The Mechanism

Primary Market

For each Capybara NFT, 50% of the minting cost is transferred to the wallet address that garners all base value.

The base value collected is not just left in the wallet and slowly gets eaten up by inflation. It will be invested in the designated pool of Hotpot Finance to generate a high yield.

Secondary Market

For those potential buyers who are not on the whitelist and are not qualified to mint Capybara NFTs, the secondary markets are where they go for a scavenger hunt.

You might wonder whether trading NFTs on the secondary markets would affect base value negatively.

The answer is no.

On the other hand, the more transactions made on the secondary market, the more the base value grows. Here’s how it works.

Every transaction made on the secondary markets would usually grant the artists or the team up to 10% of the selling price as royalty fees. Nevertheless, not all 10% are classified as royalty fees to the team.

The team would only keep 5% of the selling price as royalty fees, whereas the other 5% are garnered and classified as the base value.

In this case, the more times one specific Capybara NFT is traded on the market, the more valuable it should be as it indeed has more intrinsic value.