NFT Rewards Q1 2024
Over the past few quarters we have run our NFT rewards program targeting rewards to creators. As a creator first marketplace we believe that as the lifeblood of the NFT ecosystem it is important to prioritize support those building and creating on Algorand, particuarly during challenging market conditions. This strategy has been positively received by both the creator and collector communities and provided a significant boost to a number of much loved NFT creators. As a result of these programs, we’ve seen a tangible boost in trading volume and the number of users interacting with our marketplace both as buyers and sellers.
Whilst the rewards are targeted directly to creators, through this mechanism we have seen a number of projects that have either passed this benefit onto their holder communities directly or ran incentive programs/rewards of their own which encouraged their holders to utilize Shufl. This has resulted in the rewards programs run by Shufl, having a positive impact on both creators and collectors. Shufl advises any creators who are interested in maximising their impact during the program to find creative ways to use the rewards program to drive community incentives.
For Q1, we propose to run a similar program based around our model of a 5x royalty boost. However, on reviewing past programs, we believe we can improve the program to try and ensure a more even distribution of funds to creators. In each of the last two periods, we have seen a large percentage of our rewards pool going to a small number of creators, for example in Q4 this Pixel Pups received over 50% of the available rewards, view full rewards allocation from q4 here. While we appreciate their efforts to activate their communities, we feel that in the spirit of the rewards, we would like to see the support spread more evenly across projects. For this reason we are going to introduce a cap of maximum 25% of the available rewards to anyone project/creator. As this could result in projects with very low sales volume benefiting, to combat this, we are introducing a 500A minimum volume to qualify for the Shufl rewards program this period.
How it will work:
Creators* will receive 25% royalties on all NFTs sold via Shufl. Currently creators receive 5%, the boost in royalties will see a 5x in the total amounts of royalties received. The royalty boost will be paid out using the allocated rewards budget not affecting either the buyer or seller.
To qualify for the Shufl rewards, creators must achieve a minimum sales volume of at least 500A during the rewards period.
If the sales volume is not sufficient for the total amount to be distributed, the royalty boost will be shared on a pro-rata basis with eligible creators capped at a maximum of 25% of the available rewards to anyone project/creator.
The period for these rewards will run as follows:
- Period 1: Jan 22nd – Mar 22ndth
At the time of sale the creator will automatically receive the standard 5% royalty fee. Within five days of the end of each period the additional royalty rewards 20% of sale amount will be airdropped to creators.
The amount available for creator rewards is confirmed to be 49,824A. We would like to thank Algogems, who kindly donated a portion of their allocated rewards to even out the distribution.
*To avoid any conflict of interest, Goanna NFTs will NOT be included in this measure
*All articles published on the Shufl.app website are the opinions of the author. As opinion pieces they may not reflect the opinions of Shufl Inc. These articles are created purely for entertainment and informational purposes only and do not constitute investment advice. Cryptocurrency and NFTs are highly volatile assets and you should always do your own research before making any investment.