We have now acquired a Punk, our infrastructure is somewhat up and beautiful conversations are ongoing amongst builders in the community; excitement is high, euphoria is high. The value of our DAO cannot simply be measured in gains and there has been some conversation about aligning of incentives. Some are here to have fun while some may want profit. I want to say that I am totally onboard with messing around, but I want to point out one crucial point that we all must consider in the beginning stages of our treasury. It is always easier to get started with house money, a simple profitable win allows us the flexibility to take risks and be in position should opportunity arises. Working with a lump sum of 140 eth, lets say we buy 1 punk + 1 BAYC and have very little money left over. Well, our DAO either has to raise more funds (and we have not proven that we can do anything) or sit on our Blue chip assets, turning the DAO effectively into a community of builders and friends, but also an index fund. I am not saying one is right or wrong, and I have very little skin in the game so absolutely do not mind either way. I just wanted to put it out there that after trading for a while and onboarding others into NFT trading, the #1 rule I always followed was to be patient/careful with the initial investment in order to put your treasury in a position to win.
We have a community of smart, hardworking folks across different sectors, let's leverage them in the form of project proposals. I'd love to hear about how you intend to waste the treasury's money on the latest OHM fork, current trends and happenings in DEFI, and the current, ever-changing landscape of NFT's. Let's build each others knowledge, challenge our thesis', and win and lose together.
Source: Merge by Pak
By now if you want anything to do with NFT's you have to know about Pak.
His last project Lost Poets (which is still ongoing and only released 2 months ago) sold each 55,000 NFT's for 0.32 ETH, raking in a total of 17,600 eth. The floor for those NFTs sits comfortable above 0.6 eth while a good ~20% of those were converted into poets with a 1 eth floor. I know personally of 3 people who spent around 30+ eth to accumulate Lost Poet's pages. This put each of them in the top 100 holders. Top 100 holders were given origin poets which upon release were selling at 30-40 eth. You can ask our very own, @10xRay about this 🥳.
A core principle of all Pak projects is $ASH, the ability to burn his NFT's in exchange for $ASH. I won't get into it in detail here.
Today's Pak release will be unlimited starting at $300 a piece. Every Pak NFT that gets bought or moved into one wallet will be merged into itself, creating a bigger "mass" but existing as 1 single NFT. There are 2 components to this sale. First, the earlier you buy, the better price you get per mass, $300. It will increase over the duration of the 48-72 hour sale. Second, the more mass you buy, the bigger of a mass bonus you get. See figure to the right.
Leaderboard
The more pieces you buy the more bonus you get
Yolo 30 eth of the treasury to get into the top 100 holders and then scalp it as soon as we get into the money. As an alternative, we can bet a smaller amount like 1-5eth as a fun experiment.
Risk
Value
NFT's just came out of a 1 month bear market
eth pump would lower volume on nfts
If the Pak play doesnt work out, we may have to sell at breakeven-slight loss, or hold for longer than we intended to
It doesn't make sense, it's a ponzi, wtf? believe me I know... but it's Pak
Smaller eth masses may be easier to sell than a large chunk of 20+ eth mass
Uncertainty of the point of this project, why would people buy in without knowing the driving outcome
Although Pak has never failed, users/buyers grow more educated. With Lost Poets, scalping it within the first 3 days was the optimal play. This time around more sellers may be looking to turn around quickly. Run a simulation enough times and the outcome changes
If this is purely aesthetics and doesn't have utility...
When to sell is always harder than buying
A 30-40 eth investment to yield 10+ eth profit
blue chip
puts us in better position to acquire a bayc
Pak has never failed
Pak said it’s an SVG file so he can change the art anytime
Don't feel bad about rejecting a proposal. Challenge all ideas. Please provide feedback on how we can improve the proposal process/template as well. I personally think there's too many words in this proposal.
I don't think we'll have time for Pak as it releases in less than 90 minutes, but lets pretend we did and use it as experience going forward. Example: what risks/rewards did we miss when it's all said and done