Those of you familiar with the Cent platform know that it allows creators to make and sell NFTs on the Polygon chain for free (Cent eats the small gas fee). It is geared towards NFT buyers who don't want to deal with wallets and such, and just want to buy art with FIAT and thereby support artists, but it also allows people savvy in NFT knowledge to mint their first copy to an EVM address, allowing the collection of NFTs containing that copy to be picked up by secondary marketplaces (OpenSea, Rarible, etc) and then re-sold there for crypto.
In addition, there is a "points" system. Whenever someone sells an NFT on Cent, they have the option of pricing it in FIAT (USD for U.S. users, I don't know if that is the default choice worldwide) or in "points." When someone first signs up for Cent, which is free, they automatically receive 1500 points. This allows them to immediately buy artwork being sold for "points." If instead they decide to pay FIAT for a work, they do that to receive the NFT, and at the same time get 500 points added to their stash of points for each dollar that they spend. This allows them to replenish their points if they run out of the original 1500. Currently the minimum amount of points that an NFT can be sold at is 100, and the minimum amount of USD is one dollar.
So say for example a new user signs up. They buy one NFT being sold at 250 points, one being sold at 100 points, one being sold at 1000 points, and one being sold at 150 points. They are now out of points. They then buy one NFT for a dollar, and receive 500 points. They also buy another NFT for 5 dollars, and receive 2500 points (5 X 500), so that they now have a total of 3000 points.
Now, there is a difference as to whether someone buys something with FIAT or with points. If someone buys with FIAT, that purchase counts as a "collect." But purchasing with points does NOT count as a "collect."
This has an effect on airdrops. See, lets say you are a creator and you sign up on Cent. If you can manage to sell 10 NFTs with the buyers using FIAT, all of those buyers are then eligible for an "airdrop" of points. It's up to them to then claim their portion of the airdrop. As you continue to sell NFTs for FIAT, the next threshold you want to reach is 25 "collects." At this point there is another airdrop, which again is distributed among the people who have collected your art, since the beginning of time. The intent is to incentivize collectors to find new artists and buy their art early, so that if the artist is successful the collector will benefit from being eligible for multiple airdrops by that same artist over time. Each time the artist has an airdrop, the next one is harder to achieve (i.e. requires more "collects" than before), but to my knowledge this just keeps going on and on as long as the artist is successful.
However, I don't know how the airdrops are "divvied out" amongst the collectors, and that is the substance of the question I will ask on Cent's discord server. Depending on the answer, it will affect both how I price my next piece, as well as how I decide which pieces to buy which are very close to achieving airdrops. See the banner image of this article for reference - I have circled by status with regards to airdrops, which shows that the next NFT I manage to sell will trigger one amongst my collectors (which will include of course whoever buys that last NFT). And now for the question :
---
I have a question concerning airdrops of points. How are they divvied up amongst collectors of an artist? I need only one more collect to trigger an airdrop, and the answer could affect how I price my next NFT.
In my case, I have 24 "collects." For the sake of argument, let's assume that I priced all of those collects at one dollar each, and that I have 20 collectors total - 19 of them have each purchased one NFT for a dollar, while the last collector has purchased 5 NFTs, each for a dollar. Let's call one of the lone collectors "Solo" and the collector who has purchased multiple NFTs "Chewy."
Case 1 :
If the airdrop is divvied up according to number of NFTs purchased, and I sell the last one for 1 dollar to a brand new collector, then I assume that Solo will receive 1/25th of the airdrop, Chewy will receive 5/25th of the airdrop and the last buyer will receive 1/25th of the airdrop - the same as Solo. The apportionment would be unchanged if I had sold the last NFT for 5 dollars.
Case 2 :
However, if the airdrop is divvied up according to the cost of NFTs purchased, and I sell the last one for 1 dollar to a brand new collector, then Solo will receive 1/25th of the airdrop and Chewy will receive 5/25th of the airdrop, and the last buyer will receive 1/25th of the airdrop as before - because a total of 25 dollars has been spent. BUT, if I had sold the last NFT for 5 dollars, then Solo will receive 1/30th of the airdrop, Chewy will receive 5/30th of the airdrop, and the last buyer will receive 5/30th of the airdrop - the same as Chewy - because a total of 30 dollars would have been spent.
If I am a buyer, and Case 1 is "true," then it makes sense for me to purchase whichever NFT is the cheapest amongst the ones still on sale. If the cheapest is one dollar, buying it would trigger the airdrop, and I would receive 1/25th of it.
If I am a buyer, and Case 2 is "true," then it MIGHT make sense for me to purchase whichever NFT is the most expensive amongst the ones still on sale. If the most expensive one is five dollars, this would trigger the airdrop, and I would receive 5/30th of it. If the airdrop in both cases is the same amount (some number of points X), then I would receive more points from the drop, because 5/30 (0.1666...) > 1/25 (0.04) - in fact, i would receive 4 times as many points. The question then would be whether receiving 4 times as many points would be "worth" paying the difference between the most expensive NFT and the least expensive one.
If I am a seller, and Case 1 is "true," then it makes sense for me to not charge more than I usually do for an NFT.
But if I am a seller, and Case 2 is "true," then it makes sense for me to sell the last NFT for a much higher value.
Note also the assumption made above - that the total airdrop amount (i.e. the number of points X) is fixed regardless of how the airdrop is divvied up. Is this assumption true? Because if not, all of the above reasoning would need to change.
As both a buyer of other's works and a seller of my own works, I want to sell that last NFT in a way that makes sense for both the buyer AND the seller, and apply that strategy both when I sell NFTs and when I decide how much to pay for one.
Thanks for any insight!
---
