Brave Dogs are sharing their net revenue with their NFT holders — How will it work?
If you are here, you have probably already heard of the new CNFT project Brave Dogs — Space and Beyond.
We, the Brave Dogs team, made our first appearance on Twitter on November 13, 2022, with a sneak peek tweet that received more than five hundred likes within a day and thousands of followers within a week—making us one of the fastest-growing CNFT projects at that time.
Since then, we have established our dynamic presence on Twitter with over 1800 tweets and hours of Space Appearances to date. We did not take long to Doxx ourselves with the freshly baked KYC platform, powered by Stripe, from BIG and introduced the two co-founders, Woulvi and Neo, to establish trust and Transparency.
We have also developed our own multi-sig mint platform, "BraveMint," and have the opportunity to become the official Mint partner of multiple projects and individuals, including Blockpad of The Block Investment Group, Cardano Thor, and Jack Friks. We have minted more than 25K NFTs so far ( till March 07, 2023), received overwhelmingly positive feedback, and even got featured by the great Cardano Whale!
However, the vision of Brave Dogs is not just limited to our minting platform but rather the beginning. BraveMint was the first stepping stone, the first SaaS (Software as a service) product of our own development lab, BraveLabs.
What is BraveLabs?
BraveLabs is a development lab that aims to bring pioneering utilities into the CNFT space and generate revenue at the same time. WenftDrops (an advanced CNFT calendar) was the first product of BraveLabs that went live on March 2022. Since then, we have listed over 420 CNFT projects on our calendar and arranged thousands of giveaways.
BraveMint was the second product of BraveLabs, first released in December 2022. We are working on three more products simultaneously and expect them to go live within Q2 of 2023.
Revenue Share Model
30% of the net revenue generated from BraveLabs (current and upcoming products) will be shared among Brave Dogs NFT holders on a semi-annual basis.
A total of 20% of the shares will be allocated and shared among three collections, namely, Genesis Dog Tag, Xperience Pass, and Brave Dogs Genesis Collection.
Initially, 12.32% of shares will be distributed proportionally among these three collections. Subsequently, an additional 5.52% will be allocated post-mint as Stacking Rewards, benefiting the existing Brave Dogs NFT Collections holders.
It is important to note that our policy IDs do not have any time lock to facilitate this.
While the PFP collection may not initially hold the complete 17.8% of shares (the remainder will be acquired through Staking), the revenue distribution calculations will still consider the collection's entire 17.8% share allocation.
By adopting this approach, we aim to encourage staking activities, providing rewarding benefits to the holders while simultaneously sharing 20% of the revenue among the collections.
Rest 10% will be distributed with the future collection if we drop any.
Breakdown
So, how will the revenue be distributed on the individual holder level? Let's dive into the details.
At the moment, our primary revenue sources are Brave Mint, Sirius, Mystery Chest Events. We are charging around 4% [Subject to change] of the mint price as a service fee on BraveMint, and as for WenftDrops, we are still offering free services. Let's start with BraveMint.
If we are to mint only one project a week with a collection size of 5000 NFTs and a mint price of 100 ADA at a 4% service fee rate, the total sales would be around 5000*100*0.04 = 20,000 ADA per project, approximately 1.04M ADA in revenue per year.
We can estimate around 1M in net profit from that revenue by subtracting the operational cost. If you would like to know more about our net profit calculation, please navigate below to the "Net Profit Calculation" section.
Not to mention, this is only from one of our products. We are already working on two new ideas and are projected to launch at least 3–5 products within 2023 and 7–10 products within 2024.
Net Profit and Revenue
Let's get familiar with the following terms:-
Revenue: Revenue is the entire income a company generates from its core operations before any expenses are subtracted from the calculation.
Profit: Profit is the amount of income that remains after accounting for all expenses, debts, and operating costs.
Now that we know the difference between revenue and profit, let's jump into our potential expenses.
Our primary expenses are Server Cost, IPFS hosting, BlockFrost, and a few other subscriptions that are required to keep our operation running. Unlike most CNFT projects, we don't hire third-party devs to develop or maintain our infrastructure, as our core team is the dev here.
The salary of our dev ( core team) will be disbursed from the NFT sales and future royalty and will NOT be considered as an expense from BraveLabs.
Here is our potential area of monthly expenses so far (last updated: March 7, 2023).
As you can see, our current operational cost is around 1600 ADA per month or 19200 ADA per year.
Please keep in mind that we didn’t include the salary of our core team or discord moderators in this process as they will be disbursed from the project’s treasury fund which is consist of the initial NFT sales and royalty.
As mentioned earlier, we estimated to have only 1.04M ADA in annual revenue from BraveMint. Let's calculate net profit:-
Net Profit Calculation:-
- Monthly Expenses: 1600 ADA
- Yearly Expenses: 1600 * 12 = 19200 ADA
- Yearly Revenue: 1.04 M ADA
- Yearly Net Profit: 1,040,000 — 19,200 ADA = 1,020,800 ADA
Please understand that these values are estimated and demonstrated as an example. We strongly advise you only to purchase a Brave Dogs NFT if you have a genuine interest in owning the artwork and are satisfied with the Utility that we already have delivered. Do not consider anything we described here as financial advice or investment.
Also, keep in mind that the value of Cardano, cryptocurrencies, and NFTs can fluctuate greatly, so please exercise caution when making your decision.
Future Acquisition
However, getting a piece of net profit is only one of the perks of having some BraveLabs shares. If BraveLabs gets acquired by a large entity in the future, our shareholders will also get their fair share of the total valuation of the company at that time.
Our goal is to build a brand on Cardano that is fueled by utilities, creativities, and intellectuals. Let’s go to space and beyond!
Woof Woof!!
