Thread by @justwavyj

There is a rising trend in NFTs that are making people thousands of dollars in passive income.

It is called Tokenomics - the convergence of DeFi and NFTs.

Here is the knowlege you need to get into a project with Tokenomics and start stacking passive income today 👇 🧵

1/ Crypto moves in cycles. Not just from a pure price standpoint, but also from an innovation lens.

@nbatopshot boomed with NFTs as collectibles, followed by pfp plays with Punks and @BoredApeYC, and then Gen Art with a percentage of Fidenza 938 aka "God Mode" selling for $8.5M

2/ The latest hypecycle merges NFTs with DeFi.

A project will airdrop/generate tokens that NFT holders can claim, which can yield a substantial amount of passive income. In some cases $300k+ per year.

@NathanCRoth passive yield power rankings 👇 💰

https://twitter.com/NathanCRoth/status/1446999690243977220?s=20

3/ @CyberKongz have established themselves as the top defi + NFT project.

@AnonymiceNFT, @RealSupDucks , and @StackedToads have all made a play for the number 2 spot.

Why do their tokens have value? Let's do a deep dive into the tokenomics of each.

4/ Genesis @CyberKongz can yield 10 $BANANA per day, for the next 10 years. Current price per $BANANA is $82

With these tokens you can give your Kong a name, change the bio, breed a baby CK, and use it in other not yet announced ways in their metaverse - probably for gaming.

5/ Each @AnonymiceNFT can generate 1 $CHEETH per day which has a current price of $78.

Anon dev team, 0% royalties, 100% on chain. The mechanics are interesting, but at a floor price of 10.5eth, what's the utility? Breeding and speculation is all I see.

https://twitter.com/hartnft/status/1445496084940218375?s=20

6/ Each @RealSupDucks generates 10 $VOLT per day, which has a current price of $1.09. The utility is still to be seen and they plan to use the token in the store, game, + boardwalk universe.

Ducks also have companion frogs. Everyone has utility questions:

https://twitter.com/RealSupDucks/status/1445932327415304195?s=20

7/ @StackedToads added gamification and DeFi yield farming to their token.

Unstacked Toads generate 5 $STACK/day and Stacked Toads generate 50 $STACK per day. $STACK has a current price of $1.23.

Utility focused on burning + staking tokenomics.

https://twitter.com/KeenanRIVALS/status/1446889561653714945?s=20

8/ Let me be clear: I think all these projects are interesting. But the value behind their tokens seems to be largely speculative vs backed by assets or revenue.

Do any of these projects offer more than breeding, staking, or tbd gaming/metaverse utility?

https://twitter.com/NathanCRoth/status/1446806983546396673?s=20

9/ Now let's evaluate @pixelvalut_ and @monkeybetdao tokenomics.

Both projects have DeFi tokens in their imminent future, $PUNKS & $MM

I see a big difference in those tokens verse the former ones.

They're backed by assets and gaming platforms.

10/ $PUNKS value can be derived from the 16 CyptoPunks that will be fractionalized.

As a holder of the @pixelvault_ Founders DAO NFT, I'll have a proportional ownership of the $PUNKS held by the DAO.

CryptoPunk value 📈 = $PUNKS value 📈

https://twitter.com/beaniemaxi/status/1436069445793992704?s=20

11/ $MM will be more valuable as the demand for the Monkey Bet gaming ecosystem grows.

This is similar to the other projects w tokenomics, but the difference is that there is already a gaming platform developed and in use @chimpbet.

Demand coming.

https://twitter.com/monkeybetdao/status/1436083317175107589?s=20

12/ The most anticipated token drop is from the @BoredApeYC.

What will the utility be? Tbd. But the range of possibilities is huge.

I'm confident that BAYC will deliver unique value not yet seen in the space. If done right, mutants likely undervalued.

https://twitter.com/BoredApeYC/status/1446569323552821248?s=20

13/ @BYOPills announced that Apostles will passively generate claimable tokens every day called $TRYP. The utility token will power the whole BYOPill universe.

Not sure this allows for any utility we haven't seen elsewhere, but the floor price shows people were bullish on this.

14/ As I evaluate NFT projects that have DeFi tokens - I'm going to focus on asset + income stream factors that will drive token price as I think that has more long term value.

As @iamDCinvestor points out, my strat may mean I miss some opportunities:

https://twitter.com/iamDCinvestor/status/1446978960877838340?s=20

15/ The Tokenomics emerging in the NFT space cannot be ignored any longer.

First it was fractionalization @fractional_art. Then staking and burning with @punkscomic. And now yield generation with @CyberKongz and others

Understanding this trend could make you a million dollars.

16/ What other projects have made notable tokenomic moves?

I couldn't cover them all and I want to make sure we're identifying innovative roadmaps and defi integrations so that we can enter good projects with conviction.

(That aren't out of reach like 200ETH floor Kongs)

Follow me @justwavyj for more writing on web3 innovation and NFTs.

I'm an active NFT collector who will soon have passive NFT investments. Will you?