Once thought of as solely digital hype, the realm of non fungible tokens (NFTs) is no longer confined to just pixelated art and celebrity collectibles. Over the last couple of years, a new generation of these tokens have emerged, carrying with them intrinsic value not through speculation, but through functionality enabling holders to participate in offerings that generate measurable revenue.
In this context, uTrade’s uShark NFTs come with a marked approach when it comes to profit-sharing, allowing holders to own a direct stake in the platform’s success (all of which is received on-chain with a transparent distribution of real earnings generated by uTrade’s trading ecosystem)
To elaborate, when an individual holds a uShark token, they are given perpetual rights to a portion of the platform’s profits with uTrade taking 50% of its net trading profits and allocating it to an on-chain distribution pool for NFT holders. The payouts are then determined by a straightforward tiered system, namely Bronze, Silver, and Gold (representing 1, 2, and 4 shares of the profit pool, respectively).
For example, if uTrade generates $100,000 in profit for a particular month, a Bronze NFT might yield roughly $6.25 for that period, Silver about $12.50, and Gold around $25, with these numbers being dynamic and potentially scaling along with the platform’s performance. The profit-sharing is automated via smart contracts and that earnings are dropped directly into holders’ wallets as passive income streams.
Even more importantly, the supply of these NFTs is strictly limited to only 5,000 NFTs in total (500 Gold, 1,500 Silver, 3,000 Bronze), corresponding to a fixed pool of 8,000 profit-sharing shares. This cap ensures that an NFT owner’s percentage of the profit pool cannot be diluted.
Reinvesting proceeds for growth and stability
From the outside looking in, uTrade’s model is designed to continuously strengthen its ecosystem, with 100% of the proceeds reinvested back into the project’s growth as per a pre-determined allocation. In this regard, 75% of the NFT sale revenue goes straight into trading capital, providing the funds that fuel the platform’s automated trading strategies (which in turn generate the profits shared with NFT holders).
Similarly, another 15% has been allocated to the project’s treasury and infrastructure, bolstering development, security, and scalability while the remaining 10% covers operational costs to keep the platform running smoothly.
By channeling funds this way, uTrade offers up a feedback loop where more trading capital and better infrastructure lead to potentially higher trading profits, which then result in larger profit-sharing payouts. This self-reinforcing cycle means the success of uTrade’s services directly feeds into rewards for the community. In addition to this, uTrade also commits a portion of its ongoing profits into token buybacks and burns, indirectly enhancing the value of its tokenomics.
One step at a time toward redefining the NFT landscape
By giving NFT holders a transparent share of its actual business revenue, uTrade has made tangible strides in transforming NFTs from digital collectibles to equity-like stakes in a continuously evolving trading ecosystem. In fact, this integration of profit-sharing and limited NFT supply creates a feedback loop via which the community can share in the upside of the platform, giving birth to tokens that are grounded in real world use cases rather than mere speculation.
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