ARE NFTS MORE THAN JUST MODERN RUG PULLS?
Some ideas on how NFT projects can overcome the current rug pull status by three founders of a collection.
WHERE WE ARE TODAY
If you are loosely connected to the NFT space or even a project founder yourself you will undoubtedly have noticed that the market by now — May 2022 — reached a bit of a plateau: Big prominent projects like Moonbirds or BAYC backed by huge funds and/or prominent influencers drew liquidity out of the market by publishing more or less successful post-genesis collections.
And those and some others are just the collections that made it and established themselves. Over the course of the last 6 months users had to witness countless semi-serious projects that generated hype and equally much turnover. When benefits like airdrops or utilities are offered (if they made it from the roadmap), they are mostly digital. Usually connected to some sort of Play to Earn scheme, a land sale in the Metaverse or simply a follow-up collection. These low-effort, low-accountability initiatives lead to a growing skepticism against NFT projects. And rightfully so: the crypto-space is ideal for anonymous, low-accountability projects that turn into quick cash grabs, we’ve seen it countless times. To put it into easy words: It’s the Wild West. On top, this effect is accompanied by a maturing user base that knows how to separate legitimate projects from dubious ones. In conclusion, does that mean that all NFT projects are doomed?
Well, we think that no. Even so, it’s a tough spot right now, especially for smaller collections that haven’t yet built a large following or benefitted by legacy and/or prominent backing. Furthermore, we’re in a difficult market environment (Luna *cough*). We nonetheless believe we’re in a healthy market cleansing that will ultimately lead to strong, value-adding projects surviving only.
WE SEE TWO WAYS OUT
Ok, so who survives this disaster? We actually see two directions that offer light at the end of the tunnel — despite the pessimistic financial situation the market is currently in:
- Genuine longterm incentivized interactivity with a community of project followers & NFT holders
- Real-world utility — projects that connect your NFT with a tangible or experienceable actual asset which creates a desire to be part of the venture.
Wow, community and utility, how innovative, those are basically the two buzz-words you hear as key success drivers for projects. Bear with us though there are on the one hand projects who do this really well today and also some directions that have not been tapped into yet. Something we would like to change with Team Titans. After all, it is about the execution of either of the two (or both) that make projects successful in the long run.
INTERACTIVITY IN THE NFT SPACE
Let’s start with interactivity. What’s behind it: Projects that want to succeed now need to deliver more than just nice-looking JPGs that encourage 15-year-old buyers to flip quickly. Real community-building works through real value-adds that can easily survive a post-mint period of 2 months. It’s surprising that we haven’t seen more projects give their users real traceable and verifiable rights to participate in a project until now. After all, NFTs serve this possibility on a silver platter by their very nature as Non Fungible Tokens. NFTs as potential tokens for holders to have a say in the community and in the e.g. roadmap of a project enable real interactivity and awaken an intrinsic motivation to co-create that has rarely existed before:
Tell Me and I Forget; Teach Me and I May Remember; Involve Me and I Learn — Confucius
UTILITY IN THE NFT SPACE
Secondly, Utility: it describes the benefit, likely your USP that accompanies your NFT collection. What’s in for the user when purchasing an image from your collection, apart from the image itself? If collections have utilities, mostly today they are digital, like exclusive access to a certain space (e.g. a closed discord server with celebrities), a promising looking game or digital land in the metaverse, like Otherside. A few projects choose a promising way: Connect your NFT with a real world utility, e.g. receiving club access or earning money by going for a walk.
For us the magic lies in the connection of both aspects that lead to a desirable project.
HOW WE PURSUE A COMBINED APPROACH AT TEAM TITANS
Short background: We started Team Titans in the beginning of 2022. From the beginning we wanted to create a riddle based NFT collection that tells a story: The Titans are imprisoned in the Tartarus, the community must help them by solving riddles in order to finally free them (mint). Also since the beginning, we incorporate interactive elements such as the quests of the gods. By solving the quests of the gods, new characters and traits are unlocked by our followers and make it into the collection. This today already offers a level of interactivity. However, since currently for our followers not much is at stake or to gain we want to sharpen this approach: By developing our level of interactivity we want to transform our followers from low-involved bystanders into high-involved shareholders of our vision. How? Let them have a say — like for real and in everything.
WE ARE ESTABLISHING THE TEAM TITANS DAO
What’s the idea
Our idea is simple. Let our shareholders — the community — decide on everything project or money related that should happen, e.g. milestones on a roadmap, budget spending, etc. As an incentive, the entire amount of our public sale goes to a central fund and the community decides on the use of the entire budget from then on.
How does it work
All participants are entitled by — you guessed it — their NFTs. We link each piece in our collection to a voting right in the overall project. Using Snapshot or other solutions, we will offer a gas-free voting system tied to your NFTs and their rarity. This means that NFTs have different amounts of voting rights based on their uniqueness: we distinguish in different rarity tiers that determine the number of votes per NFT. To prevent individuals from significantly influencing the course of the project through excessive use of votes, we will have a simple and understandable whale control. Money will not be the main factor on voting power!
All sales out of the public mint plus a 5% royalty on every NFT sale go to the TEAM TITANS DAO
From low engagement to high interactivity
Some examples to back this up: we would like to keep the basic idea of interactivity with a low entry barrier, so there will still be decisions that every follower of our project will have a say in. But as the severity of the decisions increases, so does the exclusivity of the group of participants and will eventually shift to a closed system reserved for our NFT owners. Here’s a rough outline of how we envision this:
- Decide on next God to be challenged in the quest of the Gods
- Participate in quests of the Gods
- Decide on trait rarities
- Bring proposals and take a vote in our project development
- Collectively manage Team Titans DAO (NFT holders only)
JOIN TEAM TITANS AND HELP TO SHOW HOW BRIGHT THE FUTURE OF NFTS CAN LOOK LIKE
So we think that having decision power on the way and on the funds in the Team Titans DAO will attract the right individuals to our project and make Team Titans a promising and value-adding project that flourishes through the current difficult NFT and crypto environment.
If you like our vision and are interested in all the details we are working on, follow us on Twitter and share the article with everyone you know who suffered from JPEG rug-pulls in the past just like we did.