Tokenomics and Rewards
"Tokenized Royalties" are a first in the NFT industry. $DN and DT are the foundation of the DN ecosystem and are explained below.
❓ What is $DN❓
$DN is an ERC-20 token that is the liquidity and utility token of the DroppingNow ecosystem. Two $DN tokens are created every time an NFT is sold on DroppingNow - one to the seller, and one to DroppingNow (for collections with an Approved Owner, 1 $DN goes to the seller, 0.5 $DN goes to the collection author/creator, and 0.5 $DN to DroppingNow). These tokens represent rights to the revenue generated by the marketplace fee on DroppingNow.
Holders of $DN tokens are rewarded with the revenue generated by the DroppingNow marketplace fee. These rewards are distributed proportionally based on your wallet’s % ownership of outstanding $DN tokens. The rewards can then be claimed from our Rewards page.
If you own $DN tokens, you will still be earning rewards for holding your $DN tokens even prior to minting those tokens via our Rewards page. You can claim your rewards at any time.
In an effort to avoid wash sales clogging up the marketplace, we've implemented a minimum sale price for a transaction to qualify for $DN rewards (ie., for $DN to be created and distributed when the item sells):
Initial Distribution
Unlike most projects, there is no initial distribution of $DN. We don't believe in rewarding insiders or our team based on some valuation instead of delivering a great product. So no airdrops, strategic sales, or other incentive programs.
We believe that this is the most fair way to distribute tokens. Our team is only rewarded if users are actually using the platform, and we're still rewarding our users for supporting/using the platform.
In summary:
No airdrop/vampire attack!
No initial supply!
No pre-mine, even for the team!
No max supply!
$DN Token Addresses
❓ What are Dropper Tokens (DT)❓
DTs are ERC-1155 tokens that represent the rights to revenue generated by transaction fees for a collection. Whenever a primary sale occurs (ie., an NFT is sold for the first time on DroppingNow), four DTs are created - two for the seller, one for the collection author (once they have been approved), and one for DroppingNow. These are "unminted" until each recipient has "minted" their tokens via the Rewards page.
The revenue from fees for every sale in a collection on DroppingNow is awarded to DT holders proportionally based on the % of DT supply they hold for that collection (pro rata). Rewards must be claimed from the Rewards page.
Example: Let's assume Jane has sold two CryptoPunks on DroppingNow. Assuming this is the first time these items have been sold on DroppingNow, she would now have four CPDTs (CryptoPunk DropperTokens) - two for each sale.
If 20 CryptoPunks have been sold on DroppingNow, there would be 80 CPDTs outstanding. So for the next CryptoPunk sale that takes place on DroppingNow, Jane will receive 5% of marketplace fee revenue from the sale.
What does a DT look like?
Above is a DT token from a user who sold a Purrnelope's Country Club NFT. The naming of your DT tokens will reflect the collection name of the NFT you sold. Ie., if you sell a BAYC NFT then you will earn a BAYCDT.
As standard ERC-1155's, you can buy and sell DTs on DroppingNow or any other marketplace that support's ERC-1155's (Opensea, etc).
Why use DropperTokens?
Imagine tokenizing the rights to a collection’s royalties - that’s exactly what Dropper Tokens facilitate! Trustless, transparent, and tradable rights to the royalties of a collection, simply from holding the collection’s Dropper Token.
DT Token Addresses
How to earn more rewards?
Be the first seller who lists a unique token from a supported collection on DroppingNow to collect DT tokens.
Encourage others to sell and drop NFTs from the collections you own $DTs from and collect your part of the fee.
Drop and sell more unique NFTs from supported collections on the platform to earn additional $DN tokens.
If you are a collection author/creator, claim ownership of your $DN and DTs.
Primary Sales on Dropping Now
Creators who drop a new collection on DroppingNow will also get the benefit of being a "primary dropper" once they claim ownership of their collection. By claiming ownership of the collection, they will receive an additional DT for each item sold on DroppingNow.
If somebody does a primary drop of their 10,000 PFP collection on DroppingNow, they would get 20,000 DT + 10,000 DT = 30,000 DT. The remaining 10,000 DT goes to DroppingNow. So in practice, the fee distribution for each sale ends up being - 1.875% of the marketplace fees to the seller and 0.625 % to DroppingNow.
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