The new trading model combines the NFT and Defi
Tokenworks NFT strategy tokens were officially launched on Opensea, marking significant development in the way digital assets are exchanged. These tokens represent a new approach that merges NFT collection with automated trading strategies. The system works through what is called a “steering wheel” effect, where assets are automatically managed to generate value for token holders.
I think that represents an interesting change in the way people see NFT. They are no longer just digital works of art in wallets. With this model, they become active investment vehicles which can potentially generate yields via automated trading cycles.
How the automated system works
The mechanisms are actually quite simple when you break them down. Each NFT strategy token corresponds to a specific NFT collection on an individual basis. When the Treasury accumulates enough ETH to buy the cheapest article in this collection, the intelligent contract automatically buys it and does it immediately with an increase of 20%.
When this NFT sells, all profits go to the purchase and combustion of more NFT strategy tokens. This creates a continuous cycle where the system continues to acquire NFT, mark them and use the profits to reduce the tokens supply. It is a self-perpetuation mechanism that should theoretically create value over time.
Market performance and tokens economics
The Punkstr token, which focuses on cryptopunks, has shown impressive market performance since its launch in September. With a market capitalization reaching $ 87.2 million and a daily negotiation volume around 1.5 million dollars, it is clear that there is a significant interest in this model. The token has experienced a 392% increase since its initial launch, although it has experienced minor fluctuations recently.
Opensea softened the agreement by adding a pool of rewards of 20 ETH for selected tokens, including Punkstr, Pudgystr and several others. This additional incentive could help stimulate adoption and commercial activity.
Structure of costs and royalties
The costs structure is designed to support several stakeholders. Each token exchange results in costs of 10%, the majority (8%) going directly to the Treasury of the ETH which finances NFT purchases. The remaining 2% is divided between supporters and the Tokenworks team.
What is particularly interesting is how the model addresses the current debate of royalties in the NFT space. For the other NFT strategy tokens beyond Punkstr, 1% of the costs go to collection owners as a royalty. This could help the creators who have been affected by the reduction of the application of the Royapes on the markets.
Tokenworks said they wanted to ensure that the value dates back to project creators and to the artists who have been gradually excluded from fees. It is a thoughtful approach that recognizes the wider ecosystem beyond token holders.
This evolution seems to change the way people interact with NFT. Instead of static property, we see dynamic management strategies applied to digital collections. Whether it becomes a lasting trend or another experience remains to be seen, but the initial market response suggests that there is a real interest in these hybrid financial instruments.