DEATH SPIRAL OR NEW LIFE?: CyberKongz Announces A New Kind Of NFT Strategy Coin Dubbed $DEATHSTR, That Perpetually Lists NFTs For A Loss!

Death spirals or new life could soon be coming to the NFT market as CyberKongz prepares to turn the strategy coin model on its head with $DEATHSTR, a token designed to buy and sell NFTs for 20% below the lowest listed floor price.

With Ethereum on life support and the NFT market with one foot in the grave, CyberKongz announced an innovative new strategy coin that hopes to speed up its token burns, give NFT traders easy wins, and give long term collectors the opportunity to join an NFT community while staying in the green.

 

 

“Born from the same foundational mechanics, DEATHSTR introduces dynamic target selection, inverted listing logic, and increased velocity to the existing model.”

 

Unlike Token Works’ strategy coins, which each focus on a single NFT collection perpetually, $DEATHSTR will change its focus every three days, keeping up with the current meta and being voted on by holders.

Once $DEATHSTR holders have decided on a collection, the coin will use its trading fees to purchase NFTs from that project and list them 20% below the floor price. This sounds nuts at first, but it could lead to a lot of activity onchain.

“Relisting NFTs at a discount, offers users an opportunity to trade and collect NFTs,” Cyber Kongz wrote. “The 20% arbitrage creates an opportunity for individuals to trade for profit, or get hold of NFTs at a discounted price for their collection. With it, we introduce a method for the buyback mechanisms of the strategy to act faster and more frequently in buying back and burning DEATHSTR. This accelerated capital flow, paired with the dynamic selection process, offers a unique variation of the classic strategy tokens currently available.”

After CyberKongz announced $DEATHSTR, Yuga Labs VP of Blockchain 0xQuit called the idea a “perpetual paperhand machine” and said he can’t wait to see it in action.

“What DEATHSTR should do well is bring in community members, not from one NFT community, but from many,” he wrote. “This is because every 3 days, holders vote on a new collection to target. So yeah, it's not as efficient as a token that just buys and burns itself, but it should in theory have more volume, and thus higher burns. At least that's the bet that the Kongz just made. Excited to see how it plays out.”

 

 

At the time of publication, we do not know when $DEATHSTR will officially launch, but we do know it will have a 1 billion token supply and follow a fair launch model with a 99% initial tax that decreases by one percent per minute, similar to Token Works’ coins, before settling at a fixed 10% fee used to fund NFT purchases.

For more information on $DEATHSTR, readers can view CyberKongz’s full post below:

 

The Gazette will keep you posted on $DEATHSTR and will let you know when and how you can ape in. Stay tuned for updates!