Introduction:
Given the unenforceable nature of onchain royalties, and the recent refusal by NFT marketplaces to enforce these, traditional web3 business models that depended heavily on royalties now find themselves on shaky ground, casting doubts over their long-term viability. Against this backdrop, Punk 6529's hyper-cadence subscription model stands out as a fresh approach. It brilliantly bridges the needs of artists and collectors, presenting a sustainable model that could guide future web3 ventures in a royalty-free world. Let's dive into this case study to uncover the details of this innovative business and explore its potential in shaping the web3 world's future.
The Model:
- Hyper-Cadence Subscription: Collectors mint NFTs thrice a week at a consistent price of 0.06529eth. Rather than a sporadic release or arbitrary pricing, this model encourages regular participation from collectors and it creates a consistent flow of revenue which does not rely on royalties.
- Value Proposition: The primary service offered by The Memes is the ability for collectors to access and own digital art from a curated list of artists. With work from many top artists outside of the reach of people with lower budgets, the Memes allow folks to collect art from their favorite creators for an attractive price.
- TDH (Total Days Held) Score: A unique feature of this model is the measurement of art pieces or "cards" each collector holds and the time they've held those. Those with higher TDH scores are most likely to be given priority during mints (via allowlist selection), incentivizing collectors to participate consistently and hold onto their assets. It is a very clever way to implement what a lot of other projects try via "staking" but without having to give away any inflationary asset in return.
- Supply Adjustment: The Punk 6529 team astutely gauges market conditions, adjusting the supply for each mint accordingly. By ensuring the available cards are slightly less than the market demands, they protect the floor prices of each mint and help the positive flywheel effect of collecting and vaulting cards.
Curation as a Service:
Beyond mere transactional interactions, this business model also capitalizes on the growing demand for curated content. By handpicking artists and their work, Punk 6529 and the team guarantee collectors access to valuable and high-quality digital art.
Community as a Service:
Punk 6529's model extends beyond simple commerce. By bringing together individuals with a shared passion for digital art and memes, the platform fosters a sense of community. Engagements on platforms like Discord further cement the bond between collectors, leading to a more cohesive and interactive user base.
Why This Model is Sustainable:
1. Consistent Engagement: The thrice-weekly minting system ensures regular engagement from collectors, maintaining a consistent cash flow and user participation.
2. Balanced Supply-Demand: By adjusting the supply based on market conditions, the team avoids over-saturation within a single season, thus retaining the value of the NFTs.
3. Incentivized Participation: The TDH score system rewards loyal and active members, ensuring long-term participation.
4. Community Building: By fostering a sense of community, collectors are less likely to leave the platform, ensuring sustained engagement and growth.
Conclusion:
In an ever-evolving digital world, Punk 6529's business model showcases the confluence of commerce, curation, and community. By understanding market dynamics, appreciating the importance of community, and constantly innovating, this model is poised to lead the way in sustainable web3 business practices. Whether you're an artist or a web2 brand looking to enter the space and find new revenue lines, it's clear that Punk 6529's model offers a robust and potentially more sustainable approach to the world of NFTs in the post-royalty world we will now live in.