CEO of Pixelmon places a hefty wager on the revival of fractionalized NFTs

The crypto project known as Pixelmon, which gained infamy as the “worst NFT project ever,” is making a comeback by turning to fractionalized nonfungible tokens (NFTs). The project, launched in February 2021, initially promised a Pokemon-inspired game where players could collect, trade, train, and battle Pixelmon monsters. However, it quickly became a laughingstock after raising $70 million in Ether and revealing 68 questionable NFT characters, including the infamous “Kevin” character.
When CEO Giulio Xiloyannis acquired the Pixelmon project in May 2022, he recognized that all the artwork needed to be redone to revive the project. The only NFT that would remain untouched was Kevin, as it represented the resilience of the crypto community and should never be altered.
Xiloyannis explained the concept of fractionalized NFT IP, using Pokemon as an example to illustrate how Pixelmon fits into the world of blockchain gaming, NFTs, and intellectual property rights. He compared owning a Pikachu NFT to having a 1% right to royalties from Pikachu’s usage, such as when it appears on merchandise or in other games.
Unlike other NFT-based blockchain games, Pixelmon will be completely free to play, which Xiloyannis believes is the key to real adoption among blockchain-based games. By owning a Pixelmon NFT, holders are entitled to royalties whenever the monster’s likeness is used outside of the game. These royalties are paid out in the form of the MON token, distributed based on the rarity of the NFTs.
Xiloyannis acknowledged the risks associated with IP ownership, including the possibility of the game not gaining traction and NFT holders not receiving sufficient reimbursement. He also highlighted the subjective nature of fractionalized IP ownership, where the value of an asset depends on its popularity within and outside the game. The “Kevin” NFT, despite its infamy, has become sought-after as holders speculate on its potential usage.
The decentralized governance model of Pixelmon allows the community of holders to control the direction of the project. Xiloyannis believes this approach is better for the longevity of the IP compared to letting a centralized authority make decisions. The Mon Protocol community has grown significantly over the past 18 months, with over 1.12 million wallets in March 2023.
The game’s “Battle Arena” element is set to launch later this year, followed by the “Hunting Grounds” segment in 2025. Several crypto firms, including Immutable and Animoca Brands, are optimistic about Pixelmon’s future and have invested in the project.