With the NFT market continuing its meteoric rise, wallets are being flooded with JPEGs as owners hope to ape in to a potential winner. However, the rule of speculative investing is at work, and 99% of those projects will end up going back to zero. With these NFTs having no market or leaving users hung out to dry after a rug pull, what will be the fate of these millions of cursed NFTs?
Enter IlliquidDAO. The DAO that touts being the place to "send all your worthless JPEGs."
It's a simple scheme and passes the instinctual Twitter test of seeming clever and meta upon first glance. The input of the project is clear. They are directly addressing a growing problem. The output is not certain, other than being promised $JPEG tokens in return for your NFTs. How those tokens will perform in the long run is yet to be determined. But as a project, they have found a way to speak to the largest possible addressable market: every NFT wallet holder.
As of this posting, 12 million NFTs have already been sent to the IlliquidDAO Treasury. The number continues to rise and the $JPEG tokens keep getting distributed.
There is no roadmap for the project yet, beyond a breakdown of how the 100 million $JPEG tokens will be distributed. 70% will go back to the Community via airdrops. A portion will be held in the treasury. (Perhaps some of the NFTs will prove to be not so worthless after all, or some whales will donate blue chip NFTs on a lark to help fund the project.) Another subset will be held for future incentives. And the smallest portion will go to the founders. On paper, the ratios don't smell classic rug pull. There is no promised utility other than the tokens, and the founders are taking a minimal cut.
Perhaps this NFT recycling program is simply to give rise to a new alt-coin, that has an ongoing engine to be continually financed through forgotten JPEGs. It's a clever scheme and over time it will be interesting to see what gets built around the core concept. Having a one-stop destination to discard of illiquid NFTs is intriguing as people look to better curate and become more selective around what they hold onto.
It's also interesting to see a DAO built around emerging NFT behavior. It's not over-promising real world results or world domination. It's simply filly a need that everyone in the space can relate to. The opt in is easy. You only send the NFTs you don't care about into a Treasury of losing NFTs. It's a lose-win situation. Maybe the $JPEG tokens will catch on. If not, at least your wallets are a little lighter with the dead weight being stored somewhere else.
It's another interesting theoretical DAO project to follow. And who knows, maybe a roadmap will pop up that adds some surprise utility at some point down the road. Until then, happy recycling and continue to collect and hold onto only what you believe in. Send the rest on over to IlliquidDAO and claim some of those $JPEGs to see what might be in store for you in the future.