The Periodic Buyback System: How Woody is Revolutionizing the NFT Industry
We’re going to keep this short, sweet, and to the point.
Let us be real blunt — the Woody NFT plans to revolutionize the way NFTs are structured from this point on. We hope that other projects follow in our footsteps once they witness our upcoming success with this system.
What is the Periodic Buyback System?
The Periodic Buyback System is a way to incentivize initial Woody collectors and a way to promote constant community growth even after the entire collection is sold out. We believe that in order to have an everlasting project with appreciating assets, you must give your audience a reason to stick around.
How does it work?
Once all 600 Woodys are sold, we will place a bid on every Woody for the most recent sale price + a 20% premium. This will act as our first periodic buyback out of five and will be executed the day after the final Woody is sold. For example, let’s say Woody #352 was most recently sold for 0.25 ETH. We would then make an offer for 0.30 ETH for that particular Woody (0.25 ETH x 1.20 = 0.30 ETH).
Here’s another example: Let’s say Woody #547 was most recently sold for 0.75 ETH. After the collection is complete, we would then make an offer for 0.90 ETH for that Woody (0.75 ETH x 1.20 = 0.90 ETH).
Once the first periodic buyback is complete, there will be additional buybacks every quarter (3 months) thereafter for 1 year meaning there will be a total of 5 buybacks altogether. The next four buybacks are different than the original in the sense that we will not offer a 20% premium for each Woody. Instead, we will only bid 5% above the most recent sale price.
Woody owners are not required to accept any buyback offer, although we presume many will. Additionally, Woody owners will have exactly 72 hours to decide whether they want to accept or decline the offer. After 72 hours, the bid will be canceled on OpenSea.
What about secondary sales?
Good question.
Buybacks will be offered at a premium to the most recent sale price. For example, if a Woody is originally sold for 0.10 ETH and gets flipped on the secondary market for 0.30 ETH prior to the buyback, the premium will be added on top of the 0.30 ETH, not 0.10 ETH.
Let’s try another scenario. If a Woody is originally sold for 0.10 ETH and does not get flipped (AKA the most recent sale price is still 0.10 ETH,) then we will still place a bid of 0.10 ETH + the current premium percentage. In other words, a Woody does not need to be flipped in order to be eligible for a buyback. All 600 Woodys will be eligible for all 5 buybacks.
Won’t you lose a bunch of money, though?
This is what we thought at first. However, after breaking down the numbers we realized it wasn’t as much as we initially figured. Don’t get me wrong, yes, Cory and I will be losing money on this project upfront — but our estimated projection is nowhere near our original guess especially when dividing the cost between the two of us.
Also, the keyword is upfront. We plan (and hope) to make an insane amount of profit from Woodys over time due to the fact that we are the first people to ever try building an NFT with this unique structure. From what we’ve seen, nobody else in the community is attempting something even remotely similar to this. I guess you could say we’re pioneers.
At the end of the day, we see the Woody collection as an investment. If we end up massively profiting from this project in the future because we were the first, (like how CryptoPunks were one of the first-ever NFTs,) then that’s awesome! If not, that's okay too — at least we can say we tried.
What else do you have in store for us?
The Periodic Buyback System is not the only special thing we have planned for the Woody collection. We will soon release a 2021 roadmap which will outline what we have in store for the remainder of the year.
We’re in this for the long run. Everybody says that, but we truly mean it. We want to make Woody a crypto-renowned name that all of us can look back on and proudly say that we were the first people to be involved with this project. We look forward to seeing what the future holds.
Thanks for reading.
~Dylan & Cory | Woody Founders
