How are proceeds from NFT sales used? | Project: Across the Face Osinachi

 How are proceeds from NFT sales used?

• Most project creators take a large percentage for themselves
• NounsDAO pools funds together from sales for community directives

 

• Affordable project: Across the Face by Osinachi

• NFT News
  • Rantum NFT Market Data,  Cryptoslam.io
  • NFT Headlines: 
    • OpenSea launches Seaport ​​marketplace protocol allowing NFT bartering
    • A Hacker Took Over NFT Artist Beeple's Twitter And Followers May Have Lost Hundreds of Thousands of Dollars 
    • Andreessen Horowitz Announces New $4.5 Billion Crypto Fund - Decrypt
    • Adam Neumann's blockchain-based redemption story now sponsored by a16z | TechCrunch 

 Rough Transcript:

[00:00:00] George: Today on all affordable

[00:00:41] NFTs. How

[00:00:43] are the proceeds from NFT sales actually used money goes in.

[00:00:49] Where does money go? We'll dive into Andrew, seeing some NFL?

[00:00:55] Andrew: Yeah, I do have a kind of thing. News from See, I guess a couple of big things. one thing, they just changed the look of the site around quite a bit. So if you haven't been on there recently should go check that out. A few new things. Definitely looks a little bit different, looks a little lot more social on the um, on the, uh, profile page. But other big news was they released their sea port protocol. Um, couple of things. Parts of this one. it's going to allow people to trade NFTs rather for ease. You'll be able to say that maybe you want to trade a uh, Uh, I don't know, gold ape or something, and say that you'll, that you'll take specific, uh, Zuki pieces and that's one to bring up.

[00:01:42] Now, try to go some high end.

[00:01:43] ones, you know, is what I was trying to say there. without going into the projects where we actually talk about them. But anyway, you'll be able to trade them for specific traits. The other part is that this protocol will allow other people to use kind of the back has already built to run their own third-party marketplaces. Um, so this is, I think it's actually pretty big news here, uh, will allow a lot of people to, um, uh, sort of, you know, give it a shot of making their own allowing that. But I think in the end, that competition will make, you know, as we've talked about having more marketplaces pushes these forward and I think, uh, improves the product in the end.

[00:02:21] So I'm excited to see what actually. It happens with the trading of NFPS. I know there have been out there. There's also been involving those are involved, but there's a lot of people that use those sites and, uh, in not great wage, which has made them a little hard for me to want to get into.

[00:02:39] But I would be interested in trying out trades on the open seat platform. or on a trusted marketplace was using their Yeah, the open-source part gets me excited because it's additional functionality that.

[00:02:54] George: could be brought to bear, I think, and even specific projects. and I've seen this probably

[00:02:59] most popularly in me, bits where me bits actually had the ability to

[00:03:04] post and trade and

[00:03:05] interact, um, the uh, the actual uh, from a back and forth.

[00:03:10] But this is across project, but also

[00:03:12] Andrew: Yeah. Yeah. We'll see what happens here. I think it's, it's, it's cool to see that that's coming from open. See, because it hasn't always been thought of as the most open platform. Um, but They are definitely, uh, opening up, uh, their backend here. And I'm excited Oh, I'm just excited to get farther and farther

[00:03:29] George: away from anything resembling money and more of a horse based anything that brings us towards that is

[00:03:35] Andrew: That's right. Trade your

[00:03:36] George: horse. Sorry, digital horse based economy.

[00:03:39] Andrew: Right. and of course we'll that, that will be the, the peg in the long run, right? Um, boy, my breath though.

[00:03:47] Yeah.

[00:03:50] All right, we've got some other news here. We've got uh, big Crip, or sorry, big a VC firm. They have launched any new $4.5 billion crypto fund that is billion with a B that is huge money. Um, you know, it's not necessarily a NFTE specific, but I am sure that some of this will flow towards NFTs.

[00:04:11] Um, so I think it's, it's, it's, I mean, it's an absolutely huge number and good know. Remind people that there is a lot going into to crypto, even when the prices may be aren't going up. Uh, just keep that in mind.

[00:04:26] George: I think things like this speak to total addressable market and be built right. That will get the next a hundred million people onto the platform because you're not getting that amount of money, unless you can answer the fundamental question of who is the total addressable market and how do you get them there. And I think there's going to be a lot of innovation brought to smarter UX and Wallace onboarding Fiat beyond just like send it to Coinbase and then send it around. and I think it's a, you know, a very positive sign. that you know, time spent right now on crypto and collecting NFTs right now is like, I'll just be honest. like, it's tough to watch number, go down every single day. It is a different place to see that, like, Hey, there's a huge increase coming in terms of building an investment, If we were seeing, if we were seeing right now diminishing amounts of money being be spent, guess this was just like that hype cycle that. that was one and done. I think what you're seeing is the builders and

[00:05:34] VCs realize that this is just the beginning of

[00:05:37] something. This is new tech yet to be applied rather than like, wasn't it weird when we all lost our minds in 2021 around NFTs? Yeah. Back to normal,

[00:05:49] the amount of investment just in Q1, you know, dwarfs any other previous.

[00:05:53] Uh, I mean, obviously Andreessen Horowitz pulling in Billy's is a weighed into that, but the amount of investment, the amount of dry

[00:06:02] powder being put behind a new

[00:06:04] projects that are rebuilt, uh, is significant.

[00:06:07] Um, it'll be interesting to sort of play off of our, where, then move into the market?

[00:06:14] Andrew: Yeah. Well, we do know, where at least some of a 16 Z has moved some of their money. Recently, they led a round or at least participated in around, uh, Adam Newman of rework new. Uh, chain flow, carbon and 70 million going into to see. So those two stories, both coming up this week.

[00:06:34] Doesn't always, uh, doesn't make me super confident that, uh, we're one of these. I mean, sounds like, sounds like an, another layer one that's being run by Adam Newman. And, um, I don't know, I have a lot of questions. We've had a lot of Romans with alt layer ones as it is, and it doesn't exactly have a lot of, or give people a lot of confidence.

[00:06:59] So we'll see where this goes. And I really hope that most of this 4.5 towards, uh, things that are a little bit more, um, uh, well tested in marketplace then than these new L ones.

[00:07:11] George: So you're saying that flow carbons And GNT that token it's on

[00:07:15] its way. It's not a, it's not like on an

[00:07:18] Ethereum level. So, yikes one, however, just to say, I is looking to create carbon offset accreditation and tracking for it. I mean, you know, clean, the Dow has already done, I think, an amazing amount of work and sort of that sphere.

[00:07:40] And, you know, they've had the successes that they've had. I will say to Adam Newman's credit, uh, that gentlemen can sell people on things, uh, quite well. And one thing I know you need to

[00:07:52] sell folks.

[00:07:54] Andrew: Yeah. Yeah, absolutely. So, this works out well and you know, it is what it uh, benefiting, benefiting our, uh, ecosystem as a whole, I guess.

[00:08:08] George: Also, I will say

[00:08:10] in terms of like, there are many risks

[00:08:11] associated here, I'm actually oddly if the person's fairly wealthy and not likely to like a bunch of money out, you already did that with the last company he's done. Hopefully you won't get money out. Right. Cause history never repeats itself.

[00:08:24] He's got enough dollars. So this can be like, you

[00:08:30] Andrew: Maybe we should start looking at the new lunette shame. heard new loon is going to be so much better than last. The is for losers.

[00:08:39] I think I'll stay away from that one. But I think this is interesting. There's some, you know, they're not the only name. There are some other big names on the list investors here. So it's one to keep an eye on anyway.

[00:08:53] George: Yeah. Okay. A hacker tool hacker.

[00:08:58] NFT artists, people's Twitter.

[00:09:00] And you know, when people lost hundreds of thousands of dollars as to problem of crypto Twitter, and having

[00:09:06] all of your wallets,

[00:09:08] connected to the ability for attackers to after Twitter, um, they reportedly may have lost these investors, uh, $438,000 worth of cryptocurrencies. I mean, that's

[00:09:20] Andrew: I mean, it's a relatively small one compared to all the other scams and hacks that we are at many of the other ones that we've talked about. But, uh, you know, just another one to another way or thinking to are I guess, you know, don't always even trust the links from, from the accounts that you do follow the authenticated accounts because you know, those can get hacked too.

[00:09:40] And if it seems too good to be out of the blue or whatever, you know, Give it a second and slow down. Yeah, I think, you know, if you listen to

[00:09:51] George: any of our stuff, it's, you know, trust, but

[00:09:53] verify all these,

[00:09:54] things. and I, I, I genuinely

[00:09:57] think it's project owners to do a little bit of what

[00:10:02] I said of white hat hacking and

[00:10:05] trying to trick your own audience, just to

[00:10:06] steal them against potential. And it doesn't make sense, don't do it because anything can we're talking about a lot of money now when certain projects get up there, but again, the onus is on the owner.

[00:10:22] Andrew: All right. Well, why don't we move on to our affordable project? I actually have one for us this week that, uh, mentioned in the discord. there, you seen that. I mentioned I was minting this minted, a few of these, and this is a collection called across the face. by.

[00:10:38] Uh, Nigerian NACI is an artist that I've been familiar with for a little over a year. Now I hold of his, but I was excited to see this collection come out. It's uh, on the async platform, which we've past. Um, this new async blueprints platform Uh, a bit of it's a degenerative art platform, it's not quite, it's not generative in the sense of gender of code building these pieces.

[00:11:03] It's all pieces exist. Then they've run different variations come out. Um, so. They're all of them. It's a bit of a self portrait, I guess, of him in various stages with gait across the face. Um, there's a reference to a object actually on the face of each of the characters in the set.

[00:11:24] Uh, it was a thousand pieces. and it did 4.1. Each floor is right? Um, I I really like this set. I like how it looks. It's very much, uh, very much in of these other I've seen. Um, and, I think it is, I think it's a great way to get new collectors involved in some work.

[00:11:43] Um, as we've seen with some of these other blueprints, um, from Colby and the X coffee ones are now, certainly in, uh, those went up quite. Immediately, but even the Colby ones now I think are up over one E that piece. Um, and So I think this is a good one. If it's, uh, if, uh, you know, for a long-term hold, um, I think there's a good chance that it was a Nazi is still relatively, um, Uh, not well-known in the space and, and that a lot of people will come to know him.

[00:12:14] He's been working, um, with blockchain art for a considerable amount of time now, I mean, over, you know, at least compared to most others over three years. Um, so I think that bodes very well for how he will age in time. people come to appreciate, uh, blockchain art specifically.

[00:12:31] George: I like this too. it's a thousand items as you. And 334 owners. I like that sort of small batch art a rather than PFP, like here are like 10,000, because generated as many as you want it, but this is a very focused, smaller batch. And definitely says something I say as a, as a collection and the great time to sort of say, all right, You know, who is an artist is going to continue to build over time. And Uh, you know, as you mentioned, The art, the art is unique. it's not a derivative and it is in his style. I'll also say, cause I've been, you know, I've been in picking up individual artists in this way that I like the collection. It seems like the collection also carries cache because if it's like uh, buried in so rare somewhere in unique, obviously the artists but I'll just be honest. you need that secondary to be able to find it. And if you

[00:13:31] can't find it, you're not going as many

[00:13:33] competitive bids. The pieces

[00:13:35] are just not going to move. So I like that this is a collaboration between the, the,

[00:13:40] async blueprints and super rare in this case.

[00:13:44] Super rare, so that it's potentially a larger

[00:13:47] audience of this will be found in the future rather for esoteric people who know

[00:13:52] how to like perfectly search that said, don't you think there's going to

[00:13:55] be much smarter art platforms that, like Kool-Aid around artists rather

[00:14:00] than just collections. Yeah, I can definitely see, you know, more artists specific. They, you know, maybe that's something even see spin up out of, You know, some sort of, uh, Open seat marketplace for specific artists pieces are collected in there or, you know, in a small number. I mean, I could see that being somewhat of a gallery style where you could select people to be in or select even different collections to be in a specific marketplace.

[00:14:27] Andrew: Um, no, I do like that this, this is on super rare and async, and. It's interesting that You know, I don't, I'm not sure what the super rare part is actually adding to it at this point. You know, you have the knitting sink. Um, now the, the trading is primarily on open sea and super rare. Um, you know, you can view them on there.

[00:14:50] So I'm curious to see where superhero. Goes with how they're expanding, trying to expand their platform. you know, at this point it. doesn't seem like there's much there other than you can view them on that platform. I, guess you tend to sell them, I believe, buy and sell them there, but it's not, it's certainly not where most of the trading's happening.

[00:15:08] I haven't checked if there's there. has been any at this point. Um, I think that there's A potential for these to be used to build. You know, to build new pieces too. You know, we've with the with his blueprints piece, um, or he's doing that where You can put multiple pieces together to build a new one or build special additions.

[00:15:27] So, um, it's, it's within the blueprint system. And I would, you know, I would like to see something like that maybe if, you know, come out of this at some point or I'd be interested to see it. I you know, I also love that the pieces as they are, but I could see that potentially being something that is in play down the road.

[00:15:43] George: Yeah, full

[00:15:44] disclosure. I uh, picked up one as well. As soon as I

[00:15:46] saw that you, dropped that in the discard. And I was like, well, that's good enough for me. I'm going in? And

[00:15:52] Andrew: Yeah. There's a lot of, lot of good collectors in there. A lot of other artists, uh, they're now Armin, I noticed, uh, um, Brian Brinkman, some other artists that.

[00:16:02] have been around the space for a long time. You know, I think that it was the NACI has a lot of respect from, from well-known artists in the space. Ransom bits is in here. I see recently purchased a couple hours ago.

[00:16:14] Yeah, I have, I picked up a couple on of drive. I like the idea of putting a few of these together and making a collection and I want to get one in each of the objects on the face. So yeah, I am, I'm a holder and

[00:16:26] George: Oh, so you, so there's different objects in the trying to pull that, together. Do you think that's going to be worth something or you just like, from an art standpoint,

[00:16:32] it's just school.

[00:16:33] Andrew: I think it will look cool together. You know, I think. there is potential that maybe There's something like that having a full set of each of the objects will at least look cool and trying to put some variation in what the objects are and what they're wearing. you know, there's different things that.

[00:16:47] Yeah, different hats. There's different, um, clothing. So there's a shirt and tie. There's a basketball Jersey. There's, you know, I dunno there's even more, um, more ways. There's four different backgrounds. I don't know if the yellow is pieces in the past that I've seen.

[00:17:03] Um, but I think that, I don't know the backgrounds even add a lot to this there's I think. There's a lot of ways that people could end up putting collections together. And I think it would be, it'd be cool if there were a way to, to, to put these together in a way that, you know, builds a new piece or something, or take something out of this.

[00:17:23] But, you know, I have no idea, something like that will ever happen.

[00:17:26] George: So you're just planning, playing an app, but you're going and you go? along. I know you've been keeping the powder dry, So thank you for bringing this to us as a really interesting one. Okay.

[00:17:37] Andrew: right. Well, why don't we move on to our theme?

[00:17:41] George: So I think this is in particular to PFP projects larger 10,000 pieces that are put together

[00:17:48] by, you know, a

[00:17:50] developer group and agency. What have

[00:17:52] you proceeds or a Dow certainly. Now

[00:17:56] look, money is made. Where does that freaking money

[00:17:59] go? Like hard and fast. It goes to a wallet. So whoever has the keys to those wallet

[00:18:05] has that

[00:18:05] money.

[00:18:06] So technically you could just run away with.

[00:18:10] So, how do you start

[00:18:12] from there is like where, where does the money go and how can you tell where the

[00:18:15] money might go?

[00:18:18] Andrew: Yeah, I think. this is a good question because I mean, we've got a lot of projects that talk about building a community and they raise a of funds and it's not always apparent. How much, or, You know, at all, will be spent to build that community. And we've certainly seen a lot of rogue projects where, you know, someone really just takes, it, takes The, ease, shuts it down.

[00:18:37] We've also seen a lot where it's completely normal And open that the creators are taking a large percentage of the mint proceeded. Right away for themselves as if that's, you know, the the payment. And, you know, it's a concern that we've talked about here before, when you're getting paid a lot upfront, it really disincentivizes you to continue working and to build towards something bigger, you know?

[00:19:03] And I think Uh, you know, we've seen something different in a project that George brought recently in the little nouns. Um, the, now this is? a project put out by nouns Dow, and both announced out with day, but that's all pooled into a joint, uh, joint account where all this ease is pulled up.

[00:19:23] And then the doubt owners, any of the NFT owners can decide how to use that. Uh, one of the projects they spun up recently, he is this little announce, the Middleton hounds Dow, little now project that is meeting one every 15 minutes. And now they're raising funds from this. Now this is also going into a pool.

[00:19:39] So this is really interesting. I think in that, you know, where this is going, it's more of buying into a collective, um, collective that.

[00:19:47] gets to decide then how to use these funds. Do we know where it is? You can see it. And everybody gets a say in how those are you.

[00:19:57] George: That's totally true. And that, that problem of taking that lump sum up front, and like, what incentivizes you as that continued percent of sales. Right? So that's the other side of like, where does it youth go So you have these two, you have one big moment of mint And ideally human doubt and all of those proceeds kind of roll into the bank. And then how does the, the transactions daily so you can get, I think it's max, what can you take up to 10% is what is the maximum limit on. What you can designate open, see, to give you as a percentage of a cut of any future transaction, or is it higher than that? Somewhere in there.

[00:20:35] Andrew: I'm not sure, actually, it's probably around that.

[00:20:38] George: So you have those two moments, uh, money up front, which is like, you know, that's, that's the big nut. And then ongoing, I see it more common saying, and then every future sale, half of it will go to charity or half of it will go to that or we'll do these other things. And that. presupposes that people are that they're going to be transactions, right?

[00:20:56] Cause if there's no transactions, There's, there's no money in the door. And I think that has been one of the issues that we have seen with the long-term value of access, tokens, tokens that give access to analytics platforms you have a development team, developing things. and they're, you know, they have an update next week in one month and in two months, but the big amount of that came in was.

[00:21:21] When people initially bought that. So there's this problem of you know, follow the, money on how that will sustain into a developer over time. If those are not changing hands, because people are just using the tool. There's, there's a question mark there. I see This comes back to also just frankly trust.

[00:21:40] And what you're doing is saying does this person plan to be with the project or even if they do, and maybe they don't. And they're like, look, it's very clear. Uh, it was a Nazi it's like taking this money and like, you get art, I have money. Future utility is on you. it's right there.

[00:21:56] It's right there in the in the logic. Um, but I think for a lot. of PFP projects, And the, I get a little suspicious. I get a little nervous when I see large percentages being tagged into future transactions without like, the utility. Like, if you're going to say, all right, you have open seat, 2.5% of the cup.

[00:22:17] If you're gonna be taking 10%, the big question is how has that money that you get going to increase the utility marketability secondary value. Of the project or is it just going to line your pockets in perpetuity? That's a trigger to me and be like, this is, this is a cash grab and maybe it's done under the veil of all.

[00:22:40] I don't want people to be Transferring around, so I'm setting it high to make sure it doesn't move a lot. And you're like, Hmm. I, uh, I'm, I'm concerned when that, sort of thing happens. Also. Funny thing about that percentage is that even though it's

[00:22:53] like, quote unquote written to the contract, it doesn't. It's more of a guideline than a rule, like platforms don't have to follow that

[00:23:02] percentage allocation. Actually, even though it's in the

[00:23:04] contract open, see is honorable. That's used to do it, but there are

[00:23:07] platforms that you can go to that don't honor the creator

[00:23:12] fee. I think it's called in contract. they just don't write it into the, the signing of that contract from that piece. Transferring another question for me that comes with.

[00:23:22] What happens if I trade that board aid for some, you know, other, other ape or

[00:23:28] other things, how does that, how does that happen in my paying it fee? Am I not?

[00:23:34] Andrew: Yeah, that's a good question. You know, I think that there's, that's something that's going to come up obviously as this, uh, new trading I think as A trading platform comes to be, you know, we'll have to have that, that do you, I dunno how to creators get paid, you know, but I think in general, maybe we're seeing sort of a shift in how people want to.

[00:23:53] Uh, what the east to be or where they want it to go. When it goes into a wallet that is controlled by, you know, people from the community, you know, I assume it's a multisignature wallet. I haven't looked, um, particularly much into the mound stout model, but I think people there's been a lot of tension on announced out for a reason recently.

[00:24:14] Um, and I part of it is that that little nouns, uh, project meeting, but people also coming to a realization that, um, you know, maybe that. A, uh, a model that some other projects should be I'll say it's really been fun inside of the little nouns, like part of that they're trying to figure out how to spend the money. and there's like, I dunno, like 30, 40 eats we're talking about and they continue, to to generate because as an ongoing basis, every 10th now, Goes to the Dow And every like 11th goes to the nouns proper now, and there's talks about like, oh, maybe we should buy a noun.

[00:24:48] George: So we get like rights. Maybe we should do marketing. Maybe we should do more, uh, donations to charity. Like there are actual considerations of how you guide these funds and it is a you know, it's doing well right now. Um, And you know, might be hopefully not my pick of the year, but it is. was a good pick.

[00:25:11] Uh,

[00:25:11] Andrew: Yeah. I noticed

[00:25:12] George: also have though, related to this like how the proceeds are used and sort of once the proceeds are done, that initial sale is done. It's on the the interest in passion And reputation of the creators to continue, right. That there has to be extra energy. uh, you know, shout out to since you brought us that one, that was, that was a very good one. And they had this amazing Twitter thread where they just talk about how they launched in July of 2021, some fanfare, they just had general PFP And they just, it was collapsing. They just, utility. They're trying to be comics. and they're like, look, we're financial folks Like we know markets like. it And instead of watching yet a new thing, they brought this thing sheer will and reputation, and started churning out actual daily posts that are, very helpful and interesting hot takes on the

[00:26:05] market. And also now just delivered, uh, the, the

[00:26:09] wreck, uh, the Rex guy

[00:26:10] drop.

[00:26:11] And so, you know, that's an example of like, they weren't getting paid at And so you have to think about that. I think with, you know, how these

[00:26:17] proceeds are you There is extrinsic intrinsic here.

[00:26:20] And once the dollars, sorry, sorry. Dirty Fiat. Once the Eve dries up the passion has to kick in And I've been

[00:26:30] really impressed with how those folks have Have turned it around over there.

[00:26:37] Andrew: Yeah, I think that's a good point. you know, I think we've, we've seen some other projects with Freemans recently, and we've seen these in the past and You know, those are, that's another one where. Yeah, I guess you are really want to continue trading. If you're really looking at only getting paid based on, uh, based on a percent of transactions.

[00:26:55] So I think that's a good thing, you know, we've seen, we've seen a lot of inferences. Really get up there. And I think any, any mint that is especially high is, you know, it doesn't mean don't do it, but it does mean, you know, they earned the right to do that? Have they earned the trust and will they, you know, you know, I don't know, will they continue to work at it to, to add value?

[00:27:23] You know, it's something that, you know, you've really got to keep in when it's a high, mid price.

[00:27:27] George: I'm afraid of making any absolute statements, but right now you can hold me to this one. I'm really going to stay away from Hyman prices. I'll just be honest.

[00:27:36] If, if,

[00:27:37] X copy can't hold value for a

[00:27:40] mint price. The arguably well-known names in the game, then I'm, I'm really, I'm not going to be traveling too far over 0.2 weeks for mint. And especially in that, market right now, like in hotter markets. Sure. but until the next moon, birds comes along And we see it coming and we're like, very clearly you just try to do your best to get in that white list And you know, good luck.

[00:28:04] But otherwise it's It's a very sharp

[00:28:08] market out there. I'll say.

[00:28:10] Andrew: Absolutely. Yeah. I'm definitely watching my trades a lot closer right now because, uh, I've noticed things quickly if, if they don't have much history or even if they do, in some case, this is.

[00:28:22] George: Yeah. Quick note, a little alpha here for the DGN, since they did the

[00:28:27] a D E G E N Z. Uh, they did do that drop in snapshot

[00:28:32] already. The price tends to drop after that, but I don't

[00:28:35] think the value of this community is going away. And it might be an interesting

[00:28:39] time to just keep your eye on that floor. it's currently hovering And it may drop a little bit more

[00:28:45] Andrew: looking at. It was up to almost half anyth by the way. So it's fluctuating, definitely worth keeping an eye on.

[00:28:52] George: the problem is I don't want to sell mine. I need This is the whole problem. Like, oh shoot. I should've got two. and it's the same thing with low now. And I'm like, I can't sell it. Oh no. And now I have this like heartbreak of watching this thing right