Founder's NFTs Backed by Pawth

Nothing in this discussion is financial advice!

Hi all,
As one of my projects for the Pawthereum ecosystem (the smaller one), I have been coding a smart contract that should allow us to back the Founder’s NFTs by a certain amount of Pawth. Since dev wallet funds are on the lower side, I’m thinking that we could send 2.5 million Pawth to the smart contract, and users can swap their Founder’s NFT for a percentage of Pawth if they desire. If there is a Founder’s NFT in the swap contract already, someone could exchange Pawth for a Founders. Basically, if the community is interested in this idea and approves it, I can try launching the contract to the Ethereum mainnet to do the final test. Gas fees are very low at the moment, so it’s a good time to launch smart contracts on Eth. After that, I would need to build a front end interface for swapping.

This idea is based off of a community member suggestion. It follows the Enjin ERC1155 strategy of guaranteeing a minimum value of some amount of the native token, but the actual trading value of the NFT could be much higher on OpenSea and such pending supply/demand. The actual mechanics of the smart contract are designed to increase the total amount of Pawth in the contract over time. Of course, this idea is to bring another source of value to the Founder’s NFT holders, as we want our products to be high quality. The artwork of the Founder’s token is high quality, but I think we could benefit from some more value.

Thanks for reading,
Kevin

2 Likes

This is definitely a great proposal and in any case a step in the good direction.

Buying the NFT now needs a bit more stimulation/incentive. I will buy mine at some point but I’d rather buy Pawth today with my fiat. But if at some point I can interchange pawth for the nft (and vice versa if I ever wanted to), that will definitely help me in adopting one.

If today I could deposit e.g. 500k PAWTH in exchange for the NFT, I would do that (if I had the guarantee I could swap back). If this is combined with some kind of lockup period (e.g. 6 months), this could also be a way for people to lock up their PAWTH and show their dedication to the project.

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I should clarify, the smart contract is planned to start with Pawth, and not any NFTs. One could only exchange Pawth for an NFT if someone had already swapped, thus adding an NFT to the swap contract. Hopes that makes sense. Only 15/99 have been minted at the moment: https://etherscan.io/token/0xa9480e2e4ba1caf3d67e98feb96e57caf5ca7768

Thanks for the clarification. Makes complete sense indeed.