Thread by @PastryEth

I’ve seen a lot of confusion recently regarding the Bakery NFTs.

For this reason, I have written an article detailing the inspiration behind the NFTs, our purposes for them, & our vision for the future.

First off, why?

.@CroissantEth and I have always been intrigued by the capabilities of NFTs.

It was incredible to watch the NFT boom unfold over the past year. Fortunes were both made and lost within a matter of minutes, a time reminiscent of DeFi summer.

Seeing the massive adoption and appeal NFTs had from the general population, I wanted to get involved.

However, I was left somewhat disappointed in the way the majority of NFT projects went about launching.

I’d estimate over 90% of the new projects launching were cash grabs.

The owners would hire the first artist they saw on fiver & pay him to spit out 10k images for some low effort collection

These projects would sell out in minutes, leaving lots of their investors rekt

I get that it is inevitable to stop clever opportunists from taking advantage of a booming sector like this, but even after the hype died out a little I still felt as though the full capabilities of NFTs were left unfulfilled.

NFTs can be used for much more than art.

If I were to make an NFT collection, I wanted to get this point across

In the back of my head, I knew that with the reach both @CroissantEth & I have on Twitter, we could easily throw together some shitty collection & likely sell out within minutes, raising 1k ETH in the process

However, we wanted to explore the possibilities of Web3.

We wanted something that was sustainable for the long term.

Something that would showcase the abilities of NFTs to harness a community of like-minded individuals, and how they empower creators to monetize their work.

Around this same time, we began experimenting with Unlock Protocol

If you aren’t familiar with them, they are essentially a protocol for memberships on the blockchain.

With Unlock, creators create a “lock”, a smart contract, & customize them to define terms of a membership

The locks can then be used by creators on platforms like websites, discord, shopify, discourse, etc. to create “token gated communities”.

If users want to gain access to these communities, they must purchase a “key” from the lock, which is a membership in the form of an NFT.

When visiting any of these platforms with content hidden behind these locks, the viewer will be prompted to connect their wallet in order to verify they own an NFT membership.

If they do own it, the content is unlocked. If not, they will be prompted to buy the NFT membership.

Pretty cool, right?

In an instant, a light bulb lit up above @CroissantEth & I’s heads

We deeply wanted to get involved in the NFTs space, but we wanted to bring something new to the table

With NFTs memberships, we finally knew how we could set ourselves apart from others

However, we didn’t want to stray too far from what NFT investors were used to, & if we stuck to a limited supply collection, we quickly ran into some problems

If these NFTs act as memberships, & the supply is limited, aren’t we essentially limiting how many ppl can be members?

The solution is to use what we have learned from the link between scarcity and value, and implement a time duration on top.

What exactly does this mean?

Our NFTs can essentially be split into 2 collections

One of them will have an unlimited supply, a fixed price, and a 30 day duration after which they can no longer be used to unlock content on our platforms.

Since these NFTs have unlimited supply, and they can always be bought for the same price…

There will be no incentive for actors to buy them for a higher price on secondary markets.

In this way, we are able to facilitate an unlimited amount of memberships without them being bid up to unreasonable prices and leaving smaller players out of the question.

These NFTs still come with a jpeg of a cute looking Croissant, however they all share the same traits in common, so there can be no rarity attributed to them.

This is something we will leave for the BakeryDAO NFTs

The BakeryDAO NFTs are the holy grail of the Bakery, and are something most NFT investors will be more familiar with.

These NFTs are limited in supply, each have their own unique traits, and act as 𝘭𝘪𝘧𝘦𝘵𝘪𝘮𝘦 memberships for everything in the Bakery.

BakeryDAO NFT holders will be able to make & vote on proposals to direct the protocol’s future.

This can include voting to receive a % of sales from the expiring NFTs, or change the pricing of them as more utility gets added (Wen Nansen-esque terminal for NFT holders?👀)

The process for building out the Bakery has been in the works for over a year now, and the idea is finally becoming a reality with the launch of the expiring NFTs

The interoperability NFTs provide us extreme flexibility, which we intend to use to drive more value to the NFTs.

Since you made it this far, i’ll drop some alpha..

We want the BakeryDAO NFTs to be in the hands of our most active members, so we may or may not be planning an airdrop to buyers of the expiring NFTs who are most active on all our platforms

Enjoy!🧁
bakerydao.me/website