A Transformative Deflationary strategy of Royal Ring
The recent developments in the utility NFT niche are showing signs of an obvious trend — the brightest minds working on value-centered projects are actively trying to offset the volatile nature of the NFT market. Simply put, we are in the middle of figuring out this newly-molded market and various projects are doing their best to accommodate for that turbulent price tag on their NFT collections.
In the case of the Royal Ring, we have devised a simple strategy that will address the aforementioned issue in its roots. Our deflationary strategy goes like this — we will utilize the entire commission from the resells on RR NFTs to do one thing, buy back the RR NFTs from the market and permanently burn them. This minimalistic approach to controlling our “fate” on the market goes deeper than one might imagine. Let’s break down the full extent of benefits from our deflationary method:
- A strong holding incentive
Every time we burn a repurchased NFT, the inherent value and benefit received from a single Royal Ring NFT item will increase proportionally. Since we offer 2 major channels of passive income to our holders (PSP and Stablecoin), decreasing the quantity of NFTs will directly result in an increased value for a single unit.
- Continuously climbing floor price
Since the total quantity of the collection will dynamically decrease over time, Royal Ring will become more scarce on the market, which in turn warrants a gradual increase in the floor price.
- Increased liquidity of your NFT asset
A guaranteed buyback offered by Royal Ring will automatically increase the liquidity of RR NFTs, which is a rare luxury in an extremely illiquid NFT market.
- Hold or don’t hold, you are a winner either way
The agile deflationary methodology creates a unique circumstance for the Royal Ring NFT holders — there is a minimal risk to purchasing the RR NFT due to successful outcomes in both selling and holding possibilities. If you decided to hold the RR NFT, the asset value will most likely increase through the rising demand and improving passive income. If you decide to sell, the price of your sale will surpass the initial purchase price.
The presented benefits of our strategy are not a short-term manipulation of the market. We plan to keep our eyes firmly on the pulse of the Royal Ring NFT collection. Royal Ring’s entire roadmap and future aspirations depend on the health of our collection and intend to sustain a high market price in perpetuity. Aside from the technical upside, this method is simply a gesture of goodwill towards our holding community. To Royal Ring, the sustainability and diligent progression of the roadmap are essential elements for success and we don’t mind devoting our major revenue stream of reselling commissions to our long-term!