NFT IOU, a novel product by the OpenDAO
The OpenDAO ships a new product or partnership every 8 days on average.
When we have been “quiet” for a while, you can be certain that something big is on the horizon.
The problem today
Minting can be very stressful.
Stressful for the project owners, because many things could go wrong. The artists will be thinking what if I launch my NFT when there is a major world event happening? Would I make enough to at least cover my artists and dev’s salary?
It is also stressful for art collectors. Some collectors really love the art, but do not have the time to really grind for the whitelist.
But, what about projects that somehow do not make it to 721Starter for various reasons. Is there a platform that these projects can use?
What is a IOU?
IOU stands for I Owe You.
In the olden days, farmers sold corn IOU to fund their farms, and buyers were happy to buy them, as they required large stable supplies of corn for their supply chain.
What about a NFT IOU?
Never heard about this? Of course not.
This is invented here by The OpenDAO, and you heard it first!
721Max will be a NFT IOU platform, where we will issue an “IOU NFT” as a collateral of the real NFT before the mint.
What’s so special about a NFT IOU?
It is immediately tradeable, liquid, stakeable with all the properties of crypto assets.
What’s the catch?
The OpenDAO will collect a 1.5% royalty fee on the platform.
In return you will receive a nice artwork by the OpenDAO, so it does not look like a boring slip of paper 📝.
This NFT IOU is digitally settled
Don’t expect an NFT to be delivered to your house physically (physical settlement).
Neither do you expect to be paid the difference in the price between the NFT future price and the floor price (cash settlement).
This NFT IOU is digitally settled.
After 14 days of public mints, people who own the NFT IOU will be able to exchange for a real NFT within 14days.
721Max is designed for people to lock in on a position of NFT before its launch, potentially at a cheaper or higher price.
Possible revenue stream for the OpenDAO
1. 1.5% royalty fee on contracts sold.
2. The OpenDAO will be the default market maker.
Being a market maker, we can potentially earn the difference in price between the NFT IOU and the price we obtained the asset to digitally settle the contract.
3. And in some cases, the OpenDAO can take a loss due to the NFT mooning, before we can obtain the NFT for settlement.
Insurance fund backing
To safeguard the interest of the OpenDAO, 10% of all income generated will go to an insurance fund.
If the insurance fund cannot cover the liabilities, the OpenDAO treasury will be used.