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DeGods Season 3: A Total Flop?

DeGods NFTs & $DUST Tanking

GM DOers! 😎

For the last month, DeGods (one of the most reputable NFT collections) has teased an upgrade: DeGods season 3. 👀

We’ve been monitoring the happenings closely 🔍 to see what’s on the menu, and discovered that:

  • DeGods is changing the art, something that’s never been done before by any other PFP collection at this scale. 🎨

  • Y00ts, a derivative project of DeGods, is moving from Polygon to Ethereum. ♻️

  • There’s a so-called Points Parlor – a prize pool where DeGods holders can win $DUST. 🤑

Despite the hype for this upgrade, upon launch, the floor price of DeGods NFTs took a big hit…

And so did the $DUST token (DeGods’ ecosystem token).

Now… I’ve probably confused you a lot… WTF is DeGods? WTF is y00ts? WTF is $DUST? WTF is Points Parlor? And WHY TF IS EVERYTHING TANKING?

Let me explain. But first, a reminder that the discount to our Web3 Investing Masterclass – our new flagship product and the #1 investing resource in the space – expires TOMORROW. ⏳

Everyone gets an early-bird 33% discount, PROs get a 50% discount & Founding members get the masterclass 100% free!

To claim your discount, follow the button below & connect your wallet! 

P.S. - If you’re a PRO/Founding member, you need a PRO/Founders Pass in your wallet to unlock this discount. 

If you don’t hold your NFT, simply open the emails we sent you over the weekend & find the link to your discount! 

And if you’re not a paying member yet, you may consider going PRO here to take advantage of the juicy discount. 😏

Hurry though… Time’s ticking. ⏰

Let’s turn our focus back to DeGods.👇

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What is DeGods? 💀

DeGods is a PFP collection of 10,000 unique NFTs initially built on the Solana blockchain, which later migrated over to Ethereum – after the FTX collapse, when Solana took a hit in onchain activity.

Each DeGod has 4-7 traits from 8 attributes, making each unique. Here’s an example of the art:

Since its inception, the DeGods ecosystem has grown. It’s now made of:

  • $DUST: A token obtained from staking your DeGod, used as a currency in the DeGods store.

  • DeGods store: A marketplace for digital collectibles.

  • DeDAO: A decentralized organization that guides the project.

  • Y00ts: A derivative project to DeGods aimed to lower the barrier of entry for newcomers in the DeGods ecosystem.

  • DeGods Pro Basketball Team: DeGods bought a basketball team in the Big3 league for $500k after which VeeFriends, Moonbirds and DOGE all purchased teams as well.

  • DeID: A decentralized identity which enables DeGods holders to access their discord and be automatically followed by DeGods on Twitter when they buy an NFT.

  • DeGods on Bitcoin: Inscriptions of DeGods that were initially burned, inscribed as Ordinals on the Bitcoin blockchain.

DeGods’ End Goal and Business Objectives:

Community and Governance 👥

  • Creating an engaged community with real influence via DeDAO.

Monetization and Value Creation 🚀

  • Utilizing the DUST token and the ecosystem for real-world and digital purchases.

Building Products for Other NFT Projects 🧩

  • Under DeLabs, aiming to build software and tools for other NFT projects.

In short, DeGods is a PFP project aimed at building a curated community of builders and creators. 

And they’ve introduced DeGods Season 3 to get closer to achieving this. Let’s explore the nitty-gritty. 👇

DeGods Season 3 🤔

After lots of anticipation… 

… DeGods 3 was announced! 

There are 3 things that stood out from this upgrade:

  1. They’re adding 20,000 new DeGods – Any DeGods holder can now choose between 4 different Season 3 DeGods. Each DeGod holder will still hold 1 NFT, hence why it won’t dilute the collection.

  1. A lot of traits from current DeGods will be either removed or changed due to community feedback.

  2. Any DeGod (all are men right now) can be redeemed 1:1 for a female version – this is really awesome to see. We need more women present in this space.

As of Sunday, the 13th of August, all DeGods holders can update their DeGods to Season III for 333 $DUST (this price will go down over time but the sooner you upgrade, the better, or so they say).

100% of the $DUST collected will go to the Points Parlor prize pool – where DeGods owners can win the $DUST back later at some point.

But there’s a catch: only those who upgrade their DeGods can participate. And this has sparked some backlash from current holders:

Interestingly, Frank (founder of DeGods), responded to this member by saying:

  • You can upgrade your DeGod later on for less $DUST.

  • If you dislike this decision, you can sell your DeGods and join another community.

  • We’re not using the money for ourselves, but need the liquidity now to pay back the grant that they’re returning to Polygon for the y00ts migration (which we’ll talk about soon).

This is BAD. DeGods are essentially asking their holders to pay 333 $DUST ($750 at the time of the upgrade) just because they need liquidity to migrate y00ts (a collection that has done next to 0) AGAIN.

And when the community complains, they’re response is: Sell your DeGods and move to another project. 😬

So they did…

And they also sold $DUST…

Now, DeGods said that the 333 $DUST price to upgrade would go down over time. But since the Season 3 announcement, the $DUST price is down over 33% (from $2.5 to $1.6). 

I don’t think this is what DeGods had in mind when they said ‘prices would go down over time’. 😅

But this is a result of the community’s backlash, and it looks like yet another PFP project bites the dust (pun intended). Sad to see.

Update: due to the community backlash, DeGods said they ‘pivoted’ their Season 3 approach and they’re now calling the upgrade a ‘downgrade’.

This isn’t actually a different approach, strategy or process. It’s just a change of wording to get DeGods holders to lower their expectations.

They essentially let their community down and then told them: lower your expectations. Not a great look. 

This Apple analogy is gold 😅👇

Let’s talk about why DeGods wanted to charge 333 $DUST in the first place 👇

Catch up on the latest news in web3

DeGods 3 is just one of the many things that happened in web3 last week. 

Get the lowdown on everything by listening to our Weekly Rollup on your favorite podcast platform:

YouTube | Spotify | Apple Podcasts

Y00ts Moving from Polygon to Ethereum ♻️

Y00ts is a derivative project to DeGods, also aimed to build a community called y00topia. 

Y00ts hasn’t done much since its inception (2022), but it caught the attention of many when it migrated from Solana to Polygon in March this year.

Polygon paid them a grant of $3 million for them to do so.

Now, they’re migrating again, this time to Ethereum (where DeGods migrated in March).

There’s not much more to y00ts than that… and even others are wondering what they’ve achieved so far since they’ve been around (apart from building a kinda cool community).

The answer is: nothing. And Frank agrees:

All they’ve done so far is waste their community’s time and money and keep moving their NFTs across chains. 

But that’s not even the worst (not many people care about y00ts anyway). 

The thing that caused this community uproar in the first place is the fact that DeGods is asking their long-term holders for $DUST, so they have enough liquidity to pay back the grant to Polygon, so they can migrate to Ethereum.

Essentially, DeGods holders are paying for a rather worthless project to move chains again, with no real purpose.

Naturally, people are pissed. So is this the end for DeGods?

No way… The fact that the community is so outspoken says a lot about the project: The community is strong – and that’s not something to overlook. 

In web3, a community can really take you from 0 to 1 really quickly if you give them a reason to support you. Here’s what we think DeGods should do moving forwards. 👇

Key Takeaways for DOers 🤩

First of all, we must acknowledge Frank’s honesty & communication with the community, which is rare from a founder and should be appreciated. 👏

But it’s not nearly enough. In the long run, DeGods really needs to figure out a sustainable business model where they can generate enough revenue.

Right now, they were forced to extract liquidity from the community (by requiring the 333 $DUST for the upgrade) to pay back the grant they’ve received from Polygon.

And the backlash was evident. 

So what should be next up for DeGods? 

Leverage your community to build a valuable product or service.

Let’s start with a couple of examples:

  • Pudgy Penguins: Makes revenue from selling toys

  • VeeFriends: Makes revenue from hosting VeeCon + selling toys

These 2 have built really valuable products that people want to use. DeGods need to figure something out too.

I’m not saying they need to launch toys or host an event. I’m saying that they need to figure out:

  • What does their community really want?

  • What’s a sustainable product?

  • What are they realistically capable of building, with current resources?

Whether they build a media company, launch toys, host IRL conferences or buy an arena is irrelevant. 

But whatever it is, they should only do it if it resonates with their community. 

If they love golf, buy a golf course.
If they love to travel buy a hotel.
If they love digital experiences, build it.

Just please, DON’T build a metaverse. 🙏

Btw… At Web3 Academy, we’ve made it our mission to help you invest successfully in web3! (So you don’t get caught up in the hype like people did here with DeGods 😏).

We launched a Web3 Investing Masterclass this week. 7 modules, 25 lessons and 5 hours of pure gold are at your fingertips, ready to make you a way more successful investor in this space.

I won’t describe all the benefits for you here. I’ll let you check it out yourself. 

P.S. - Everyone gets an early-bird 33% discount. 

PRO members get 50% off & Founding members get 100% off. 

All you need to do is click the button below & connect your wallet: 

Remember: This discount expires tomorrow! ⏳

Note for PRO & Founding members: Only if you hold a PRO/Founders Pass in your wallet will the discount be redeemable. 

If you don’t, please check your inbox for our latest PRO Report (from Thursday) or the emails we sent over the weekend, where you’ll find the link to the discounted Web3 Investing Masterclass. 🫡💜

Thanks for reading. And remember, you're strong, you’re powerful, you’re alpha! ❤️

See you soon. ✌️

Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.