$600k founder salary? only in NFTs 😅

X2Y2's royalties fiasco, Ragnarok's dwindling treasury & Hook's NFT Derivatives

Author

Lili (QueenBao)
August 29, 2022

GM Baos.

OpenSea volume may be low, but Bao vibes aren't. You ready for another killer week?

Today we cover:

  • X2Y2's creator royalties fiasco

  • Ragnarok's dwindling treasury

  • NFT Derivatives are here!

X2Y2's Community Backlash

NFT marketplace X2Y2 announced that they are letting buyers choose the amount of royalties they would like to give creators.

To put it nicely, the NFT community was not having it. I’ve never seen NFT Twitter this divided.

X2Y2 later clarified that they will enforce royalty for 1/1 art and plan to implement a ‘holders only’ voting system to decide as a group, if optional royalties should be enabled/disabled.

Most people were outraged, and took the tweet as X2Y2 getting rid of royalties altogether.

But X2Y2 doesn’t see it as eliminating them. Their intention? To give power back to the holders after the initial mint 👏

I can see X2Y2’s argument here. Because if there’s anything we’ve learned in this bear market, it’s that community building is so important.

Shifting the power back to the holders would incentivize NFT projects to do better for their community. And it would force projects to build out multiple streams of revenue rather than rely on royalties.

This also puts pressure on other marketplaces to adopt 0% fees.

What are your thoughts? Do you believe this move was inevitable?

—Cassidy

Ragnarok caught in 4k 📸

Make it all back in one trade, it’ll be fun they said 💀

I think it’s safe to say the team at Ragnarok did not have a good weekend. They were trending all over Twitter for the wrong reasons.

On Friday, the founder of Ragnarok issued an apology to the community, stating mistakes the team made over the last few months. Including trading with their treasury 👀

TDLR to the founder’s substack post:

  • Bought ETH multiple times as price kept falling (thinking it would benefit the project)

  • Sold their ETH position multiple times 🥲

  • Racked up $1.827 million in losses due to trading, slippage and fees

  • Millions were spent paying team members

  • Farfaron (founder) to not take pay for the next 4 months, ~$50,000 a month 😳

  • The trading losses have been fully repaid 🙏

  • Released their treasury wallet addresses for transparency

  • Will provide the community with regular updates and answer any questions 🫡

  • Gave a roadmap of the next 6-7 months

This isn’t the first time something like this has happened either 😱. ZachXBT’s thread on Ragnarok references another instance where someone was caught gambling with their treasury.

Trading isn’t for everyone 😅

I’m interested to see if Ragnarok will recover from this. All publicity is good publicity, right?

—Cassidy

NFT Derivatives are here!

No it ain't a derivative of a Doodle, Punk or Ape. We're talking derivatives in the traditional financial sense – agreements made on an underlying asset between two or more parties.

And guess what? It's arrived on-chain 😎

Hook Protocol has introduced the first ‘call option’ contracts on-chain to allow traders to exchange an NFT at an agreed price at a future date.

For a quick 101 on how call options work, hit this link. 

Here's what Hook plans to bring to web3:

  • Stabilise NFT prices and move the speculation to the derivative market

  • Allow treasuries to make gains with existing assets by selling covered call options

  • Enable active traders can bet on projects with less capital

BUT…for the uninitiated, buying and selling options should not be dabbled with lightly. Options have wide fluctuations in price & are risky and speccy in nature. So now, you're making a bet on a very risky underlying asset 😆

We love a lil' gamble though let's be real. This is an interesting step in the expansion of web3 to push the boundaries what is possible on-chain.

–Bernie

Bao-Sized News

Quirinus' Trading Notes

On the daily timeframe for ETHUSD, we could clearly see that it is very obvious in the market structure that we have since broke below the bullish trendline and also the formation of market structure of lower high as a confirmation of the bearish trend

On the daily timeframe, I have also drawn the previous resistance level which is clearly seen as the 1600 which would be my next preference area to short if I were to trade on the daily timeframe.

This is not financial advice, make sure to do your own research!

Made us Kek

Share this with a friend, you won't regret it 😉

–Lili