On 11 August, the Pudgy Penguins NFT project announced that it is preparing a line of toys that will be licensed directly from the community as another way to monetize the intellectual property owned by those who buy the digital asset.
The products were named “Pudgy Toys” and may soon go into production. Even though the details of how the holders of these popular NFTs will earn money from a licensing deal are not yet clear, the crypto community has reacted positively to the news as indicated by the behavior of both the floor price and trading volumes of these non-fungible tokens (NFTs).
In the past 7 days, data from Dapp Radar indicates that the volume of Pudgy Penguins sold in different marketplaces has nearly doubled to $3.7 million while the floor price of the NFTs has also risen 62% to $5,830.
During this same period, the project’s NFTs ranked 7th in terms of trading volume and were only surpassed by the dominant brand in the space – Yuga Labs’ Ape Yacht Club and Otherdeed NFTs.
Meanwhile, data from NonFungible.com shows that several Pudgy Penguins have been sold in the past 7 days at prices higher than $20,000 or around 10 ETH tokens. This is nearly 4 times the floor price and it is a clear indication that demand for these assets is rising.
New PenguPins Airdropped to the Holders of Licensed Pudgy Penguins
Only a handful of NFTs will be participating in the licensing deal initially according to the tweets the developing team has shared with the community. Depending on the success of the initiative, it is highly likely that most of the project’s NFTs will have the possibility of participating as well if the demand for the toys is high.
A day after the toys initiative was made public, the developing team also launched the second issue of penguPins. According to the announcement, each of the wallets that hold the NFTs that will participate in the initial licensing agreement for Pudgy Toys will receive sixteen tokens each in their respective wallets that will allow them to be identified as holders of a licensed Pudgy Penguin.
In the future, other similar NFT tokens will be created to quantify the “impact and involvement” of some of the NFT holders within the community based on the number of initiatives they are actively participating in.
What is a Licensing Deal and How Can It Generate Revenues for NFT Holders?
A licensing deal is an agreement in which the owner of a technology, idea, or another type of intellectual property gives a third party the right to commercialize that asset in some way. One good example is music. An artist can allow a certain platform to distribute his/her songs in exchange for royalty payments or another similar arrangement.
In the case of the Pudgy Penguins deal, the holders of the NFTs that will be used to create the toys will be compensated in some form – not yet disclosed how by the developing team – for licensing their properties to a third party.
It appears that the specific terms of the agreement will be negotiated by the current owner of the project – Luca Netz – and his team.
Back in April this year, Netz bought the Pudgy Penguins project from its four original co-founders after the community put up a vote to outs the leadership due to their inability to live up to the promises they made in terms of creating an entire ecosystem for the NFTs.
The project’s 8,888 still unallocated Pudgy Penguins NFTs were bought for $2.5 million by the LA-based entrepreneur and avid collector of NFTs. The community has high hopes that Netz involvement will help the project in jumping to the next level.
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This article was written for Business 2 Community by Alejandro Arrieche.
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