Seize the Factories 🏭 (Powered by $RELIC)
What are factory NFTs + $RELIC & how do they blend into the Tribe ecosystem
Speaker: Saint
Check out the complete audio 👇
Introduction
The NFT market is becoming increasingly challenging, with 99% of projects failing to pass the survival threshold due to a lack of sustainable value, utility, and community.
With attention and liquidity shifting to other asset classes, key metrics such as total volume and active users in the NFT market have been declining. This brutal market demands a clear execution strategy for projects to survive and eventually thrive.
So, to survive and thrive in the NFT market, projects must adapt by identifying success patterns and incorporating them into their strategies.
One compelling approach in a bear market is the factory NFT design, which has proven effective for a few current projects like Memeland, Keungz Genesis & of course, our very own Tribe Diamonds.
Today, we discuss the importance of seizing the Factory NFTs and building a cohesive ecosystem.
Summary
What are Factory NFTs?
Why are Factory NFTs powerful?
The Tribe Ecosystem & Factory NFTs
The Village
How can Tribe get access to the Factory NFTs?
Relics 101
Tribe & Village Partners
Conclusion
What are Factory NFTs?
Factory NFTs are Genesis assets of a collection that compound more ownership over time.
They can unlock more utility, access, or other NFTs with different use cases and values.
They start with an initial piece of value and can sprout other layers of value healthily and sustainably.
Genesis Assets x Supply Size
Genesis factories with small initial supplies, ideally between 200 and 1,000, work best to increase yield over time by building demand pressure.
Supplies between 200 and 500 have shown promising results, while up to 3,000 is still viable.
A smaller supply allows for more leverage when adding value to future asset layers within the project.
Let’s explore a few examples of what are some GREAT factory NFTs spread across:
OG Collections
Second wave
Current market leaders
First, OG Collections 👇
→ Bored Apes by Yuga Labs
Bored Apes were the first assets launched by Yuga. Though they were a large-supply genesis asset, they have become a valuable blue chip in the NFT ecosystem, with demand driving its value up over time.
Owning a Bored Ape has unlocked yields and compounding ownership over time, including assets such as access to a Serum, a Bored Ape Kennel, ApeCoin, Legends of Mara, and Heavy Metal. The ecosystem has been sustained well.
But today, even for Bored Apes, it’s become challenging to sustain since the market has not expanded fast enough, mainly due to the volatility of web3.
But Yuga is working on providing the best user experience for their community & Bored Apes is an excellent example of factory NFTs.
→ RTFKT & CloneX
RTFKT's Meta Pigeon NFT was designed as a factory NFT, which allowed its owners to claim three Clonex vials.
These vials were redeemable for three Clonex, leading to multiple layers of ongoing utility access and yield, such as space pods, monolith boxes, pet system, and merch system.
This created a lot of compounding layers and value for CloneX owners.
Second wave 👇
→ Digi Daigaku
Digi Daigaku executed the factory NFT strategy well in the initial design by introducing a small supply Genesis asset (2222) and working its way up across multiple layers, leading to spirits, warriors, dragons, giant dragons, potions, and even keys to other projects.
Despite having a sound strategy initially building up and moving over a 15 ETH floor.
Digi Daigaku ran into issues as they expanded their supply and added too many layers (over 8) in their recipe design, which made it difficult to sustain a meaningful floor.
Even with a Super Bowl commercial, they haven't maintained a healthy floor due to the large number of assets in the ecosystem.
Current market leaders 👇
In today’s ecosystem, small supply-based Genesis assets (<500 supply) like Memeland MVP, Keungz’s Genesis, and Tribe Diamond are excitingly creating ecosystem yields and maintaining sustainable floors.
→ Memeland MVP
Memeland MVP is the factory asset of the Memeland ecosystem with a supply of 420.
When you own a Memeland MVP Genesis NFT, you can access assets like Captainz and Potatoz and future ecosystem yields.
This also indicates the communities confidence in the long-term execution of the creator, Ray, as evidenced by their high expected floor value and the team’s planned future services, including Meme.com and building out a web3-based trip advisor.
→ Keungz Genesis
Keungz Genesis is the factory asset of the Keungz ecosystem, with a supply of 432.
It provides access to first-party projects such as Cubs and extends its ecosystem to include third-party projects such as YogaPetz.
This has helped them to maintain healthy floor value on their initial Genesis collection, with users excited for short-term and compounding yields.
Why are Factory NFTs powerful?
Factory NFTs provide a compelling way to disrupt and create unprecedented value in web3 because they are built to scale in bulk and can be very resilient in a bear market.
Factory NFTs offer greater flexibility and resilience in times of chaos than singular projects, which can be rigid and difficult to pivot. Unlike a singular project, a factory NFT is connected to multiple layers of value, making it a portfolio of projects.
This is why small-supply factory-based NFTs have been increasing in price even during a bear market, making them a compelling way to capture and sustain value.
Building a singular project requires a commitment to specific metadata, utility, launch sequence, and contract features, making it hard to maneuver and pivot. In contrast, a factory NFT-based design allows for more flexibility and adaptability, making it an appealing option in the current bear market.
The success of factory NFTs like Keungz Genesis, Tribe Diamond, and Memeland MVP suggests a promising future for Factory NFTs.
The Tribe Ecosystem & Factory NFTs
Our aim at Tribe is to participate in this factory-based ecosystem dually by building our factories and investing in other factories as well. Our projects, such as diamonds, are designed with a factory-based approach, providing ongoing access, utility, and compounding.
For example, we want to create more factory-style NFTs for our ecosystem, like Lost Realms, with Kings Oath being the Genesis factory. The king asset will give compounding value over time through playable and multimedia assets such as comics, toys, and merch.
The Genesis factory asset for Reapers will be the pilot.
Moving forward, all collections will adopt a similar philosophy to support and expand the factory design for our users. We will concentrate on developing a robust first-party portfolio and incorporating additional third-party factories, each with their distinct business models.
Our Village
Over the last few weeks, we've introduced a significant update to our model called Village, where we are building our factories and helping others launch their NFT factories as well.
In the past few months, we've built great relationships with multiple founders and projects, working with them on strategy, value, and community support. The results have been astounding.
We believe allocation is one of the most important things to provide in web3, and our goal is to provide our community with the greatest access and opportunities.
The goal of Tribe is to seize all the factories by building and partnering with these Village partners and distributing assets back to the community through the most significant allocations.
As we speak, we’re establishing partnerships with six quality projects. The plan will be to introduce 1-2 monthly partnerships, offering the community increased access, value, and opportunity.
In the past, we have successfully hosted live AMA sessions and thrown major live events to promote projects like Momoguru, Puma, and Dimensionals.
We have received positive feedback from these founders and project leaders, noting that we have been the most impactful in driving engagement and awareness for their projects. We have also explored other ways of collaborating with these founders/builders, for example, the Modern Pro series with the head of Web3 at Puma.
We have found that many founders seek support in strategy, design, community growth, metadata evaluation, allocation strategy, communication, and narrative. This is where we want to come in - whenever there is an alignment in strategies, we form effective partnerships.
The first major success has been seen with Dimensionals.
Dimensional Stones, the genesis factory NFT of Dimensionals, is considered one of the most compelling factory opportunities in the market because it is developed by a venture-backed team that has executed multiple games with eight-figure revenue. The team has also been working on the game for months in advance, with a multimedia perspective evident in the gameplay reveals.
Overall, in the last 60 days alone, Tribe has generated a potential net return of ~500 ETH for the community. The majority was generated from free mint assets, resulting in a shallow risk and incredibly low cost basis. Just the way we like it.
How can Tribe get access to the Factory NFTs?
It comes from the Tribe Community itself.
We recognize that our power and success come from community members participating in events like AMAs, Something is Minting and Village partner events.
Our community helps drives awareness, attention, and interest, making us one of the stickiest & retained communities in web3, even in a bear market. No other project has held our level of engagement consistently for the last six months, which is a testament to the strength of our community.
We have a large audience on twitter spaces, discord stages, and many active verified wallets, helping us remain relevant and provide a great reach to the projects.
Quick stats:
7,000 Genesis Soul users
10,000 to 15,000 weekly active users
25,000 to 40,000 monthly active users
Greater Participation (GP) = Greater Access (GA)
This is where $RELIC come in
$RELIC 101
→ What are $RELICs?
Relics are participation tokens that can be claimed from events, such as live AMAs, town halls, chats, or games.
You can think of relics as a form of social currency, having the same utility as collecting tickets at an arcade.
Relics are built in a web2-compliant manner, meaning they are not tradable, purchasable, or on-chain but can be redeemed for access and allocation to the Tribe world.
→ How are Relics distributed and tracked?
The relics are typically distributed verbally and require participants to enter a password within a small time window in the secret chamber room of the Tribe's Discord.
In addition, relics will also be earned via NFT ownership, especially for the Diamond & Soul holders.
When you successfully claim a Relic, you receive a role updated on your Discord account.
Each relic has a weight, which determines its value and utility.
Relics are exclusive to the Tribe community and can only be claimed in our Discord.
→ What’s the utility of Relics?
Relics have a twofold utility.
Firstly, they unlock unique event raffles and auctions, increasing the chances of getting allocations for top projects in the ecosystem.
Secondly, they provide a more significant trusted score, allowing one to ascend through the community and gain whitelist spots for our first-party projects such as Lost Realms and Reapers.
All Village partners in the pipeline will have a factory-based NFT design, giving members a unique opportunity to choose and increase their odds of redeeming relics to access their desired project - either first-party or third-party.
The goal is to help members find their Tribe and discover new projects in their web3 journey via relics.
So, we are launching a Village Market where relics can be redeemed in multiple ways. A relic counter system will also be introduced, allowing users to track their relics and see how many they have spent or can still redeem.
Let’s understand all the different ways via which one can redeem the relics👇
Live Auctions
Silent Bids
Asynchronous Live Bids
Fair Raffles
Games, such as Poker Tournaments
→ Live Auctions
We have been testing out doing live auctions via the hand-raising tool in the Discord server to mimic a real auction experience digitally.
It's a fun and exciting experience where participants can see what others are willing to pay and who got a good deal.
→ Silent Bids
In silent bid auctions, community members can bid on an asset by entering their maximum bid on relics without knowing other bids.
For example, if you are excited about a project like Eve from the Dimensionals, you can enter in your max bid that you're willing to bid on the relic, and after a 48-72 hour window, the silent bid auction will close. The top five bids will win; you'll see what people bid and the range of speculation on the asset to get it. After the bidding window closes, the top five bids will win the asset, and the lowest bid of the five will be the floor bid for everyone else.
The auction is asynchronous, and users can enter their bids in Discord.
→ Asynchronous Live Bids
In an asynchronous live bid, one premium asset, such as a dimensional stone, will usually be available for users to bid on. Participants will have a 48-72 hour window to bid on it.
The top bid so far will be visible, creating a fun experience similar to a traditional auction.
→ Fair Raffles
In fair raffles, upcoming launches and NFT projects will be available for raffle entry.
For example, let's say the whitelist for Paraverse is 25 relics. If you believe getting an allocation of Paraverse is worth 25 relics, you could enter that raffle. Everyone who chooses to enter will have a window, and then a group of winners will be selected based on the allocation.
Only the winners will have to pay for those relics, and there’ll be no cost for those who participated but didn't win. It's a low-cost way to potentially win allocation on a valuable project at an expected price.
→ Games, such as a Poker tournament
Players can earn allocation via paid poker entries in a tournament where the top winners get prizes such as Dimensional stones or Eve.
For example, players will pay a fee of 20 relics for a seat at the poker table and compete against each other to win the tournament. The prize for the poker tournament can be an allocation to an upcoming project, and a few of the top winners of the game might be given an allocation. So, if you’re sure about your skill sets and want to gamble your relics, this will be an opportunity for you.
It involves introducing an element of game theory and risk-taking, with the players required to assess if it's worth entering the tournament.
Relics Economy & Balancing
The relic economy is balanced by burning relics every time a user wins, effectively decreasing the total supply of relics in the market. As top bidders spend their relics on significant projects, they can no longer be top bidders, allowing the relics to roll over to the following user.
This deflationary design directly impacts relics, making them more valuable over time. Participation in the relic ecosystem can be equalized amongst all holders to a certain extent.
The Tribe ecosystem encourages participation to help get active community members at least 1 NFT over the next 120 days and support the community’s growth by providing a range of options - thus helping create a balanced economy by burning relics.
Tribe’s Business Model
We believe in the allocation and play the same game as all our community members.
Our business model revolves around incentivizing the scaling of the vision through guaranteed allocation in projects we believe in, capturing a share of allocations as a community. The aim is to build the Tribe Vault with hundreds of factories to yield sustainable value and compound returns over a prolonged period.
This builds a harmony of alignment with users, holders, and builders, which will help thrive as a business venture. We both seek the goal of capturing and holding longterm NFT assets.
For the first time, builders and holders are truly aligned as we scale together.
Tribe & Our Village Partners
We have already been able to close six high-value allocations; of those six, multiple have raised significant venture capital from tier-one investors.
These projects have small supplies and are free mints, helping the Tribe community get involved at a near-zero cost basis (Just pay gas.)
The partnerships will be extremely beneficial for our Diamond holders because every diamond will receive a guaranteed one-to-one allocation of every partner with a supply of over 1,000 (Diamond holders will also end up receiving the largest allocation in the ecosystem)
Each Village partner will also provide a major allocation to Genesis Soul users where that supply can be captured through Auctions & Raffles too. Our entire community is going to share in our collective wins.
Additionally, the requirement for Village partners to acquire a tribe diamond and send it to the Tribe Vault will also help introduce supply shock to the Diamonds, helping increase their value over time.
This creates multiple layers of value creation without diluting the assets, which has been a challenge for other builders.
Conclusion
In conclusion, we are seizing the NFT factory landscape and partnering with the best builders in the market to distribute allocations back to our Tribe community.
Relics are a powerful tool in this endeavor, and Tribe is committed to creating fair distribution and access at unprecedented levels. The next 120 days will be very exciting for the $RELIC ecosystem - with multiple initiatives to earn and spend them!
Boasting an active community and an attractive array of projects, we are well-equipped to navigate the challenging terrain of web3, maintaining confidence and unwavering belief in the long-term promise of NFTs.
It is time to seize all the factories. 🏭