The Strategy
How we grow our position, pay out dividends, and stay zero ponzi.
The overarching focus of the Founders NFT collection is to create a truly non-ponzi system that generates reliable passive income for the foreseeable future. In order to do this, the Sniperz team had to rethink what crypto is and how a project should be designed.
Many projects work off of the idea of giving someone the money that is invested from someone else. This “Rob Peter to pay Paul” Ponzi dynamic has led to the failure of countless crypto projects in the space. To completely eliminate the ponzinomics, the team decided to go against the grain with many common crypto project ideas. The first of which, is the size of the community.
Many projects run off of the idea that you should always get as many people to invest as possible. The sad truth is that the more people that are invested, the more people need to be paid at the end of each cycle. If a project promises a 2% daily return, and they have 10k members, and each has 1k invested, then the project needs to generate 2k every single day without fail to be zero ponzi. In such a diverse market, that is not always realistic, which is why The Sniperz refused to promise the undeliverable. Instead, the Founders NFT collection is limited to only 200 NFTs, each receiving .5% of the total dividend payout each month. The limited number and fixed price of the NFT will help to alleviate the inflationary systems that kill so many promising projects.
Here is how the dividends will work:
The sales from the NFT collection will go into an investment wallet. That wallet will be used for investments deemed smart and safe by a panel of experts. As the investments yield profit, a portion of the profits will go back to the NFT holders each month. Another portion will be re-introduced into the treasury investment wallet, thereby growing the total amount of funds that can be used for investments.
Dividend payouts will only be made when the investments are net positive. This way, there is never a possibility of paying investors with other investors’ money, creating a ponzi-free system. The intent will be to double and triple the investment wallet in as short of a time as possible.
Here is an example of the mechanics in action:
The panel decided to invest 10k of the treasury wallet into PROJECT X.
The investment turns out to be profitable and yields a gain of double the investment at 10k, meaning the team now has 20k. The original 10k, plus an additional 5k goes back into the treasury wallet, and 5k is added to the month dividends for the NFT holders. In this way, the team helps to build larger and larger investments while still paying holders on a predictable monthly basis.
For a breakdown of what type of investments the Sniperz will look at, please see the Profit Generation section of this white paper.
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