The wind of the DAT model has also blown into the NFT track 🌬️ This is also a driving force behind the recent rise of many NFTs.
Let’s draw a simple diagram to clarify this model. In short, by issuing a coin (new entity) to gain market attention and funds, it drives up the NFTs (old entities). It’s like stepping on one foot with the other, very similar to the Luna of the past.
For example, the PunkStrategy project has already purchased several CryptoPunks, but for a total of 10K NFT collection, it still cannot have a substantial impact on the floor price. There needs to be sustained trading volume and high taxes, which is quite challenging.
Some Ordinals NFT collections are also replicating this model, but Bitcoin lacks contract capabilities, so ensuring trustless automatic execution is a challenge.
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