For anyone curious about understanding PNKSTR and other STR tokens by TokenWorks with a level of financial literacy, I’ll describe what’s happening behind the game theory here: Recap of token structure [skip if you already know how STR tokens work] As most are aware, these tokens are “tax farms” with 10% of volume (token buys and sells on DEX) being taxed. 8% goes to buy NFTs, 1% to the NFT collection owner as royalties and 1% goes to buyback/burn PNKSTR. For the PNKSTR, I believe it’s just 2% to TokenWorks (but maybe 1%/1% shared with Yuga?). NFTs purchased are then listed at 1.2x purchase price and once sold, proceeds are used to buyback and burn the STR token NFT Narrative One could make the argument that you don’t even need NFTs involved, you could just tax 10% of volume and buyback/burn the token with it (this has been tried many times in a variety of ways since 2020) Including NFTs serves 3 functions: -Recruits an existing community (NFT collection holders) -Creates a meme/narrative for the token outside being a tax ponzi -Serves as a source of revenue (I’ll explain this later in the post) Functional impact With 10% of volume extracted from the STR token market, the 1.2x listing is designed to pay that capital back to the STR token holders. If we run an example of $100K in volume: $10K is taken as tax, $8K is used to buy NFTs which are then listed at $9.6K (1.2x $8K), $2K goes to -> team, collection owner or PNKSTR So total net buy pressure is slightly less than what’s taken from the tax. $2K is taken and $1.6K is returned Where does the money come from that’s returned to holders? NFT collection buyers. Of the $2,000 taken in fees in this example, long term, STR token holders/traders pay $400 of it and NFT collection buyers pay the remaining $1,600 Game theory analysis The fud narrative would be that basically these tokens obfuscate the transfer of money from NFT collection buyers and STR token traders to TokenWorks and NFT collection owners, but it’s not that simple ...