Issue 30 🍵 Get paid to lose an auction

Learn about bid-to-earn.

Disclaimer: This newsletter is not financial advice. Disclaimer that Elle was an early Aavegotchi Aapprentice and holds assets in the game. We buy what we like, and you should buy what you like.

Aavegotchi is a Tamagotchi-like game, with digital ghosts that you can pet. You can also put on Wearables, and the more you take care of your pet, the more you climb a seasonal leaderboard and prizes.

🌱 They recently held an auction for 15,000 new Portals (needed for summoning new playable ghosts) and other NFT Wearables, from August 26th to 29th. Bids had to be placed with the Aavegotchi token, $GHST.

🌱 But a twist: each item was its own independent auction. And not only were there over 10,000 auctions running at the same time, they used the GBM Auction system, which enabled Bid-to-Earn. Essentially, you get paid if you get outbid.

🌱 Where does the free money come from? Well, when a sale in their marketplace happens, the Aavegotchi marketplace usually takes a cut. In this system, part of that cut was allocated for creating these rewards. So if I bid a 100 $GHST and someone outbid with me a final entry of 110, 1 $GHST goes to me and the remaining 109 $GHST goes to Aavegotchi.

🌱 As the NFT market has grown hotter, projects are attempting different distribution mechanisms, and none have been as enjoyable as Bid-to-Earn. As a participant, I loved getting free money to bid again! It also all runs on Polygon, not Ethereum, so I was in profit from the first moment I got outbid.

🌱 For the project, it allowed for organic price discovery. Instead of everything selling for a flat price, what ended up happening was that special IDs (Portal 10,000) and other items that the community deemed valuable were bid up accordingly. This probably ended in a larger final sale, which is great, because the proceeds go back to the community in the form of game rewards.

🌱 We like them thoughtful mechanisms.

Read more about Aavegotchi and GBM Auctions here.

Other news

🌱 Musician 3LAU launched Royal Market, “a platform where you can buy ownership in songs directly from your favorite artists and earn royalties with them.” Can’t wait to see how Royal develops!

🌱 PleasrDAO is fractionalizing the Doge NFT that they bought. If you would like to buy $DOG, it will be auctioned at September 1, 1PM EST, which is just a few hours as of the time of this writing.

🌱 LarvaLabs recently signed a deal with United Talent Agency so that the latter can represent them for licensing on more forms of media, like films, games, and more. Will we see a CryptoPunk series some time in the next few years? Who knows!

🌱 The upcoming game, Aurory, had a few hiccups with its highly anticipated sale. The 10,000 profile-pic NFTs sold out in a few minutes, but one major hiccup was the contract charging customers 1 SOL (roughly $100) instead of 5. Definitely interesting how it was supposed to be a $5M sale, but they only took $1M instead.

🌱 An Banksy NFT was bought for 100 ETH by no other than Pranksy, but the twist is that the NFT a fake. Thankfully, the seller refunded Pranksy. But as the space draws more attention, it definitely draws more bad actors too. Stay vigilant out there.

🌱 NFT social network, Showtime, is adding the ability to mint on their platform, through the Polygon network. There will be no marketplace features upon launch, so this will just be like uploading a photo to Instagram, except you own your content.

🌱 Polygon NFT marketplace, Screensaver.world, made a proposal to the Rarible Protocol DAO to fund their expansion. Screensaver claimed to become one of the first NFT marketplaces in the Polygon network to use the Rarible Protocol.

Reading list

Creative corner

Hailing from Senegal is transdisciplinary artist, Linda Dounia. On one end, you’ll see works inspired by tv screens when they are off-air, and on the other, you’ll see digital paintings and illustrations. No matter what style Linda uses, her work is just simply fantastic.

Check out more of Linda’s works on Foundation, H=N, and OpenSea! If you like what you see, why not follow her on Twitter and Instagram!

Try this: nftreats

nftreats is an upcoming marketplace to enjoy and sell erotic art.

Considering how OnlyFans has so much control over sex workers, it was exciting to see this website. There isn’t much on it yet right now, but hopefully, it gains traction.

Sex work is work, and these people shouldn’t have to be held hostage by apps and payment systems that don’t care about them beyond their ability to generate revenue.

So yeah, it’s really cool to see Web3 building these homes already. Truly love to see it.

Trying a new version of the cover story, in bulleted points. Some days, there’s just not much to talk about, so let’s see this is helps.

If you got any news, compliments, or feedback to share, you can find us on Twitter.

🍵 See you again next Wednesday! - Elle and Gian