decrypt.co
Holders of Ethereum-based, non-fungible tokens (NFTs) EulerBeats earned roughly $1.15 million in royalties in the first week after the project was launched, according to Dune Analytics.
NFTs are a special type of crypto assets that are indivisible and unique. Each NFT is one of a kind (although they can be minted in limited batches), which guarantees digital scarcity and can result in them having value for collectors.
EulerBeats are small audio tracks and artworks. They were named after legendary mathematician Leonhard Euler (pronounced "oiler"). Their tracks and artworks were both generated using Euler's phi function.
Well-known billionaire investor Mark Cuban, who has been on an NFT shopping spree lately, owns at least two EulerBeats and called them “the most genius idea ever.” The project was created by blockchain startup Treum, which is backed by Ethereum development studio ConsenSys (which also funds an editorially independent Decrypt).
There are only 27 unique EulerBeats LPs in existence, with each initially priced at 0.271 Ethereum (ETH) ($409) plus transaction fees. At the same time, other users can mint—create them on the blockchain—and buy “prints” of them, akin to buying a vinyl plate with a licensed music track on it.
EulerBeats produce royalties
The EulerBeats also have an in-built revenue stream. The holders of the 27 original EulerBeats receive 8% in royalties when each print is minted and sold for the first time.
According to Dune Analytics’ data, around $1.15 million in cryptocurrency has been paid out to the holders of the original EulerBeats in just a week since they launched.
It becomes more expensive to mint the prints as more get sold. This is because the pricing is on a dynamic bonding curve. That means that they start cheap and get increasingly more expensive as each one gets bought.
Mark Cuban says the audio-NFT project @EulerBeats is “the most genius idea ever.” pic.twitter.com/En0NpTRti6
— Bankless 🏴 (@BanklessHQ) February 23, 2021
While the owners can sell their prints on the secondary market—on platforms such as Opensea—they have another option. If they feel that the prints are getting overvalued, they can always burn theirs and get back 90% of the current cost of minting one. The funds for this come out of the project’s reserves.
At press time, the first EulerBeat, “LP 01,” is leading by far in terms of user interest. It has brought its owner $141,000 in royalties (paid in cryptocurrency). Minting new prints of this EulerBeat is becoming more expensive too; it currently costs around $65,000.
Other EulerBeats have generated royalties between roughly $27,000 and $67,000 via prints. Their prints are a bit cheaper to mint and buy too, with prices as low as $7,300.