Devs Do Something!!! — Daedalyst Dynamic Mint Pricing in Turbulent Markets
TL;DR — Mythic Minotaurs will have a dynamic mint pricing model with a floor and ceiling based on the price of SOL and a $200(ish) USD mint price target. The minimum SOL mint price is 1.8, maximum is 4.4, and we’re targeting somewhere between 2.4 and 2.9 SOL. The final rate will be locked down 2 weeks before the mint date.
Daedalyst Dynamic Mint Pricing Model
This has been one of the most memorable weeks in the crypto space in recent years, if not ever, and it’s not over yet. With the collapse of Terra/LUNA/$UST and the consequential liquidations all hell has broken loose across the entire ecosystem with prices collapsing everywhere. Given the current market turbulence the Daedalyst team has built a model to give prospective investors some certainty on our upcoming mint.
The Daedalyst team is leveraging research done by Daren Matsuoka of Andreessen Horowitz that shows the best returns are made on projects that mint between $150-$300. To talk through the math behind this model briefly, Matsuoka did a study of the top 150 ETH collections on OpenSea and found that the sweet spot of ROI was in projects minting between 0.05–0.10 ETH. Any higher and investors couldn’t see large enough returns, any lower and the project owners couldn’t gather enough funds to make a robust product. The ETH price was ~$3,300 on 3/31/22, the day the article was published, which gives us a $USD-adjusted mint price target of $165 to $330. Using the law of round numbers, we adjusted this target to the $150–$300 range.
With this range in mind, Daedalyst targeted an optimal $USD mint price of $200 per Mythic Minotaur. Our primary goals are to drive mid-to-long term ROI for Mythic Minotaur holders and to build an analytics platform that adds true value to the Solana ecosystem. A mint price around this optimal target would give us enough funding to onboard key team members, cover expenses for 18–24 months and expand the project in pursuit of these goals. Additionally, it would help us to boost the return rate of our profit sharing mechanism by which we liquidate a % of our project treasury each month and share it with the NFT holders.
Given the monumental swings in crypto markets this week, the team decided that we can’t rely purely on the $USD mint target and that we needed to implement a floor and ceiling in our pricing model. If SOL goes to $10* it would be unfair (and unrealistic) to expect a 20 SOL mint price in order to achieve our target. Alternatively, if SOL (somehow) goes back to $250, we think it’ll be short lived, so we will have a minimum SOL mint price.
Below is a chart of our pricing model showing the expected range between our floor and ceiling limits based on the price of SOL.
The MIN Mint Price = 1.8 SOL [SOL > $100]
Our TARGET Mint Price is between 2.4 — 2.9 SOL
The MAX Mint Price = 4.4 SOL [SOL < $50]
We are going to stick with this model regardless of which way the winds are blowing for Solana and crypto broadly. If you want to learn more about what went into this decision, how to do modeling like this yourself, or have questions on anything else, feel free to reach out via the channels below.
Thanks for reading!
-Ryan (RD Blockhead)
Twitter: @RDCryptoworks or @Daedalyst
Discord: RD Blockhead#8189
Email: [email protected]
*I will singlehandedly pump Solana back to life if it goes to $10