What am I going to do with the money?
This is an EXCELLENT question, one that every project or person selling an NFT should be open and transparent about. We all know that I love stats and numbers, so let’s start there. I’m going to have to make some assumptions but the overall thesis and approach is going to remain the same regardless of how many NFTs sell.
Let’s say the 333 club sells out, and I sell 10,000 of the lower tier NFTs.
10000 x 0.033 = 330 ETH
320 x 3.33 = 1,065.60 ETH (13 reserved to be given away, disclosed here)
Total: 1,395.60 ETH.
Yeah, that IS a lot of money. Depending on the price of ETH at the time we’re looking at somewhere around $6,000,000 USD.
30% or 420ish ETH will be converted to USDC and set aside for tax. My accountant(s) are having fun figuring out what my tax liability is going to be, but I'm not going to get caught in a sticky situation months from now where I have a large tax bill and no way to pay it.
That leaves roughly 1,000 ETH. I’m gonna buy a CryptoPunk, because I have always wanted a Punk, and I think they are fantastic long term blue chip investments. It’ll probably be something relatively floor-ish, let’s say 100 ETH.
I’ll transfer 100 ETH to my regular hot wallet to use for trading NFTs on a shorter term basis.
I'll donate 100 ETH to charity (likely split into 33.33 ETH to three different charities) because, well, that's just a good thing to do and charitable donations from NFT sales are a trend I want to encourage in this space.
Let’s say I have 700 ETH left. I love the idea of completing a full Art Blocks Curated set, I love the idea of getting another CryptoPunk, I love the idea of buying a bunch more Cool Cats. I am probably not gonna do any of these things though, at least not immediately. I’m probably just gonna sit on the majority of the ETH to be honest. I might do some low-risk farming/staking, and I might convert some to USDC to hedge against a market downturn.
One thing I can say is that I’ve started conversations with a few artists and I will be commissioning some art for ZenAcademy, with a few to be raffled off to holders of the NFTs. I just think this is a great way to spend a bit of ETH - supporting artists, rewarding holders, and just generally re-investing back into the space. Hopefully creating value.
The remaining 600-700 ETH is basically my war chest. It is not a DAO war chest, it is not a community wallet, it is not for me to create a token that anyone with my NFT can stake and generate yield from. I am steering far clear from all of those things. It’s my war chest; and I guess you just gotta trust that I will spend it wisely and responsibly.
I see these NFTs as a way for people to pay me for my content, and for my time. It’s my attempt at using the web 3.0 model to monetize the work that I have been doing, and will continue to do in this space. I’m trying to be as up front, honest and transparent about it as possible. Ultimately those that are willing to pay for what I’m offering will do so, and those that are not, will not. The market will decide the value of what I am putting out there.
I will say that I have some ideas and plans to use some of the money, and some of my connections, to benefit holders. There are so many freaking cool things that are possible with NFTs that we are largely limited only by our imaginations. I don’t want to mention any more ideas because I don’t want to set expectations or get any hopes raised - please consider the purchase of one of these NFTs to be a lifetime membership/access token to ZenAcademy (whatever that is now, and whatever that will be going forward), and nothing more. Anything extra is a bonus.