FungoLabs Sets November 5 Encrypted NFT Auction
2 min read
Web3 provider FungoLabs plans to launch its Genesis NFT collection on November 5, 2026, introducing what FungoLabs describes as its first fully encrypted NFT collection on Ethereum, according to the FungoLabs Protocol Portal.
Using Zama’s Fully Homomorphic Encryption technology, NFT artwork remains visible to its holder, while character classes, statistics and elemental attributes are designed to remain encrypted on-chain. The system allows encrypted data to be processed without exposing its underlying values.
Genesis NFT Supply and Allocation
FungoLabs outlines a 3,232 NFT supply, divided between public buyers, eligible early participants and its development team.
How Confidential Bidding Works
The public auction uses cZAMA, a confidential ERC-20 wrapper associated with Zama’s utility token. Participants must convert eligible tokens into their shielded form through the Zama privacy interface before bidding.
Under the proposed auction mechanism, bids are evaluated to determine a uniform clearing price, with successful bidders paying that price and unused deposits returned.
Unsuccessful bids are designed to receive refunds rather than forfeiting their deposits. Unlike auctions displaying competing offers publicly, the encrypted process aims to conceal individual bid information during price discovery.
Token Rewards and Investor Risks
KuCoin contributor Bas reports that each Genesis NFT is expected to receive approximately 1.11 million $FUNGO tokens at a future Token Generation Event; the reporting does not independently establish an enforceable contractual entitlement.
FungoLabs also outlines a proposed revenue-sharing mechanism linked to transaction fees from its planned encrypted NFT launchpad. These incentives depend on future project developments rather than confirmed current payments.
The NFTs and associated tokens are speculative assets exposed to price volatility and smart-contract risks. They are not protected by conventional bank deposit insurance.
| Allocation Tier | NFT Count | Cost | Access |
|---|---|---|---|
| Public Auction | 2,500 | Market clearing price | Confidential cZAMA bids |
| Free Mint | 500 | Ethereum gas fees | Whitelist and nominees |
| Team Reserve | 232 | No sale price | Core development team |
What to Watch Next
The November 5 auction will test the proposed confidential bidding system. The subsequent Token Generation Event remains the next milestone for holders expecting $FUNGO distributions, with no confirmed date specified.
