Is Art Gobblers the GREATEST NFT game theory experiment EVER?
Here's how their innovative tokenomics work and what you NEED to know to avoid getting REKT ☠️
Art Gobblers is a self-sustaining ecosystem centred around creating and collecting cool art.
It's one of the most hyped mints of the year with people offering 2 ETH for the treasured whitelist spots.
Here's why people like it so much...
Innovative tokenomics
Art by Rick & Morty creator, Justin Roiland
Small 2k initial supply and early holders are rewarded
Created by Paradigm math wizards (@_dave__white, @transmissions11 @FrankieIsLost)
The ecosystem has 4 core components:
Gobblers: characters who "gobble" art
GOO: tokens earned by the Gobblers
Canvases: purchased with GOO and used to make art
Art: canvases can be turned into art designed in Gobblers' drawing tool
Art can be fed to Gobblers to become part of em!
There are also 10 1/1 Legendary Gobblers that can be bought for 69 regular Gobblers. Legendary Gobblers produce 2x the GOO of ALL Gobblers burnt for them. Expect collector DAOs and whales to compete over these — driving the price up for Gobblers and GOO in the process!
The Gobbler ecosystem flywheel is:
—> Artists make cool art
—> Gobblers become culturally relevant
—> Collector demand floods in
Alright, moving on to these cool token mechanics...
$GOO (Gradual Ownership Optimization)
GOO tokens are awarded to Gobblers daily.
The amount rewarded is based on how much Goo a Gobbler has in its "tank" (more GOO —> faster GOO generation) and every Gobbler has a reward multiplier.
GOO encourages NFT and fungible token to stay correlated because...
GOO rewards are at their optimum when GOO is held in proportion to Gobblers.
Too little GOO:Gobblers leads to low rewards
Too much GOO:Gobblers means you'll be diluted to death
The 2nd token mechanic is...
VRGDA (Variable Rate Gradual Dutch Auction)
Allows project creators to continuously auction tokens at close to a custom schedule.
Prices automatically rise when sales are ahead of schedule and lower when sales are behind.
Let's use an example...
Suppose Gobblers want to sell 10 NFTs/day at a price of 1 ETH.
If 70 NFTs are sold by day 5, the starting auction price will jump up to 4 ETH. (1 ETH target price * 2^2 days ahead of schedule)
If Gobblers has 30 sales in 5 days (2 days behind), the price will lower to 0.25 ETH.
This is all fine and dandy...
But...
There's ONE thing that'll MAKE OR BREAK the Gobbler ecosystem 🫡
IT NEEDS VALUABLE ART
Without a vibrant art ecosystem, this could become a game of musical chairs and some ppl will get REKT.
ART is the underlying resource powering the ecosystem.... the art we see on Art Gobblers’ Twitter will need to keep coming!
There's some good news tho..
The ecosystem is designed so ONLY great art will be created...
Canvases and art aren't rewarded GOO and canvases are more inflationary than Gobblers (8k Gobblers distributed over the next decade while canvas supply grows infinitely).
Creating subpar art is an NPC move!
The key questions are...
Will artists create art for Gobblers?
Will holders want to lock up art in the Gobblers?
Will collectors want to own immutable art-filled Gobblers?
If the answers are yes... then Gobblers are probably gmi 👍
WHAT'S THE STRAT?
There's no NEED to participate in this project (NFA yadda yadda).
If you do, there are 3 strategies:
Mint Gobblers with Goo early to gain a higher overall multiplier
Accumulate GOO and wait for the Gobblers price to come down
Math
Gobblers ran an experiment with 14 top botters who started with 100 Gobblers each.
The optimal strategy in that game was to buy Gobblers (with Goo) as early as possible and balance Goo to Gobblers.
Waiting didn't work because early buyers drove up the auction price and...
Using math didn’t work because all the degens were irrational af (and these were smart botter degens).
Legendary Gobblers drastically drove up the price because it created FOMO for that 2x GOO reward.
The 1st person to get the Legendary Gobbler won.
NOTE ☝️
This was a closed ecosystem and the goal was accumulating as much GOO + Gobblers as possible.
There was NO interplay exiting or entering from the world outside of and no worry of collapse.
The real launch will likely have less aggressive participants...
SUMMARY
NEEDS ART to be valuable long term
Talented creators & hyped w/ small supply could cause a mega pump
Continued supply influx with no team building stuff could cause a dump
Rewarding tokenomics for early participants and systems to maintain ecosystem balance
What's my strategy?
Depending on the initial secondary price... partake in the fun!
I won't FOMO in later as the rewards heavily favour early participants.
If I buy, I'll closely follow the art developments to see if I'll hodl and legendary Gobbler mints to consider exits.
—
That's a wrap 🌯
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