GM frens,

At its best, the Web3 world exists at the intersection of artists and engineers.

This potential for collaboration was recently demonstrated by Art Gobblers who successfully captured consumers attention & imaginations to launch a Web3 art factory.

In today's edition of The Ground Floor we will be breaking down Art Gobblers unique approach to curate the right community, its approach to tokenomics to develop a self sustaining eco-system and the challenges they will face.

The Future For Art Gobblers

Breaking down the past, the present & the future for Art Gobblers...

Art Gobblers launched on the 31st of October 2022.

The project is a collaboration between the VC firm Paradigm that is co-founded by the co-founder of Coinbase, Fred Ehrsam alongside the founder of Rick and Morty, Justin Roiland — an animated TV show that has been viewed over 10 billion times globally.

What is Art Gobblers?

Visually, these 10,000 Art Gobblers are colorful beings that love to gobble art which updates their aesthetic based on the artwork they consume.

Bear Markets Are For Builders

In the bull market, multiple creators could successfully sell out 10,000 NFT collections each week — raising millions of dollars in the process.

Today, selling out a 10,000 collection is difficult, and in response to these market conditions, many projects are instead opting to free mint their collection to guarantee their ability to overcome the first hurdle every NFT project faces: selling out their collection.

While this strategy is a sure way to sell out a collection, it far from guarantees a projects ability to succeed long term which requires projects to continuously come up with new & innovative ways to capture & retain consumers attention.

Curating The Right Community

25 days ago, 20% of the Art Gobblers collection (2,000) were minted for free.

This approach laid the foundation for the "Art Gobblers factory" whereby artists are encouraged to create art using the "canvases" they can purchase via the native Art Gobblers token called "Goo" that you earn from holding an Art Gobbler.

To align incentives, the more Gobblers you hold, the more Goo you can generate.

The more Goo you generate the more canvases you can acquire that allow digital creators to submit their art work to the Art Gobblers ecosystem.

Why Introduce Such Complexity?

The creators of this project are seeking to do something very unique — to create a self sustaining ecosystem that supports digital artists.

While this is undoubtedly difficult to do, with the right creative & media distribution support from Justin Roiland — Art Gobbler as a project is uniquely positioned to support such an ecosystem of digital artists.

Such support from Justin Roiland is without a doubt the biggest opportunity for Art Gobblers to succeed, however, it's arguably the area of greatest uncertainty as it's unclear how the creators of the project will continue to support this ecosystem.

The Future For Art Gobblers

The value of any NFT is determined by the supply & demand of consumers.

In the minds of the majority of people who currently live on this planet we call home, the idea that digital goods should hold value is nonsensical.

The Web3 World likely didn't benefit from the long list of cartoon animal collections that launched during the peak of the NFT bull run whose success was based on promises they couldn't keep, however, this emerging industry has an opportunity to right these wrongs.

Despite the lack of clarity regarding the support Justin Roiland & Paradigm will provide Art Gobblers moving forward, it seems very likely that they will leverage their respective networks to support the ecosystem of digital artists they are developing.

Should this support result in Art Gobblers accomplishing 10% of the success Rick & Morty has experienced to date, it's going to be absolutely fascinating to witness how this attention flows to the floor price of the project & to the digital artists within their ecosystem.

3 Things You Need to Know

1) The Web3 World Is Global

Floor was launched 425 days ago.

Today, Floor is actively used in 112 countries around the world = every 3.7 days Floor is used by someone in a new country.

This stat perfectly captures the global nature & global interest in Web3.

2) Chimpers x Teenage Mutant Ninja Turtles

Earlier this week, Chimpers announced a partnership with Paramount — the parent company of the Teenage Mutant Ninja Turtles.

What is Chimpers?

Chimpers is a 5,555 NFT collection created by two twin brothers TimpersHD and NFT1nsight and their good friend Ser Joey that launched in May 2022.

Interestingly, this news caused a 10% increase in the floor price of Chimpers — in the bull market this time last year, we suspect such news would likely have caused a 100% increase.

In our eyes, such slow price movements are a very healthy sign given the lack of details surrounding this deal & it speaks volumes to the rapid rate at which the Web3 world is maturing to selectively support projects.

3) Thailand Bets Big On Web3

Thailand, home to 69 million people recently announced an innovative in person NFT game.

Last year alone, over 35 million tourists visited Thailand spending over 4.8 billion U.S. dollars, however, to encourage tourists to travel to multiple locations, the Tourism Authority of Thailand has launched a Web3 project.

To claim these NFTs, tourists must travel to these five locations across Thailand & once you collect 3/5 NFTs, tourists can unlock deals, discounts & free experiences all across Thailand.

More details can be found here. 😇

Food For Thought 💭

Until very recent times, digital goods didn't accrue value as the cost of reproducing a digital good was $0 as the only cost incurred was the cost of storing this file in the cloud.

The introduction of NFT's was a paradigm shift as it provided creators with the opportunity to have a fixed supply of their digital creations, with on-chain provenance that allowed collectors to effortlessly verify their claim that they possessed ownership of these assets.

While this new technology stack by no means guarantees an NFTs ability to accrue & retain value, it laid the foundation for digital assets to accrue value.

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See you next time! — OB1