFTs (vNFTs) mined MUSE tokens daily to level up. This game-driven distribution mechanism bootstrapped the initial community and token supply.

Over time, the team broadened its scope beyond the game, evolving into a full NFT venture builder under the Muse DAO banner. Additional tools like RolodETH (an open Ethereum address database) and ETHCMD (a developer-focused contract explorer) followed.

How Muse Works

NFT20 operates as a permissionless peer-to-peer protocol. Anyone holding an NFT can create a new pool or deposit their NFT into an existing one. In return, they receive ERC-20 token derivatives representing that NFT collection, which can be traded on any compatible DEX immediately.

Users can also swap one NFT for another within the same pool without needing to convert to ERC-20 first, streamlining the trading experience.

When NFT-to-NFT swaps occur, protocol fees are collected, converted to ETH, and used to buy MUSE on the open market. These MUSE tokens are then distributed to stakers, creating a direct link between protocol usage and token value.

Tokenomics

MUSE functions as both a governance token and a fee-sharing token. Holders can stake MUSE to receive a proportional share of fees collected across NFT20 pools. Liquidity providers on NFT20 can also earn MUSE rewards by staking their LP tokens in designated farming pools.

The DAO has voted on burning admin keys to prevent any further minting, making the token supply effectively fixed by community decision.

Circulating supply ? 676,784 MUSE
Reserved supply ? 0 MUSE
FOUNDATION
0x2Cf4eafE704CFAB84010F0fFbaa8F14F4a353Ead
0 MUSE
FOUNDATION
0xF8A8062b5EA668C427Ce5fFA9b00eD01A106e80d
0 MUSE
Total supply ? 676,784 MUSE
Max supply ? -- MUSE
Updated 24m ago

Ecosystem & Use Cases

  • NFT20 DEX: Tokenize and trade NFTs as ERC-20 derivatives
  • Launch by MUSE: A platform for NFT communities to launch new collections accepting custom tokens
  • RolodETH: An open-source database tagging Ethereum addresses with names and labels
  • ETHCMD: A developer tool for reading and writing Ethereum smart contracts

Team, Governance & Community

Muse DAO is a community-owned organization. Governance proposals and votes are used to guide protocol upgrades, fee parameters, and new product directions. The core team operates under the VeryNifty GitHub and communicates via Discord, Telegram, and Twitter (@NiftyMuseum).

The DAO has been transparent about its direction, publishing regular updates through Mirror and Medium.

Advantages

  • NFT liquidity solution: Converts illiquid NFTs into tradeable ERC-20 tokens
  • Permissionless: Anyone can create or join pools without gatekeepers
  • Real yield: Stakers earn fees from genuine protocol activity, not inflation
  • Diversified products: Multiple tools extend utility beyond a single protocol
  • Community governance: Token holders directly influence protocol decisions

Risks & Challenges

  • NFT market dependency: Protocol activity and fees are tied to broader NFT trading volumes
  • Competition: Other NFT fractionalization and liquidity protocols compete for the same use case
  • Small community size: A niche focus limits organic growth compared to larger DeFi protocols
  • Smart contract risk: As with all DeFi protocols, bugs or exploits remain a persistent concern

Long-Term Vision

Muse DAO positions itself as a long-term NFT infrastructure builder, aiming to develop and open-source tools that improve how NFTs are traded, valued, and discovered across EVM-compatible chains. By expanding beyond Ethereum and continuously shipping developer tooling, the DAO aspires to remain a foundational layer for the evolving NFT ecosystem.

Frequently Asked Questions

MUSE is the governance and fee-sharing token of Muse DAO. Holders can stake it to earn a share of protocol fees collected by the NFT20 DEX, and use it to vote on governance proposals.

NFT20 is a permissionless decentralized exchange protocol that lets users tokenize NFTs into ERC-20 derivatives. These derivative tokens can be traded instantly on DEXs like Uniswap or Sushiswap.

When NFT-to-NFT swaps occur on NFT20, fees are collected and converted to ETH, which is then used to buy MUSE on the open market. These MUSE tokens are distributed proportionally to stakers.

Muse DAO was created by the team behind the VeryNifty project, operating under the GitHub handle verynifty and the Twitter handle @NiftyMuseum. The DAO itself is community-owned and governed.

MUSE is an ERC-20 token deployed on the Ethereum blockchain at address 0xb6ca7399b4f9ca56fc27cbff44f4d2e4eef1fc81.

Beyond NFT20, the DAO has built Launch by MUSE (an NFT launch platform), RolodETH (an Ethereum address database), and ETHCMD (a smart contract developer tool).

Muse DAO passed a governance vote to burn the contract admin keys held by the DAO multi-sig, preventing any new MUSE from ever being minted in the future.

MUSE holders can participate by voting on governance proposals that shape the protocol's direction, fee structures, and new product initiatives. The community communicates through Discord and on-chain voting.