Projected Revenue Growth and Returns to NFT Holders
This page provides an in-depth analysis of the projected revenue growth across different revenue streams of the NaMo project and elucidates the potential returns that can be expected by each holder.
In addition to offering a platform for political engagement and a marketplace for merchandise, the NaMo project seeks to provide financial benefits to NFT holders. Below, we outline the projected growth of the marketplace revenue and the equity fund, as well as the anticipated changes in the returns to NFT holders.
The table presents the expected growth over a five-year period, assuming an average annual growth rate of 5% for marketplace revenue and 10% for the equity fund. These are illustrative figures; actual growth rates may differ.
The equity fund returns and marketplace revenue share are calculated based on these growth rates and the respective distribution rules (20% of marketplace revenue and 10% of equity fund returns).
| Year | Marketplace Revenue | Equity Fund Value | Equity Fund Returns | Marketplace Revenue Share | NFT Annual Return |
|---|---|---|---|---|---|
1 | $24,000,000 | $12,000,000 | $1,200,000 | $4,800,000 | $15 |
2 | $25,200,000 | $13,200,000 | $1,320,000 | $5,040,000 | $15.60 |
3 | $26,460,000 | $14,520,000 | $1,452,000 | $5,292,000 | $16.23 |
4 | $27,783,000 | $15,972,000 | $1,597,200 | $5,556,600 | $16.88 |
5 | $29,172,150 | $17,569,200 | $1,756,920 | $5,834,430 | $17.57 |
The revenue from marketplace sales and the value of the equity fund are projected to increase over time. Consequently, the annual return to NFT holders, from the combination of marketplace revenue share and equity fund returns, would also increase. For example, an NFT that provides a return of $15 in the first year could generate a return of approximately $17.57 by the fifth year, based on the growth rates assumed here.
When appraising an NFT for resale, holders should consider this potential for growing returns, in addition to factors such as the initial purchase price, the desirability of the NFT's traits, and overall market conditions.
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