NFT incentive structures are changing.
Rugpull crowdfunds are dying and sustainable models are emerging. The Memes by @punk6529 is a perfect example of a sustainable project. Here's their strategy and why it's working 🧵
Most NFT projects followed this cycle:
Generate massive hype
Mint out and pump floor
Ppl realize the project is substanceless and it crashes & burns
They're like crowdfunding campaigns — participants give $ up front and hope you get something good.
6529 deployed a different model with The Memes:
Clear long-term mission
Innovate then iterate
Build network effects
Most successful startups follow this model — users receive value up front and choose whether to invest more later.
Let's dive into how they did it 👇
1. Mission
Projects must have a mission that holders identify with on an ideological level.
Some examples of missions are things like sustainability, connectivity, health, etc...
Phygital merch, gaming NFTs, or whatever hype flavor of the month it is, are not viable missions.
The Memes' mission is spreading messages of the open metaverse (decentralization, community, and self-sovereignty).
6529 is doing this by launching Meme cards which embody these messages.
Eg, today's card, FTXPepe, is a reminder to self-custody your coins in a hardware wallet!
Projects must have founder 🤝 mission fit.
6529 wrote 65 viral NFT threads, is a prolific NFT collector, is building a metaverse, and created an NFT course...
They're the perfect leader for The Memes.
Projects need community 🤝 mission fit too!
How do you do this?
Suppress short-term financial incentives to only attract mission-aligned folks.
6529 does this by progressively growing supply, changing distribution, and stating The Memes are an experiment and not to overinvest.
2. Innovate then iterate
The best opportunities are created through innovation.
6529 could've launched 10K PFP or alpha group pass which would've done well.
But, the innovative approach created FAR more upside for the collection's impact.
The innovation started with 6529 remixing some OG NFT collection styles.
The Memes are inspired by Rare Pepes and Loot.
6529 also leveraged their network of artists to create stunning original works of the "open metaverse" theme.
Resulting in an art form and project type which has never been done before.
6529 also innovated by doing things that didn't scale.
Seeding the right initial community is imperative to a project's success...
Which is why 6529 literally handpicked thousands of ppl to whitelist for the first memes.
Now, innovation is critical, but what really differentiates The Memes is their rate of iteration.
Iteration is vital when you're doing something new because it leads to discovering what works.
Startups thrive or die based on their speed of iteration and The Memes...
Have TONS of opportunities to iterate.
Eg, The Memes drop cards, process feedback, and makes changes 2-3x every week!
Comparatively, crowdfunds have one shot to get it right — the initial mint.
The Memes started small and grew progressively which has other benefits such as :
Lower expectations
No single point of failure
Curating a strong community
Ability to balance supply/demand
Alright, let's move on to the secret sauce that will spread The Memes to millions..
3. Network effects
Network effects mean the value someone receives from a product increases as more people use it (and vice versa).
Network effects help startups grow and make their product defensible.
Every project should think about what network effects they can create!
In the case of The Memes, there are multiple layers of network effects which create value for the collection.
Let's go through each:
3.1 CC0
Anyone can use the cards however they wish and as they do...
The Memes' network effect strengthens bc more people will discover the cards and want to participate in the ecosystem.
Eg, the @snounsdao in @y00tsNFT drives value to the @nounsdao brand and NFTs.
3.2 Collectors
The Memes continually grow the holder base by partnering with new communities/artists for drops and allow listing holders.
As the holder count grows, the number of people talking about The Memes grows — bringing new recognition and demand to the project.
The Memes are accessibly priced to grow the network.
But, there are rarer high-priced cards which make it fun for large collectors and additional games they can play (eg, collecting a full set).
6529 cracked the code for growing a network while increasing its quality.
3.3 Art & Artists
Cards become part of the artist's portfolio and ppl may discover The Memes as they research the artist.
It also becomes more desirable for an artist to make a card as the artist network grows bc they want to associate with great artists like @osf_nft & @JakNFT
3.4 Builders
6529 is building tools to reward and incentivize people to spread The Memes (eg, derivative art, merch, virtual experiences, etc).
As more builders create Meme derivative projects, an ecosystem will flourish where they can integrate and support one another.
The network effects are intertwined...
Each strengthens the collective Meme Card network and its own sub-network.
In summary:
6529 is leading the charge on how sustainable NFT projects should be built.
And their playbook has these three components:
1. Have a clear long-term mission
2. Innovate then iterate
3. Build network effects
Thanks for reading!