The HODL Contract NFTs are unique NFTs created by each project launching a HODL contract. Each investor in the HODL contract gets an NFT based on his investment!
This means that if someone missed that time frame they can’t really invest in the specific HODL contract. It also means that investors who need funds, for whatever reason, would have to cash out in order to get them.
Although this is a disadvantage, its one that still does not outweigh the advantages of the HODL contract. One way a project can overcome this is by launching multiple smaller HODL contracts in different time periods instead of one big HODL contract.
However, we wanted the HODL contract to allow as much HODLing as possible, in the most efficient way.
Introducing.. The HODL Contract NFTs!
What Are The HODL Contract NFTs?
By having these NFTs, the disadvantage we described above is no longer there!
Here is a simple example that will show why.
Investor A bought into a HODL staking contract of “Stake $X get $X” with an initial APR of 20%. He deposited 1000 $X tokens, worth $1000. The contract is for one year.
one month past in the contract and investor A wants to cash out. Assuming no one else cashed out, he will get 20% / 12 = 1.66% of his investment which equals to $16.6 reward on his $1000 investment.
Investor B missed the chance to join that contract but sees great potential in $X token and wants to stake it for long term.
Now, all that is left is for investor A and B is to find a price they are both comfortable with and they can make the deal and transfer the ownership of the NFT.
There are a few benefits of having the NFT system:
- Investors eager to cash out have another way to make even more money WITHOUT cashing out.
- Investors who are hesitant about a depositing in a certain HODL contract, or missed the deposit time frame for any reason, can still invest in it by buying an existing HODL NFT of that contract.
- The project benefits that there is a lower cash out rate, and as a result more HODLing of the project tokens in the NFT.
- The NFTs can be sold in NFT marketplaces, giving the project even more exposure and token demand!
By now, you can see how beneficial the HODL contract NFT system is for both investors and projects, but there is more…
We know that one of the most important thing for a project and its investors is the exposure and branding of the project.
That's why we decided to take it one step further and make the NFTs Brandable!
Every project launching a HODL contract will have the ability to have their OWN background image so their NFT will be one of a kind!
With that option, the marketing possibilities are endless.
As an example, a project can launch a unique staking contract for its 1 year anniversary and have a their designer design a unique NFT background combining their logo and some balloons or fireworks.
Or 2 projects announcing a strategic partnership can create a “Stake $X get $Y” campaign with a unique background image of their logos combined.
By now we hope you are as excited about the upcoming launch of the HODL Staking / Farming Contract along with its customizable NFTs as we are.
The Optimus Team