Art Gobblers ignited the NFT market but its flywheel effect may not kick in

Not surprisingly, Art Gobblers has become a hot spot in the NFT market. In the past half day, the transaction volume displayed by Art Gobblers on the blur NFT platform has exceeded 13,700 ETH ($21.6 million), which is about BAYC 4 times the trading data in the past week.

The reason for the popularity of Art Gobblers is also easy to understand. It was carefully designed by Paradigm, a top VC team in the industry, and Justin Roiland, the co-creator of the well-known animation “Rick and Morty” was also deeply involved, which made Art Gobblers a golden Spoon was born NFT project.

In addition, Art Gobblers has many whitelists provided to NFT KOLs, which naturally brings more exposure to them.

So, can Art Gobblers still participate?

Since Art Gobblers officially released the first tweet in June this year, Paradigm has published 4 articles related to Art Gobblers on its official website in a row, and I am tracking it myself. Let me briefly talk about a few of my concerns:

  1. The initial price of NFTs is a bit too high (the current floor price is over 13 E), which means that the trial-and-error cost of non-whitelisted people is too high.

  2. The key point of Art Gobblers’ flywheel theory is that there are artists willing to buy goo tokens and spend goo tokens to paint on blank pages, which requires collectors to be willing to spend money to buy works created by these artists, These two points are very uncertain at present.

  3. The whole game is designed to be very complex, and ordinary Crypto players can easily be cut without being familiar with the rules. For example, if you only buy goo tokens without holding Gobbler NFT, then your goo tokens will be continuously diluted, and if a centralized exchange irresponsibly lists goo, the function of accelerating the issuance tokens, the traders on that platform would fall victim. Therefore, the design of the rules has led to the fact that the entire game of Art Gobblers can only be limited to a very small on-chain Crypto circle.

  4. Paradigm and Justin Roiland have clearly mentioned that the entire project has been delivered, and there will be no further updates. This has at least two meanings. The first is to explain the experimental nature of the project to reduce market expectations, and the second is to clear it up in advance. Liability, even if the project fails, they can not be held responsible for related losses.

The specific rules of the Art Gobblers on-chain game

After understanding these concerns, let’s briefly review the specific rules of the entire Art Gobblers on-chain game. There are two very interesting new mechanisms involved – (1) Variable Rate Progressive Dutch Auction (VRGDA) ), which is a mechanism designed to sell “illiquid assets”, (2) GOO (Gradual Ownership Optimization) token issuance mechanism, which is a token issuance mechanism designed to tie NFTs and the token community together .

In the Art Gobblers project, the release of Gobbler and Pages uses the VRGDA method to conduct auctions. To put it simply, the auction price is increased when the market demand is too high and the sales are advanced, and the auction price is lowered when the market demand declines and the sales are lagging behind. This dynamic adjustment of pricing according to the market supply and demand relationship provides the market with a complex game space.

In the early stages of the game, due to the rise in short-term attention, this may trigger fomo, which will push up the price of Gobblers NFT, however, as the market cools, the auction price will also decrease, which may mean larger price fluctuations .

Then there are the specific issuance rules for Art Gobblers NFT and goo tokens:

  1. Initially, 2,000 Art Gobblers were issued through free mint, of which 1,700 were allocated to the community consisting of artists, collectors, builders, cooperative KOLs, etc., and the remaining 300 were reserved for the core team (Paradigm and Justin Roiland).

  2. Over the next ten years, Art Gobblers will issue the remaining 8,000 Gobblers by auction, initially at a rate of about 200 per month, and over time the rate of release will slow down (note, Art Gobblers There is a similarity with Nouns’ distribution model, that is, out of every 10 newly minted Gobblers, 1 will belong to the team, and the other will be allocated to the community treasury address). , a legendary Gobbler will appear, which can only be obtained by burning a large number of ordinary Gobblers, and there are only 10 legendary Gobblers in total. Increase the fun of the game.

  3. In addition to the Gobbler NFT, there will also be an infinite blank page (Blank Pages) NFT. Initially, the blank pages created every day are 69 pages. They are all created through Goo tokens. After 8 months, new blank page NFTs are generated every day. Will be reduced to 10 pages and added at this constant rate (blank pages will not be teamed, but for every 10 newly created pages, 1 will be allocated to the community artist’s treasury pool)

  4. Goo tokens are continuously issued, and the speed of issuance will be faster and faster. It is for this reason that simply holding goo tokens is a very bad strategy. The goo token itself is not suitable for speculation, it is a utility token, each Art Gobblers NFT will have a multiplier (mult), which is related to the speed of its generation of new tokens, the relevant formula is as follows:

The issuance curve of goo tokens is as follows:

Will the flywheel of Art gobblers fail?

Art gobblers first provides artists with tools to draw various artworks. The drawing tool also records the entire creation process, so you can view the entire process when the artwork is completed. Compared with the very popular AICG, the tools provided by Art gobblers can It is very retro, but it may be very helpful for distinguishing handmade art from AI art.

For artists, they can publish their own creations on “pages” and cast them into unique NFTs, while from the collectors’ point of view, gobbler is equivalent to a museum NFT that they can use to “devour” artists Minting NFTs and exhibiting them is a very exciting experiment in the field of NFT collectibles.

Ideally, collectors would be interested in buying NFTs created by artists, which would motivate artists to create better NFT works, which could drive the development of the entire ecosystem.

But the fundamental question is, how to ensure that collectors have enough and continuous motivation to collect? Sadly, this is not explained clearly in the article published by Paradigm, which simply mentions this:

“As artists create cool art, the cultural relevance of Art Gobblers increases.
As cultural relevance grows, collectors’ demand for Gobbler art will be higher. “

This vague statement is not convincing. In the worst-case scenario, if the participants are mostly speculators, the experiment will likely fail (which is the main reason why Art Gobblers needs to carefully select participants when launching the community).

Therefore, for Art Gobblers’ on-chain art & game experiments, my personal suggestion is to study the rules first, then observe the development of the ecology, and then make appropriate decisions, rather than blindly participating.

Related Reading:

1. New Token Issuance Mechanism – Variable Rate GDAs

2. One article to understand the “GOO” token issuance mechanism proposed by Paradigm

3. An article to understand the NFT experiment Art Gobblers launched by Paradigm


Related Posts